ANALYSIS OF FACTORS AFFECTING TECHNOLOGICAL INNOVATIVENESS IN ENGINEERING ENTERPRISES IN TANZANIA

Abstract

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