Facilitating Innovation in Developing Countries: Challenges and Choices

  • Freddy J Gamba

Abstract

This paper analyses the facilitative factors of nurturing innovation in developing economies. The paper is developed solely from literature and it defines innovation in various conceptualizations from both developed and developing world, and their underlying assumptions. It aims at highlighting the challenges and key policy choices for innovation. The findings lead to the conclusion that, though incremental innovation can be easily managed in developing countries, it can spray vast innovations if right policy choices of innovation options are done. These include choices of marketing, service and organizational innovations; social capital for interactive relations and diversity management; improved education systems; crafting of innovation systems; increased gross domestic expenditure on research and development (GERD); and promoting the role of various innovation actors in the dissemination of knowledge and R&D results. Increased GERD have facilitated generation of innovations and improved economies for many countries such as South Africa and Brazil. Further, in a contextual understanding and analysis, this paper affirms the paradigm shift from ‗system of production‘ to the ‗system of innovation‘, and it opposes the paradigm shift from ‗traditional‘ to ‗high tech‘ sectoral engagements.

References

Armbruster, H., A. Bikfalvi, S. Kinkel, & G. Lay, (2008), ―Organizational Innovation: the Challenge of Measuring Non-Technical Innovation in Large-Scale Surveys,‖Technovation, 28: 644–657

Bates, R.A. & E.F. Holton, (1995), Computerized work performance monitoring: A review of human resource issues. Human Resource Management Review, Volume 5, Number 4,Winter 1995, 267–288 (22)

Bell, R & K. Pavitt, (1993), ―Technological Accumulation and Industrial Growth: Contrasts Between Development and Development and Developing Countries,‖ Industrial and Corporate Change, 2(2): 157–210

Brumbach, G.B., (1998), ―Some Ideas, Issues and Predictions About Performance Management,‖Public Personnel Management, Winter: 387–402.

Champy, J. & M. Hammer, (2001), Reengineering the Corporation: A Manifesto for Business
Revolution, 3rd Edition, Nicholas Brealey Publishing.

Cimoli, M., (2000), Developing Innovation Systems: Mexico in A Global Context, London/New York:
Continuum.

Coriat, B & G. Dosi, (1998), The Institutional Embeddeness of Economic Change: An Appraisal of Evolutionary‘ and ‗Regulationist‘ Research Programmes. IIASA Working Paper, WP-95-117, November.

Coriat, B., (2001), ―Organizational Innovation in European Firms: A Critical Overview of the Survey Evidence,‖ In: D. Archibugi & B. Lundvall, (eds.), The Globalizing Learning Economy. Oxford/New York: Oxford University Press.

Department for Business Innovation Systems (DBIS), (2014), Innovation Report 2014: Innovation, Research and Growth, Department for Business Innovation, UK

Diyamett, B., (2004), ―The Concept of Technological Innovation: Theoretical Overview and Some practical Implications for Africa,‖ Proceedings of the Regional Conference on Innovation Systems and
Innovative Clusters in Africa, Bagamoyo, Tanzania

Department of Science and Technology (DST),(2004), National Survey of Research and Experimental Development (R & D) 2001/02: High Level Key Results, Pretoria: Department of Science and Technology.

Edquist, C., (1997), System of Innovation Technologies,Institutions and Organizations, London and
Washington: W.W. Norton.

—, C., (2005), ―Systems of Innovation: Perspectives and Challenges,” In J. Fagerberg, D. Mowery,
& R. Nelson, (eds.), Oxford Handbook of Innovation, Oxford: Oxford University Press.

Ernst, D., T. Ganiatsos & L. Mytelka, (1998),Technological Capability and Export Success in Asia,
London: Routledge.

Freeman, C., (1987), Technology Policy and Economic Performance: Lessons From Japan, London:
Frances Printers
Freeman, C. & L. Soete, (1997), The Economic and Industrial Innovation, London and Washington:
Pinter.

Fukuyama, F., (2001), ―Social Capital and Civil Society,‖ International Monetary Fund Working Paper WP/00/74.24

Global Innovation Index, (GII), (2016), ―Winning WithGlobal Innovation,http://www.wipo. int/
publications/en (Accessed on 2nd January, 2017)

—, (2015), ―Effective Innovation Policies for Development, http://www.wipo.int/publications/en (Accessed on 02.01.2017).

