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The types and intensity of innovation in developing-country SMEs: evidences from a Nigerian sub-sectoral study

Author

Listed:
  • Egbetokun, A
  • Adeniyi, A
  • Siyanbola, W
  • Olamade, O

Abstract

Understanding the types of innovations that SMEs currently undertake, and their commitment to innovation, is especially useful for policy making in developing countries. This paper, therefore, addressed two main questions: What types of innovation occur in SMEs? How intense is innovation in SMEs? We have used empirical information from a census carried out in the Nigerian Cable and Wire manufacturing industry. Questionnaire and interviews were the primary means of data collection and the data covered the 4-year period between 2003 and 2007. We found a high prevalence of organisational innovation and low prevalence of diffusion-based innovation. Innovation intensity was low at 0.114% per capita training investment. Interestingly, our findings revealed that process and marketing innovation accompanied each other. We conclude that SMEs in developing countries are not innovation-inactive and that they would do better if industries are well organised and firms make higher investments in learning and capability build-up.

Suggested Citation

  • Egbetokun, A & Adeniyi, A & Siyanbola, W & Olamade, O, 2009. "The types and intensity of innovation in developing-country SMEs: evidences from a Nigerian sub-sectoral study," MPRA Paper 25341, University Library of Munich, Germany, revised 2009.
  • Handle: RePEc:pra:mprapa:25341
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    References listed on IDEAS

    as
    1. Julio M. Rosa & Pierre Mohnen, 2007. "Knowledge Transfers between Canadian Business Enterprises and Universities: Does Distance Matter?," Annals of Economics and Statistics, GENES, issue 87-88, pages 303-323.
    2. Romijn, Henny & Albaladejo, Manuel, 2002. "Determinants of innovation capability in small electronics and software firms in southeast England," Research Policy, Elsevier, vol. 31(7), pages 1053-1067, September.
    3. Audretsch, David B. & Lehmann, Erik E. & Warning, Susanne, 2005. "University spillovers and new firm location," Research Policy, Elsevier, vol. 34(7), pages 1113-1122, September.
    4. Iretioluwa O. Oyefuga & Willie O. Siyanbola & Oladele O. Afolabi & Abolaji D. Dada & Abiodun A. Egbetokun, 2008. "SMEs funding: an assessment of an intervention scheme in Nigeria," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 4(2/3), pages 233-245.
    5. Egbetokun, A & Siyanbola, W & Sanni, M & Olamade, O & Adeniyi, A & Irefin, I, 2008. "What Drives Innovation?: Inferences from an Industry-Wide Survey in Nigeria," MPRA Paper 25343, University Library of Munich, Germany, revised 2008.
    6. Basberg, Bjorn L., 1987. "Patents and the measurement of technological change: A survey of the literature," Research Policy, Elsevier, vol. 16(2-4), pages 131-141, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    types of innovation; innovation intensity; SMEs; Nigeria; manufacturing; Cable & Wire;

    JEL classification:

    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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