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Showing posts from May, 2012

Evolving thoughts on innovation, entrepreneurship and economic growth

Entrepreneurs create new businesses, and new businesses in turn create jobs. New businesses intensify competition for existing larger businesses. Increased competition forces small and large entreprises alike to innovate and be more efficient in creating value for customers. Efficient value creation results in a more productive economy hence economic growth. 
Arguably, many large entreprises in East Africa do not face much competition, enough to give research and development the priority place required for innovation to grow. Furthermore, many of the larger entreprises within East Africa are multinationals whose research and development initiatives are controlled by their parent entities abroad. Therefore innovation for such multinationals is more likely to target global markets and not local markets in developing countries where revenue streams are comparatively insignificant. The other significant proportion of large entreprises in East Africa is comprised of parastatals and governme…