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August 16, 2025South Asian Journal of Social Studies and Economics

Understanding Innovation without R&D (Informal Innovation) and SME Performance in Rwanda: An Econometric Case Study

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Authors

SMStanley MukasaCarnegie Mellon University AfricaNDNgobi DennisAfrican Institute for Mathematical SciencesEEEmmanuel EkosseKigali Independent University

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Implication

Econometric analysis reveals no significant sales improvements for non-R&D innovation in SMEs, suggesting a need for supportive capabilities.

Key Points

  • Informal innovation does not significantly enhance firm performance, indicating limitations without proper capabilities.
  • Only exporting SMEs see slight benefits from informal innovation, highlighting the importance of market connections.
  • Analysis of World Bank Enterprise Survey data reveals distributional heterogeneity in performance outcomes among SMEs.
  • Policy should focus on enhancing absorptive capacity to better support grassroots innovators for scaling.

Cite This Study

Mukasa et al. (2025) studied this question.

synapsesocial.com/papers/68af540fad7bf08b1eadafb6https://doi.org/10.9734/sajsse/2025/v22i81129
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Influence of Innovation on Performance of Small and Medium-Sized Enterprises in Kinshasa City2026
  2. 2Impact of Knowledge Management Strategies on Innovation Performance in Small and Medium Enterprises (SMEs) in Rwanda2024 · 2 citations
  3. 3Dealing with adversity: innovation among small and medium-sized enterprises in developing economies2024 · 21 citations
  4. 4Innovation and Firm Growth: Evidence from an Emerging Economy2026 · 3 citations
  5. 5Effects of Innovation on Business Performance: Empirical Evidence from Manufacturing Firms in Tanzania2024