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Learning, Product Innovation and Firm Heterogeneity in Tanzania

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  • Goedhuys, Micheline

    (United Nations University, Institute for New Technologies)

Abstract

Using a unique firm level data set on learning and product innovation in Tanzanian manufacturing and commercial farming, this paper sheds light on the various sources of firm learning, investment and collaboration and their relative importance for product innovation. The results indicate that larger and foreign owned firms invest significantly more in human and physical capital than do local micro, small and medium sized firms, and they are better connected to the internet. Their ways of upgrading technology also reveals a better financial endowment. Small and medium sized firms on the other hand report to collaborate more intensively with other local firms on product development, marketing and on the input market and upgrade technology through in-house activities, imitation and cooperation with suppliers and universities. By doing so, they are able to offset the scale disadvantages they face in competing for the market information and inputs – new machinery and specialised labour - necessary for product innovation in imperfect markets.

Suggested Citation

  • Goedhuys, Micheline, 2005. "Learning, Product Innovation and Firm Heterogeneity in Tanzania," UNU-INTECH Discussion Paper Series 2005-07, United Nations University - INTECH.
    • Handle: RePEc:unm:unuint:200507
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    File URL: https://www.merit.unu.edu/publications/discussion-papers/2005-7.pdf
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    References listed on IDEAS

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    Cited by:

    1. Gasper Mpehongwa, 2014. "Poverty and Voting Trend in Tanzania From 1990 to the 2010 General Elections," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 4(4), pages 562-571, April.

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    Keywords

    learning; innovation; technological change; competitiveness; multinational corporations; MNEs; small and medium enterprises; SMEs; investment; Tanzania;
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