Egbetokun, A and Adeniyi, A and Siyanbola, W and Olamade, O (2009): The types and intensity of innovation in developing-country SMEs: evidences from a Nigerian sub-sectoral study. Forthcoming in: Int. J. Learning and Intellectual Capital
Download (244kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||The types and intensity of innovation in developing-country SMEs: evidences from a Nigerian sub-sectoral study|
|Keywords:||types of innovation; innovation intensity; SMEs; Nigeria; manufacturing; Cable & Wire|
|Subjects:||L - Industrial Organization > L6 - Industry Studies: Manufacturing > L68 - Appliances; Other Consumer Durables
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D
|Depositing User:||Abiodun Egbetokun|
|Date Deposited:||27. Sep 2010 17:21|
|Last Modified:||12. Feb 2013 01:41|
Archibugi, D., Pianta, M., (1996). Measuring technological change through patents and innovation surveys. Technovation 16 (9), 451–468.
Atkins, M.H. and Lowe, J.F. (1997) ‘Sizing up the small firm: UK and Australian experience’, International Small Business Journal, Vol. 15, No. 3, pp.42–55.
Audretsch, D.B., Lehmann E.E. and Warning S. (2005).“University Spillovers and new Firm Location“, Research Policy 34, 1113-1122.
Bala Subrahmanya, M.H. (2001) ‘Technological innovations in small firms in the North East of England: dimensions and implications’, International Journal of Entrepreneurship and Innovation, London: IP Publishing Ltd., October, Vol. 2, No. 3, pp.141–152.
Bala-Subrahmanya, M. H. (2005a). Technological innovations in Indian small enterprises: dimensions, intensity and implications. Int. J. Technology Management, Vol. 30, Nos. 1/2, 2005
Bala-Subrahmanya, M. H. (2005b). Technological innovations in Indian engineering industry: industry and firm level case studies. Int. J. Entrepreneurship and Innovation Management, Vol. 5, Nos. 5/6, 2005
Bala-Subrahmanya, M. H. (2006). ‘Technological innovations in Indian Small and Medium Enterprises (SMEs) sector: does firm size matter?’, Int. J. Innovation and Learning, Vol. 3, No. 5, pp.499–517.
Basberg, B., (1987). Patents and the measurement of technological change: a survey of the literature. Research Policy 16, 131–141.
Becheikh, N., Landry, R., Amara, N. (2006). Lessons from innovation empirical studies in the manufacturing sector: A systematic review of the literature from 1993–2003. Technovation 26 (2006) pp 644–664.
Begum, S.M. (2006). Organisational climate and research productivity of teachers in higher education in India. World Sustainable Development Outlook 2006, pp 227-236.
Bell, M., (1984). Learning and the accumulation of industrial technological capability in developing countries. In: Fransman, M., King, K. Eds.), Technological Capability in the Third World. Macmillan, London, pp. 187–209.
Bessant, J. (2003). High-Involvement Innovation. Chichester: Wiley.
Bruque, S. and Moyano, J. (2007). Organisational determinants of information technology adoption and implementation in SMEs: The case of family and cooperative firms. Technovation 27 (5), pp 241-253.
Buratti, N. and Penco, L. (2001). Assisted technology transfer to SMEs: lessons from an exemplary case. Technovation, 21 (1) pp 35-43.
Carayannis, E.G., Popescu, D., Sipp, C., Stewart, M., (2006). Technological learning for entrepreneurial development (TL4ED) in the knowledge economy (KE): case studies and lessons learned. Technovation 26 (4), 419–443.
Carpenter, C. (2001) SME FINANCE IN NIGERIA Paper prepared for the Roundtable on “Making Small Business Finance Profitable in Nigeria”, Available online at www.ypforum.org accessed May 29, 2006.
Egbetokun, A. A., Siyanbola, W. O. and Adeniyi, A. A. (2007). Assessment of Innovation Capability in the Cable and Wire Manufacturing Industry in Nigeria: a case study approach. Paper presented at the Micro Evidence on Innovation in developing Economies[MEIDE], May 31 – June 1, 2007, UNU-MERIT, Maastricht, the Netherlands. Available online at: http://www.merit.unu.edu/MEIDE/papers/2007/EGBETOKUN_SIYANBOLA_ADENIYI_Assessment%20of%20innovation%20capability...cable%20and%20wire%20manufacturing%20industry.pdf [accessed 19 July 2007].
