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

Abiodun Egbetokun, A.A. Adeniyi, W.O. Siyanbola and O.O. Olamade

International Journal of Learning and Intellectual Capital, 2012, vol. 9, issue 1/2, 98-112

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 four-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.

Keywords: cable manufacturers; wire manufacturers; manufacturing subsectors; small and medium-sized enterprises; SMEs; innovation intensity; Nigeria; subsectoral studies; policy making; developing countries; organisational innovation; diffusion-based innovation; training investment; process innovation; marketing innovation; capability build-up; learning; intellectual capital; innovation types. (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Working Paper: The types and intensity of innovation in developing-country SMEs: evidences from a Nigerian sub-sectoral study (2009)
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