—, (2014), ―the Human Factor in Innovation,http:// www. wipo. int/ publications/ en (Accessed on 02.01.2017).

—, (2013), ―the Local Dynamics of Innovation,http:// www. wipo. int/ publications/en(Accessed on 02.01.2017).

—, (2012), ―Stronger Innovation Linkages for Global Growth, http://www.wipo.int/publications/en
(Accessed on 02.01.2017).

—, (2011) Accelerating Growth and Development,http:// www. wipo. int/ publications/ en (Accessed on 02.01.2017).

Goldsmith, A., (2002), ―Business Associations and Better Governance in Africa,‖ Public Administration Development, 22: 39–49.

Hertog, P. D., R. Bilderbeek, G. Marklund & I.Miles, (1998), Services in Innovation: Knowledge Intensive Business Services (KIBS) as Co-Producers of Innovation, SI4S Synthesis, Paper No. 3, Published by STEP, Oslo.

Johnson, B & B. Lundval, (2003) Economic Development and the National System of Innovation Approach, Conferência Internacional Sobre Sistemas De Inovação E Estratégias De Desenvolvimento Para O TerceiroMilênio• November.

Kaplan, R. & D. Norton, (1992), ―The Balanced Scorecard: Measures that Drive Performance,‖
Harvard Business Review, (Jan-Feb): 71–79.

Kaplinsky, R & J. Readman, (2000),―Globalization and Upgrading: What Can (and Cannot) Be Learnt From International Trade Statistics in the Wood Furniture Sector?‖Mimeo, Brighton, Centre for Research in Innovation Management, University of Brighton and Institute of Development Studies,University of Sussex., www. centrim. bus.brighton.ac.uk/go/global/.

Kaplinsky, R & M. Morris, (2001), A Handbook for Value Chain Research, www.ids.ac/global and
www.nu.ac.za/csds, IDS Research Report (Accessed on 15 December 2016)

Kaplinsky, R., M. Morris & J. Readman, (2001), Globalization and Upgrading: Innovation and Learning in the Wood Furniture Value Chain,‖Background Paper for UNIDO World Industrial Development Report, 1992, Brighton: Institute of Development Studies, University of
Sussex.

Kappel, R., U. Dornberger, M. Meier & U. Rietdorf, (2003), ―Klein Und Mittelunternehmen
in Entwicklungslaendern: Die Herausforderungen Der Globalisierung,‖Nummer 58, DUEI, Hamburg.

Karol Śledzik, (2013), ―Schumpeter‘s View on Innovation and Entrepreneurship Trends in
Theory and Practice,‖ Available at SSRN: http:// dx.doi.org/ 10.2139/ ssrn.2257783 (accessed 30.12.2016).

Kim, L., (1997), Initiation to Innovation: The Dynamic of Korea’s Technological Learning, Boston:
Harvard Business School Press.

Knack, S. & P. Keefer, (1997), ―Does Social Capital Have an Economic Payoff? A Cross-Country
Investigation,‖ Quarterly Journal of Economics, 112 (4): 1251–88

Lall, S. & C. Pietrobelli, (2003), Manufacturing in Sub-Saharan Africa and the Need of a National
Technology System, In: M. Muchie, B.A Lundvall and P. Gammeltolf (eds.), The Making
of African Innovation Systems, Aalborg University Press.

Lundval, B., (1992), National Innovation System: Towards a Theory of Innovation and Interactive
Learning, London: Frances Printers.

—, (2005), National Innovation Systems -Analytical Concept and Development Tool.DRUID Tenth Anniversary Summer Conference on Dynamics of Industry and Innovation: Organizations, Networks and
Systems Copenhagen, Denmark, June Social Capital’s Integrative and Facilitative Role in Organizations

Martin, B., (2016), ―Twenty Challenges for Innovation: The Future of Innovation Studies,Sci Public Policy, 43 (3): 432–450.

Mashelkar, A., (2005), ―National Building Through Science and Technology: A Developing World
Perspective,‖ Innovation Strategy Today, 1(1): 16–32.

Murphy, J., (2002), ―Networks, Trust, and Innovation in Tanzania‘s Manufacturing Sector,‖ World Development,30 (4): 591–619.