Egbetokun, A.A., Siyanbola, W.O., Sanni, M., Olamade, O.O., Adeniyi, A.A. and Irefin, I.A. (2009). ‘What drives innovation? Inferences from an industrywide survey in Nigeria’, Int. J. Technology Management, Vol 45, Nos. 1/2, pp 123-140.
European Commission (2003). Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises. http://europa.eu/eur-lex/pri/en/oj/dat/2003/1_12..accessed April 7, 2009 European Commission, (2005). Gateway to the European Union, (http://www.europa.eu.int).
García-Muiña, Fernando E. and Navas-López, José E. (2007). Explaining and measuring success in new business: The effect of technological capabilities on firm results. Technovation, 27 (2007) pp30–46
Garcia-Torres, M. A., Hollanders, H. (2009). The Diffusion of Informal Knowledge and Innovation Performance: A sectoral approach. UNU-MERIT Working Paper #2009-13, UNU-MERIT, Maastricht, the Netherlands
Goedhuys, M. (2007). The impact of innovation activities on productivity and firm growth: evidence from Brazil. UNU-MERIT Working Paper #2007-02, UNU-MERIT, the Netherlands.
Goedhuys, Micheline,; Janz, Norbert and Mohnen, P.(2006). What drives productivity in Tanzanian manufacturing firms: technology or institutions? UNU-MERIT Working Paper #2006-37, UNU-MERIT, Maastricht, the Netherlands
Griliches, Z., (1990). Patent statistics as economic indicators: a survey. Journal of Economic Literature 28, 1661–1707.
Hadjimanolis, A. (2003). The Barriers approach to Innovation. In: Shavinina, L. V. (Ed.), The International Handbook on Innovation. Elsevier Science, Oxford
Hallberg, K. (2000) ‘A market-oriented strategy for small and medium scale enterprises’, International Finance Corporation Discussion Paper No. 40. The World Bank, Washington D.C. (available online at ifcln1.ifc.org/ifcext/economics.nsf/AttachmentsByTitle/dp40/$FILE/dp40.pdf; accessed January 30, 2009).
Hoffman, K., Parejo, M., Bessant,J., Perren, L., (1998). Small Firms, R&D, technology and innovation in the UK: a literature review. Technovation 18(1), 39-55.
Keizer J. A., Vos J.-P., Halman J. I. M., 2005. Risks in new product development: devising a reference tool. R&D Management Vol 35, No. 3.
Keizer, J. A., Dijkstra, L, Halman, J. I. M. (2002). Explaining innovative efforts of SMEs. An exploratory survey among SMEs in the mechanical and electrical engineering sector in The Netherlands. Technovation 22 (1) pp 1–13.
Kuan, K.K.Y., Chau, P.Y.K., (2001). A perception-based model for EDI adoption in small business using a technology–organization–environment framework. Information and Management 38,507–521.
Little, I. M. D., D. Mazumdar, and J. M. Page, Jr. (1987). Small Manufacturing Enterprises: A Comparative Analysis of India and Other Economies. New York, N.Y.: Oxford University Press.
Manufacturers Association of Nigeria (MAN) (2007). MAN Members‘ Directory (http://www.manufacturersnigeria.org/) accessed July/August, 2007
Organisation for Economic Cooperation and Development (OECD), 1992. Proposed Guidelines for Collecting and Interpreting Technological Innovation Data. Oslo Manual, 1st ed. Paris. --------- (2005). Proposed guidelines for collecting and interpreting technological innovation data: Oslo Manual, 3rd ed. OECD. Paris.
Polcuch, E. F., Lugones, G. and Peirano, F. (2005). Innovation in Developing Countries: Characteristics and Measurement Priorities In: Micheline Goedhuys (ed.). Technology Policy Briefs, Vol. 4 Issue 1, 2005. United Nations University, Netherlands.
