A simulation-based approach for assessing the innovation barriers in the manufacturing firms

Abstract

One of the most important challenges organisations’ faces to innovate is dealing with different types of barriers. Particularly, the case of manufacturing firms confronts several barriers, such as demand uncertainty, product imitation, lack of employees, scarcity of government funding, absence of internal and external financing. This paper aims to provide new insights regarding to the innovation barriers faced by the manufacturing firms. To do this, we implemented a computational model for analysing the barriers to innovation in the Colombian case. In this model, product and processes innovation are studied. It was concluded that for the innovation of process, the highly important barrier is the shortcoming of internal financing, while for the innovation of product is the lack of employees. Results show that the government expenditure is scarce compared to private and external investment.