Mwamila, B & H. Katalambula., (2004),University-Industry Linkage: the Case of the prospective College of Engineering and Technology at the University of Dar es Salaam.Proceedings of the Regional Conference on Innovation Systems and Innovative Clusters in Africa, Bagamoyo, Tanzania.

Mytelka, L., (2004), ―From Clusters to Innovation Systems in Traditional Industries- the role of vision, knowledge and Policy,‖ Proceedings of the Regional Conference on Innovation Systems
and Innovative Clusters in Africa, Bagamoyo, Tanzania.

Navdi, K & H. Schmitz, (1994), Industrial Cluster in Less Developed Countries: Review of Experiences and Research Agenda. IDS Discussion Paper No. 339. Brighton Institute of Development Studies. Brighton.

Nelson, R., (1993), National Innovation Systems: A Comparative Analysis, New York and Oxford:Oxford university Press.

Organisation for Economic Co-operation and Development (OECD), (1997), The Measurement of Scientific and Technological Activities; Proposed Guidelines for Collecting and Interpreting
Technological Innovations (Olso Manual) At www.oecd.org (Accessed on 4thDecember, 2016)

—, (2005), The Measurement of Scientific and Technological Activities: Guidelines for Collecting and
Interpreting Innovation Data,Oslo Manual, Third Edition, At www.oecd.org (Accessed on 4
thDecember, 2016)

—, (2007), Innovation and Growth: Rationale for an Innovation Strategy. At www.oecd.org
(Accessed on 4thDecember, 2016)

—, (2012), Innovation for Development: A Discussion of the Issues and an Overview of
Work of the OECD Directorate for Science, Technology and Industry. At www.oecd.org
(Accessed on 4thDecember, 2016)

OECD & Eurostat, (2005),Oslo Manual––Guidelines for Collecting and Interpreting Innovation Data, Paris: OECD, www.oecd.org/sti/ frascatimanual/.(Accessed on 4thDecember, 2016)

Oyelaran, B., (1997), Nnewi: An Emergent Industrial Cluster in Ibadan, Technopol Publishers.

Shulia, G.U., (1999), Implication of National Innovation Systems for Developing Countries: Managing Change and Complexity in Economic Development, Maastricht: UNUINTECH.

Temple, J., (1998), ―Initial Conditions, Social Capital and Growth in Africa,‖ Journal of African
Economies, 7(3): 309–347.

University of Pretoria & Einhoven University of Technology, (2003), Industrial Innovation in South Africa: 1998–2000. University of Pretoria Press.

United Nations Conference on Trade and Development (UNCTAD), (1999), The Science,Technology and Innovation Policy Review, Geneva: United Nations.

Vinding A. L, (2001), Firms and Knowledge Institutions – The Innovation Potential in Low Tech Sectors and Small Firms, DRUID, Aalborg.

Warren, R. C., (2000), Corporate Governance and Accountability, Liverpool Academic Press.

Wengel, J., G. Lay, A. Nylund, L.Bager-Sjogren, P.Stoneman, N. Bellini, A. Bonaccorsi, P.

Shapira, (2000), ―Analysis of Empirical Surveys on Organizational Innovation and Lessons for
Future Community Innovation Surveys,‖ EIMS Publication No. 98/191, Karlsruhe.

Whittington, R., A. Pettigrew, S. Peck, E. Fenton,M. Conyon,1999. Change and Complementarities in the New Competitive Landscape: A European Panel Study, 1992–1996. Organization Science 10, 583–600

Wickham, P. A., (1998), Strategic Entrepreneurship: A Decision Making Approach to New Venture Creation and Management, London: Pittman.

Woolcock, M., (1998), ――Social Capital and Economic Development: Towards a Theoretical Synthesis and Policy Framework
Published
2017-09-20
How to Cite
GAMBA, Freddy J. Facilitating Innovation in Developing Countries: Challenges and Choices. The African Journal of Finance and Management, [S.l.], v. 26, n. 1, sep. 2017. ISSN 0856-6372. Available at: <http://journal.ifm.ac.tz/index.php/AJFM/article/view/362>. Date accessed: 16 dec. 2017.
Section
African Journal of Finance and Management