Abstract
The main objectives of this paper are: (i) determining the factors that support Rwandese manufacturing firms’ engagement in innovative activities; (ii) assessing the effects of innovation decisions on innovation performance of Rwandese manufacturing firms; and (iii) evaluating the impact of innovations on the financial performance of Rwandese manufacturing firms. To address these objectives, the study uses a structural multi-stage framework as proposed by Crépon et al. (Econ Innov New Technol 7(2):115–158 1998). The study uses data from the ‘World Bank Enterprise Survey: Rwanda 2006’ and draws three main conclusions: (i) product innovations are positively linked to process innovations, that is, firms which engage in process innovations also introduce new or improved products in the market; (ii) for innovation output, the ‘international quality recognition’ is not linked to a firm’s engagement with innovations; instead it is linked to the use of technology licensed from foreign firms; and (iii) ‘international quality recognition’ is the main determinant of a firm’s financial performance.
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Notes
- 1.
This is known as the CDM method referring to the initials of the authors’ names: Crepon, Duguet, and Mairesse.
- 2.
Series of standards defined and published by the International Organization of Standardization to maintain quality assurance by manufacturing and service firms.
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Ndemezo, E., Kayitana, C. (2020). Innovation and Firms’ Performance in the Rwandese Manufacturing Industry: A Firm-Level Empirical Analysis. In: Das, G., Johnson, R. (eds) Rwandan Economy at the Crossroads of Development. Frontiers in African Business Research. Springer, Singapore. https://doi.org/10.1007/978-981-15-5046-1_6
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