Effect of Determinants of Entrepreneurial Innovation on Businesses Innovation Capacity in Sub-Saharan Africa

Odhiambo Norbert Omuga, Robert Moracha Ogeto and Xiongying Niu
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Odhiambo Norbert Omuga: Business school, University of International Business and Economics, Chaoyang District, Beijing, P.R. China
Robert Moracha Ogeto: Business school, University of International Business and Economics, Chaoyang District, Beijing, P.R. China
Xiongying Niu: Business school, University of International Business and Economics, Chaoyang District, Beijing, P.R. China

International Journal of Science and Business, 2021, vol. 5, issue 5, 8-21

Abstract: Global and local challenges and changes in the structure of knowledge production and usage, have led to very many different types of innovations. Thus, recognizing and classifying such innovations is more complex, fragmented, and geographically dispersed academic and social venture. This study provides a quantitative longitudinal study of the determinants of innovation, their role in entrepreneurship innovation capacity and how they collectively add value to economic growth in sub-Saharan Africa. The study used fixed effects with country dummies in the analysis where Stata software was used. The results generated are expected to use in enabling both other researchers and practitioners to navigate the complex web of innovation definitions and typologies and they collectively impact on economic growth in the poor world. The results indicated that the extent of staff training, brain drain, absence of excessive bureaucracy and red tape, intellectual property protection, venture capital availability and intensity of local competition among firms were positively and significantly correlated with entrepreneurial innovation capacity in SSA. On the other hand, government procurement of advanced technologies was negatively and significantly correlated with entrepreneurial innovation capacity in SSA. It is recommended that respective countries should put in mechanisms to capitalize from the positive benefits of brain drain, absence of excessive bureaucracy and red tape, venture capital availability, intensity of local competition among firms and tertiary education gross enrolment on the economy. This could be through increased investments in tertiary institutions and reduction of bureaucracy and corruption that will not only increase high quality production through increased labour productivity, but will also foster fair competition in the markets. The governments should also increase mechanisms that facilitate increased savings for investment and where possible adopt strategies that will encourage increased inflow of foreign direct investment.

Keywords: Innovation Capacity; Entrepreneurial Innovation; FDI; Labour Force Participation Rate; Red Tape; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2021
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