Oyefuga, I.O., Siyanbola, W.O., Afolabi, O.O., Dada, A.D. and Egbetokun, A.A. (2008). ‘SMEs funding: an assessment of an intervention scheme in Nigeria’, World Review of Entrepreneurship, Management and Sustainable Development, Vol. 4, Nos. 2/3, pp.233–245.
Oyelaran-Oyeyinka, B., Laditan, G. O. A. and Esubiyi, A. O. (1996). Industrial innovation in Sub-Saharan Africa: the manufacturing sector in Nigeria. Research Policy 25 (7), 1081-1096
Patel, P. and Pavitt, K. (2005), ‗Patterns of Technological Activity: their Measurement and Interpretation‘. In: Stoneman, P. (ed.), Economics of Innovation and Technological Change Handbook. Oxford: Blackwell Publishers Ltd. pp. 182-264.
Pavitt, K., (1985). Patent statistics as indicators of innovation activities. Scientometrics 7, 77–99.
Popadiuk, S. and Choo, C. W. (2006). Innovation and knowledge creation: How are these concepts related? International Journal of Information Management 26 (2006) 302–312.
Ramachandran, V. (2002) ‘An assessment of the private sector in Nigeria’, Regional Program on Enterprise Development, Africa Private Sector Department, Small and Medium Enterprise Department, The World Bank Group, Available at www1.worldbank.org/documents/ICA005.pdf, accessed May 5, 2006.
Romijn, H. and Albaladejo, M. (2002). Determinants of innovation capability in small electronics and software firms in southeast England. Research Policy 31 (2002) 1053–1067.
Rosa, J. and Mohnen, M (2008). Knowledge Transfers between Canadian Business Enterprises and Universities: Does Distance Matter? UNU-MERIT Working Paper # 2008-17. Available at http://www.merit.unu.edu/publications/wppdf/2008/wp2008-017.pdf (Accessed March 21, 2008).
Souitaris, V. (2003). Determinants of technological innovation: Current state of the art, modern research trends and future prospects. In: Shavinina L. V. (ed.), The International Handbook on Innovation. Elsevier Science, Oxford
Srholec, M (2008). A multilevel analysis of innovation in developing countries. UNU-MERIT Working Paper Series #2008-040 (available online at http://www.merit.unu.edu/publications/wppdf/2008/wp2008-040.pdf; accessed 6 June, 2008) .
Tidd J., Bessant J., Pavitt, K. (2005). Managing Innovation: Integrating Technological, Market, and Organizational Change, 3rd ed, John Wiley and Sons, Chichester, England
Tushman, M. L. and Anderson, P. (1986). Technological discontinuities and organizational environments. Administrative Science Quarterly 31, 439–466.
United Nations University Institute for New Technologies (UNU-INTECH) (2004). Designing a Policy-Relevant Innovation Survey for NEPAD, mimeo: A Study prepared by UNU-INTECH, Maastricht, The Netherlands.
University of Cambridge (1992) The State of British Enterprises: Growth, Innovation and Competitive Advantage in Small and medium-Sized firms, Small Business Centre.
Urata, S. and Kawai, H (2001). Technological Progress by Small and Medium Firms in Japan. Paper prepared for the project on the Role of Small & Medium Enterprises in East Asia. World Bank Institute Stock No. 37193 (available online at siteresources.worldbank.org/WBI/Resources/wbi37193.pdf)
US Small Business Administration (2009). Size Standars in: FAQs: Frequently Asked Questions (retrieved from http://web.sba.gov/faqs/faqIndexAll.cfm?areaid=15; March 2, 2009).
Uvaliyev, R. (2006). Product Innovation in Finnish Software Companies. HANKEN – Swedish School of Economics and Business Administration Master’s Thesis in Advanced Financial Information Systems (available online at www.pafis.shh.fi/graduates/rusuva04.pdf; accessed April 14, 2007).
Available Versions of this Item
- The types and intensity of innovation in developing-country SMEs: evidences from a Nigerian sub-sectoral study. (deposited 27. Sep 2010 17:21) [Currently Displayed]