Barriers to innovation: the case of Ghana and implications for developing countries

Frank L Bartels,Elisa Vitali,Ritin Koria

doi:10.1186/s40604-016-0040-y

Frank L Bartels, Elisa Vitali + Show 1 more

Open Access

https://doi.org/10.1186/s40604-016-0040-y

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Abstract

This paper analyses the barriers to innovation and innovativeness in the Ghana National System of Innovation (GNSI) in terms of the quadrilateral relationships between the following four actors: (a) government; (b) medium- and high-technology industries; (c) knowledge-based institutions; and (d) arbitrageurs (venture capital, finance capital and knowledge brokers). The paper contributes to research on systems of innovation in view of the wide recognition of the importance of National System of Innovation (NSI) for economic performance. The barriers to innovation in Ghana identified, through factor analysis, provide a framework to isolate systemic problems and enable policy makers to enhance effective policy delivery at the system level. This empowers the four actors to overcome the specific barriers to innovation and thus enabling the overall GNSI, through increased effectiveness and efficiency, to achieve higher levels of competitiveness. We find that barriers to innovation and innovativeness in Ghana factor significantly into the following: skills-Information and Communication Technology (ICT) capability/capacity; unsophisticated markets; deficient fiscal policy; and organisational risks.

Highlights

The significance to policy makers of the systemic approach for policy management of innovation as key to national development in the context of the knowledge-based economy is increasingly evident (Bartels et al 2012; Cooke and Leydesdorff 2006; Fagerberg et al 2010; Penrose 1959)
Analysing the medium- and hightech industries (MHTI) perspective, the main barrier to innovation in the Ghana National System of Innovation (GNSI) is “organisational risks” in which the “excessive perceived economic risk” is the most crucial variable, since the factor is responsible of 63 % of its variance
Policy recommendations to address deficiencies in “organisational capital” refer to the central role played concertedly by education, enterprise and management. This role, firstly, should be characterised by curricula reform that is recalibrated to the needs of MHTI

Summary

Introduction

The significance to policy makers of the systemic approach for policy management of innovation as key to national development in the context of the knowledge-based economy is increasingly evident (Bartels et al 2012; Cooke and Leydesdorff 2006; Fagerberg et al 2010; Penrose 1959). This paper targets policy makers and focuses on the systems of innovation approach It contributes to the current debate on NSI in developing countries in general and Ghana by providing a framework that identifies significant barriers to innovation empirically through factor analysis. It increases the awareness of these factors to enable policy makers to incentivise government, medium- and hightech industries (MHTI), knowledge-based institutions (KBIs) and arbitrageurs to meet higher resolution standards by innovating, adopting new technology and changing their behavioural patterns with respect to connectedness. As for all respondents, “unsophisticated markets” is the second highest barrier to innovation accounting for 14.152 % of TVE and influences the policy variables “lack of demanding

Organisational Risks

Unsophisticated Markets *

Findings

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