Are small, medium- and micro-sized enterprises engines of innovation?: the reality in South Africa
SOURCE: Science and Public Policy
OUTPUT TYPE: Journal Article
PUBLICATION YEAR: 2011
TITLE AUTHOR(S): I.Booyens
KEYWORDS: INNOVATION, SMALL MEDIUM AND MICRO ENTERPRISES
Print: HSRC Library: shelf number 6635
HANDLE: 20.500.11910/3980
URI: http://hdl.handle.net/20.500.11910/3980
OUTPUT TYPE: Journal Article
PUBLICATION YEAR: 2011
TITLE AUTHOR(S): I.Booyens
KEYWORDS: INNOVATION, SMALL MEDIUM AND MICRO ENTERPRISES
Print: HSRC Library: shelf number 6635
HANDLE: 20.500.11910/3980
URI: http://hdl.handle.net/20.500.11910/3980
If you would like to obtain a copy of this Research Output, please contact Hanlie Baudin at researchoutputs@hsrc.ac.za.
Abstract
This paper examines the relationship between innovation activity and firm size in the South African context. Based on data from the National Innovation Survey (2002-2004) the paper looks in particular at the nature of innovation by small, medium and micro-sized enterprises (SMMEs). The main finding is that the innovation rate of SMMEs is relatively high, with small enterprises reporting the highest innovation rate. A limited dependent variable regression, however, determines a negative statistically significant relationship between the probability to innovate and firm size. SMMEs are therefore not more innovative than large enterprises in South Africa. This paper identifies innovative entrepreneurs and micro enterprises as important foci for entrepreneurship and innovation policy.-
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