Dynamics and Determinants of Innovation in the Non-R&D Scenario

Muhammad Nouman () and Saleem Gul
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Muhammad Nouman: Institute of Management Sciences, Peshawar
Saleem Gul: Institute of Management Sciences, Peshawar

Business & Economic Review, 2011, vol. 3, issue 1, 39-53

Abstract: R&D is considered to be the key determinant of innovation in any industrial sector. Evolution in innovation thought since Schumpeter's pioneering work during the 1930s and 40s has led us to shed this myopic view and recognize the influence of other factors. We contend that innovation, essentially non-linear in nature, can be observed in developing countries like Pakistan characterized by low-technology sectors that have zero or very low R&D intensity. However, little is known about this form of innovation which is influenced by its own peculiar set of context-driven factors. Applying a case study approach and using mixed methods, this paper presents insights on the dynamics and determinants of innovation in a non-R&D SME secotor. Findings reveal limited instances of incremental product and process innovation. A set of 87 factors are found that help explain lack of innovation in the industry. These factors have been collectively presented as 42 determinants categorized as being internal of external to a firm and across their micro-meso-macro origins. Future work emanating from this research will focus on enriching relevant research by seeking consensus around the most influential determinants of innovation in zero R&D scenarios in developing country contexts.

Keywords: R&D; evolution; Schumpeter; innovation (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:bec:imsber:v:3:y:2011:i:1:p:39-53

DOI: 10.22547/BER/3.1.3

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