ANALYSIS OF FACTORS AFFECTING TECHNOLOGICAL INNOVATIVENESS IN ENGINEERING ENTERPRISES IN TANZANIA

Abstract

This paper discusses the technological innovativeness in engineering enterprises in
Tanzania and analyses the factors affecting the innovativeness. It starts by analyzing
various concepts regarding innovation, then analyzed from documentary review factors
affecting innovativeness and then analyzed the innovativeness in Tanzanian enterprises.
From the documentary review it was learnt that the following key factors influence
technological innovativeness: Existence of innovation management; Existence of market to
absorb the products of innovation; Existence of partnership between the universities and
the firms; Existence of positive culture and politics towards innovation; The government
playing its role to influence innovation; Existence of the right knowledge; and Ability of the
enterprises to access to financing institutions that support innovation.The research shows
that there is hardly any fundamental innovation in Tanzania, what is presented as
innovation is the copying of technologies and manufacture them using local material. The
researcher established the following factors affecting the innovativeness of engineering
enterprises in Tanzania: Level of education among the entrepreneurs in engineering
enterprises; financing for the enterprises in Tanzania; partnership with R&D institutions;
innovativeness culture; and market for Tanzanian products.