Title: Innovation and knowledge spillover: insights from the Ethiopian manufacturing industry

Authors: Shimelis Tilahun; Eshetie Berhan

Addresses: Industrial Engineering, School of Mechanical and Industrial Engineering, Addis Ababa Institute of Technology, Addis Ababa University, Ethiopia ' Industrial Engineering, School of Mechanical and Industrial Engineering, Addis Ababa Institute of Technology, Addis Ababa University, Ethiopia

Abstract: Knowledge plays a key role in technological advancement and structural transition. However, many manufacturing firms, especially in developing countries, struggle to source and reap the benefits of knowledge. Using a dual study approach of manufacturing firms in Ethiopia, this paper suggests that a strong national innovation system that facilitates knowledge spillover is important. The paper also suggests that joint venture, subcontracting, and cluster-based industrial development are alternatives to promote knowledge spillover, which in turn, strengthens knowledge transfer activities, especially technology-related knowhow, in developing countries. This, in turn, empowers manufacturing firms, especially in developing countries, to catch up and leap front to industry 4.0.

Keywords: innovation; knowledge management; structural equation modelling; SEM; knowledge spillover; manufacturing firms.

DOI: 10.1504/IJQI.2020.112349

International Journal of Quality and Innovation, 2020 Vol.5 No.1, pp.33 - 61

Received: 06 May 2020
Accepted: 18 Jun 2020
Published online: 12 Jan 2021 *