Analysing the Relationship between Innovation and Productivity: A Case Study of Senegalese Manufacturing Industries
African Economic Research Consortium
The objective of this study was to profile innovative companies and to examine the link between innovation and productivity in manufacturing firms in Senegal. It took into account the interaction between various forms of innovation. Using a descriptive analysis of variance (ANOVA) approach and multivariate regression, the study found that although Senegal had a satisfactory level of technology adoption, an innovation deficit remained in the industrial sector, notably in research and development (R&D) activities. The study established that larger enterprises and firms that export their products are the most innovative. However, no significant relationship was found between the gender of the manager of the firm and the adoption of various forms of innovation. Furthermore, our results demonstrate that the choice to adopt innovation in an organization is positively related to improved labour productivity. In regard to the other types of innovation, no association was found. Our results suggest the need to develop strategies that integrate innovation in industrial policy in order to facilitate its adoption. They also suggest the need to undertake regular surveys of innovation in firms so as to better understand market trends, identify their strengths and weaknesses and facilitate decision making in terms of innovation.