Enterprise innovation in developing countries: An evidence from Ethiopia
TL;DR: In this paper, the authors used survey data to analyze the determinants of enterprise innovation in Ethiopia using a multivariate probit (MVP) model and found that engagement in R&D, on-the-job training, and website ownership significantly determine enterprise innovation.
Abstract: Enterprise innovation has gained the interest of development policymakers and scholars as the bases for the industrial development. This study comprehensively analyzes the drivers of enterprise innovation in developing countries. The study uses survey data to analyze the determinants of enterprise innovation in Ethiopia using a multivariate probit (MVP) model. For this study, enterprises were grouped into four categories: all-sized, large-sized, medium-sized, and micro- and small-sized enterprises. It appears that engagement in R & D, on-the-job training, and website ownership significantly determine enterprise innovation. This study, unlike previous studies, comprehensively analyzes drivers of innovation by considering enterprises in different sizes and all at the same time. This helps identify factors most relevant for enterprise innovation at all stage which help policymakers get focused on strategy development. Based on the findings, further emphasis on engagement in R & D would help enterprises to become innovative for all categories of enterprises. Furthermore, strengthening the available formal training and diversifying type of the training that is related to skills, knowledge, and techniques that help achieve the long-term objective of the enterprises are worth considering. Enterprises also need to subscribe to different sites that help learn more and access information.
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TL;DR: In this article, the authors define the construct of dynamic entrepreneurship in terms of Schumpeterian innovativeness and then develop a hypothesis suggesting that human capital is conducive to such action.
Abstract: This paper seeks to distinguish between dynamic and static entrepreneurship. We define the construct of dynamic entrepreneurship in terms of Schumpeterian innovativeness and then develop a hypothesis suggesting that human capital is conducive to such action. In contrast, a paucity of human capital is more conducive to static entrepreneurship (defined in terms of organizational or ownership status). Based on a rich data set of entrepreneurs receiving research funding through the U.S. Small Business Innovation Research (SBIR) program, our empirical evidence suggests that academic-based human capital is positively correlated with dynamic behavior, whereas as business-based human capital and prior business experience is not.
50 citations
TL;DR: In this paper, the authors study the essence of the concept of innovation entrepreneurship and develop basic recommendations for its formation for further use by public authorities in the process of promoting the development of innovative entrepreneurship in the country.
Abstract: Innovative entrepreneurship in a market economy becomes an active factor in economic development, commercialization, creative activity of new technological ideas developers. The operation of an extensive network of innovation infrastructure, elements of which are implemented in specific forms of economic activity, is a necessary factor for the successful development of innovation entrepreneurship. The purpose of the article is to study the essence of the concept of \"infrastructure of innovation entrepreneurship\" and to develop basic recommendations for its formation for further use by public authorities in the process of promoting the development of innovation entrepreneurship in the country. In the article the content of the categories \"innovative entrepreneurship\" is defined. To achieve this goal, the following methods of scientific research were used: systematic analysis; abstract-logical method; graphical method. According to the results of the study, the suggested recommendations for the formation of innovation entrepreneurship infrastructure at the national and regional level can be used by public authorities in the process of creating a single mechanism for regulating innovation infrastructure, which would ensure interaction between business, public authorities, science and end-users of an innovation product (service) at all stages of development and implementation of innovation projects.
8 citations
Cites background from "Enterprise innovation in developing..."
...Gamidullaeva (2018) searched for ways to integrate innovation ecosystem concepts with innovation intermediation theory, identified specific types of innovation intermediation and its main mechanisms aimed at creating an efficient infrastructure and ensuring the stable functioning of the innovation ecosystem....
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TL;DR: In this article , the authors explored factors that determine the innovation of service and manufacturing MSEs: the role of entrepreneurial attitude towards innovation in Woldia city administration, and the collected data were analyzed by using SPSS v-25 and Amos graphics to conduct descriptive, factor, correlation, regression and path analysis.
Abstract: Abstract To transform micro and small enterprises to large companies, owners need to strive to launch new methods, systems, ways and innovations. Accordingly, innovation helps micro-enterprises to bounce to achieve fundamental change in their businesses. Micro and small enterprises are exposed by different factors to innovating new products and services. This study, therefore, focused on exploring factors that determine the innovation of service and manufacturing MSEs: the role of entrepreneurial attitude towards innovation in Woldia city administration. The researchers used a cross-sectional research design and followed a quantitative approach. The data were collected by using a structured questionnaire. The collected data were analysed by using SPSS v-25 and Amos graphics to conduct descriptive, factor, correlation, regression and path analysis. The study finding revealed that government support, access to infrastructure, entrepreneurial training, entrepreneurial attitude and the leadership of the owners significantly affected the innovation of service and manufacturing MSEs. Entrepreneurial training and leadership of the owners directly and indirectly affected the innovation of services and manufacturing MSEs through the mediating variable of entrepreneurial attitude.
7 citations
Journal Article•
TL;DR: In this paper, Metaiche M. et al. developed a conceptual model that has been tested empirically using data from 118 Algerians SMEs, and they have come to the following results: the capacity of innovation of the Algerian SMEs depends mainly upon entrepreneur's attributes as well as his/her financial capacity.
