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Are small, medium- and micro-sized enterprises engines of innovation? The reality in South Africa

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  • Irma Booyens

Abstract

This paper examines the relationship between innovation activity and firm size in the South African context. Based on data from the National Innovation Survey (2002–2004) the paper looks in particular at the nature of innovation by small, medium- and micro-sized enterprises (SMMEs). The main finding is that the innovation rate of SMMEs is relatively high, with small enterprises reporting the highest innovation rate. A limited dependent variable regression, however, determines a negative statistically significant relationship between the probability to innovate and firm size. SMMEs are therefore not more innovative than large enterprises in South Africa. This paper identifies innovative entrepreneurs and micro enterprises as important foci for entrepreneurship and innovation policy. Copyright , Beech Tree Publishing.

Suggested Citation

  • Irma Booyens, 2011. "Are small, medium- and micro-sized enterprises engines of innovation? The reality in South Africa," Science and Public Policy, Oxford University Press, vol. 38(1), pages 67-78, February.
    • Handle: RePEc:oup:scippl:v:38:y:2011:i:1:p:67-78
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    File URL: http://hdl.handle.net/10.1093/scipol/38.1.67
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    Cited by:

    1. Oluwafemi Dele-Ijagbulu & Menisha Moos & Chukuakadibia Eresia-Eke, 2020. "The Relationship Between Environmental Hostility and Entrepreneurial Orientation of Small Businesses," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 6(2), pages 347-362, July.
    2. Sun, Zhongjuan & Yu, Zhu & Wang, Cizhi & Fang, Hanqing, 2023. "Threshold effects, technology purchasing, and firm outcomes: An absorptive capacity perspective," Emerging Markets Review, Elsevier, vol. 55(C).
    3. Irma Booyens, 2016. "Global–local trajectories for regional competitiveness: Tourism innovation in the Western Cape," Local Economy, London South Bank University, vol. 31(1-2), pages 142-157, February.
    4. Oplakanskaia Renata Valerievna & Osmuk Lyudmila Alekseevna & Pogorelskaya Anastasia & Pomorina Inna, 2019. "Post-industrial university towns and the triple helix concept: case studies of Bristol, Sheffield, Novosibirsk and Tomsk," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 44(44), pages 39-46, June.
    5. Nelson Casimiro Zavale & Patrício Vitorino Langa, 2018. "University-industry linkages’ literature on Sub-Saharan Africa: systematic literature review and bibliometric account," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(1), pages 1-49, July.
    6. Ashwin Petersen & Juan-Pierré Bruwer & Suzaan Le Roux, 2018. "Occupational Fraud Risk, Internal Control Initiatives and the Sustainability of Small, Medium and Micro Enterprises in a Developing Country: a Literature Review," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(4), pages 567-580, AUGUST.
    7. Gaglio, Cyrielle & Kraemer-Mbula, Erika & Lorenz, Edward, 2022. "The effects of digital transformation on innovation and productivity: Firm-level evidence of South African manufacturing micro and small enterprises," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    8. Minshull, Lauren Kate & Dehe, Benjamin & Kotcharin, Suntichai, 2022. "Exploring the impact of a sequential lean implementation within a micro-firm – A socio-technical perspective," Journal of Business Research, Elsevier, vol. 151(C), pages 156-169.

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