Barriers to Innovation in Indian Small and Medium-Sized Enterprises

Anshul Pachouri and Sankalp Sharma
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Anshul Pachouri: Asian Development Bank Institute
Sankalp Sharma: Asian Development Bank Institute

No 588, ADBI Working Papers from Asian Development Bank Institute

Abstract: Innovation plays a critical role in shaping the industrial and firm competitiveness of any nation. Innovation is often discussed in the setting of developed countries, but the rise of emerging economies such as India has generated a new interest in understanding innovation in developing economies. This paper aims to study and present the current state of innovation in small and medium-sized enterprises (SMEs) in India. The focus of the paper is to bring out the key barriers SMEs face in the innovation process in the context of the existing government policy. India, being a developing nation, has its own set of unique situations and challenges that impede the innovation potential of SMEs operating in it. Many of these barriers are related to public policy, funding constraints, shortage of skilled research and development (R&D) workforce, and weak linkages between institutions and the firms, among others.

Keywords: SME innovation; innovation policy framework; public policy barriers; innovation potential (search for similar items in EconPapers)
JEL-codes: G20 G28 O38 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2016-09-22
New Economics Papers: this item is included in nep-cse, nep-ent, nep-ino, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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