Abstract: Innovation has been considered as a key element for the growth of small and medium sized enterprises (SMEs) for a long time. Though this field of research has been subject to numerous studies, the links between the factors that affect innovation within SMEs still need to be clarified and investigated (Leghima, 2014). Several studies have suggested that there are many factors that lead to innovation, including individual, organizational and environmental factors as well as those related to—or are considered to be—innovation attributes (Saunière et al. 2012). They have, moreover, underlined the importance of recognizing that most of these factors can influence unevenly the process of innovation, in that they are not of equal strength nor all act in the same direction (Ducaux, 2013). In Algeria, however, very few researches have dealt with this subject (Metaiche M. & Benhabib A. 2013). The aim of this paper is to understand the entrepreneur, its human skills, financial capacity and collaboration with the external environment, the competition as well as R&D on capacity innovation of the SMEs. The choice of variables is based on a study that has regrouped several researches undertaken in 23 countries. For the purpose of this study, we have developed a conceptual model that has been tested empirically using data from 118 Algerians SMEs. After an exploratory analysis followed by a confirmatory analysis and using structural equation modeling, we have come to the following results: the capacity of innovation of the Algerian SMEs depends mainly upon entrepreneur’s attributes as well as his/her financial capacity
7 citations
TL;DR: In this article, the authors consider a wider range of types of innovation, including product and process innovations, and compare them to firm heterogeneity, and show that they are related to innovation behaviours.
Abstract: When previous studies relate innovation behaviours to firm heterogeneity, they consider mainly product and process innovations. In this paper, we consider a wider range of types of innovation that ...
6 citations
Cites background from "Enterprise innovation in developing..."
...In a developing country context, Daksa et al. (2018) and Abdu and Jibir (2018) established the prevalence of technological, organizational, and marketing types of innovation....
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References
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TL;DR: In this paper, the impact of investments in human capital on an individual's potential earnings and psychic income was analyzed, taking into account varying cultures and political regimes, the research indicates that economic earnings tend to be positively correlated to education and skill level.
Abstract: A diverse array of factors may influence both earnings and consumption; however, this work primarily focuses on the impact of investments in human capital upon an individual's potential earnings and psychic income. For this study, investments in human capital include such factors as educational level, on-the-job skills training, health care, migration, and consideration of issues regarding regional prices and income. Taking into account varying cultures and political regimes, the research indicates that economic earnings tend to be positively correlated to education and skill level. Additionally, studies indicate an inverse correlation between education and unemployment. Presents a theoretical overview of the types of human capital and the impact of investment in human capital on earnings and rates of return. Then utilizes empirical data and research to analyze the theoretical issues related to investment in human capital, specifically formal education. Considered are such issues as costs and returns of investments, and social and private gains of individuals. The research compares and contrasts these factors based upon both education and skill level. Areas of future research are identified, including further analysis of issues regarding social gains and differing levels of success across different regions and countries. (AKP)
7,869 citations
TL;DR: It is by now incontrovertible that increases in per capita income cannot be explained simply by increases in the capital-labor ratio as mentioned in this paper, and that knowledge is growing in time.
Abstract: It is by now incontrovertible that increases in per capita income cannot be explained simply by increases in the capital-labor ratio. Though doubtless no economist would ever have denied the role of technological change in economic growth, its overwhelming importance relative to capital formation has perhaps only been fully realized with the important empirical studies of Abramovitz [1] and Solow [l 1]. These results do not directly contradict the neo-classical view of the production function as an expression of technological knowledge. All that has to be added is the obvious fact that knowledge is growing in time. Nevertheless a view of economic growth that depends so heavily on an exogenous variable, let alone one so difficult to measure as the quantity of knowledge, is hardly intellectually satisfactory. From a quantitative, empirical point of view, we are left with time as an explanatory variable. Now trend projections, however necessary they may be in practice, are basically a confession of ignorance, and, what is worse from a practical viewpoint, are not policy variables.
7,108 citations
"Enterprise innovation in developing..." refers background in this paper
...A significant amount of innovation and improvements originates from design improvements like “learning by doing” and “learning by using” (Arrow 1962; Mowery and Rosenberg 1989), and such informal efforts are embodied in people and organizations (Teece 1986a, 1986b)....
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TL;DR: In this article, the authors explain why innovating firms often fail to obtain significant economic returns from an innovation, while customers, imitators and other industry participants be- nefit.
7,020 citations
TL;DR: In this paper, the authors discuss several seminal theories of creativity and innovation and then apply a comprehensive levels-of-analysis framework to review extant research into individual, team, organizational, and multilevel innovation.
1,882 citations
TL;DR: In this paper, the authors explored determinants of innovation capability in small UK electronics and software firms and found that the importance of R&D, the key role played by the regional science base in nurturing high-tech spin-offs, and proximity to suppliers.
985 citations
"Enterprise innovation in developing..." refers background in this paper
...Characteristics of the entrepreneur (Avermaete et al. 2004), regional networks, and close customer relations (Romijn and Albaladejo 2002) do not determine enterprises’ innovation....
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...…in the R & D, skills of the firms’ workforce, the firms’ investment in know-how (Avermaete et al. 2004; Dotun 2015; Raymond and St-Pierre 2010; Romijn and Albaladejo 2002), and the use of known technology transfer mechanisms (Hadhri et al. 2016) determine the enterprises’ propensity to…...
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