Table of Contents

Innovation and Small Enterprises in the Third World

Innovation and Small Enterprises in the Third World

New Horizons in the Economics of Innovation series

Edited by Meine Pieter van Dijk and Henry Sandee

Innovation is crucial for small enterprises to become and remain competitive in the global economy. In this book, the authors have combined theoretical insights with comprehensive case studies on innovation among small-scale enterprises in developing countries, paying particular attention to technological change in clusters of small firms.

Chapter 14: Enterprise Co-operation, Technology Partnerships and S & T Policies for the Promotion of Innovation for SMEs

Meine Pieter van Dijk

Subjects: development studies, development economics, economics and finance, development economics

Extract

Chapter 14 15/3/02 8:54 am Page 3 14. Enterprise co-operation, technology partnerships and S&T policies for the promotion of innovation for SMEs Meine Pieter van Dijk Different case studies in this book have shown that local technological development is important for promotion of innovation for SMEs. The local adaptation capacity should be developed further. Governments and donor organizations should go from an approach stressing the transfer of technology to one stressing the development of such a local capacity to develop and adapt technology, possibly with assistance provided in the framework of development co-operation. Private firms would be the major actor, besides universities and local research and development organizations. They have most of the technical and practical skills available in the country. Large-scale and multinational companies can also play a role, in particular in the case of strategic alliances focusing on producing locally internationally competitive products.1 UNCTAD (1998) also stresses the importance of interfirm agreements to enable firms to meet the challenges of the new international competitive environment. In this chapter we will take a development perspective: how to stimulate the development of local technological capability to help the development of small and medium enterprises in developing countries. Different types of enterprise co-operation were analysed in the previous chapters. In Chapter 6 they ranged for example from co-operation between large international and small and medium local enterprises in Zimbabwe to co-operation between small enterprises in Ghana and Burkina Faso. Also examples of science and technology (S&T) policies to...

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