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

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

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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25341.

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Date of creation: 2009
Date of revision: 2009
Handle: RePEc:pra:mprapa:25341
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  1. 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.
  2. 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.
  3. David Audretsch & Erik Lehmann & Susanne Warning, 2004. "University Spillovers and New Firm Location," Working Papers of the Research Group Heterogenous Labor 04-13, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
  4. 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.
  5. Julio M. ROSA & Pierre MOHNEN, 2007. "Knowledge Transfers between Canadian Business Enterprises and Universities: Does Distance Matter?," Annales d'Economie et de Statistique, ENSAE, issue 87-88, pages 303-323.
  6. 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.
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