Factors Affecting Engagement and Commercialization Of Innovation Activities of Firms in Tanzania

Abstract

This paper analyses the commercialization of innovations in Tanzania, using firm level data. Specifically, it assesses the relative importance of firm, innovation and environmental level factors in commercialization, and how innovation is linked with commercialization. The analysis reveals that firm investment in internal research and development significantly impact both product innovation and commercialization of innovations in Tanzania, implying internal knowledge base is the main link between innovation and commercialization of innovations. Commercialization of innovations in Tanzania is influenced by cooperation with domestic and foreign firms, investment in research and development, and purchase of intangible technology with cooperation with domestic firms having the largest impact on commercialization, followed by investment in research and development. Knowledge acquisition and firm cooperation with other firms have greater impact on commercialization when undertaken by firms with histories of doing so in the past than when undertaken by firms for the first time.