Unlocking Firm Level Productivity and Promoting More Inclusive Growth
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World Bank, Washington, DC
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Rapid and consistent economic growth of
Ethiopia over the past decade has contributed to reducing
the number of people living in poverty. The Government of
Ethiopia has created the growth and transformation plan
(GTP), focusing on two overarching themes: fostering
competitiveness and employment, and enhancing resilience and
reducing vulnerabilities. This plan recognizes that for
poverty reduction and economic growth to be sustainable, the
Ethiopian economic structure will have to undergo a
fundamental transformation. In accordance with a focus on
poverty reduction and economic growth, the GTP has
identified five main levers for change: public sector
investment in infrastructure to lay the ground for private
sector development, enhancement of policies and regulations
to provide an environment conducive to competitiveness and
productivity, expanding access to credit for small and
medium size enterprises, provision of training and education
to augment the supply of skilled labor, and improved access
to land. Technological adoption and innovation will play a
crucial role in delivering the goals laid out in the GTP.
Participation in foreign markets also induces firms to
become more innovative, a phenomenon known as learning
through exporting, as observed among Ethiopian leather
exporters. Another vital determinant of innovative activity
is the accumulation of human capital and the skill level of
the workforce. This study seeks: (i) to empirically analyze
the extent of innovative activities that formal firms are
undertaking in Ethiopia; (ii) to conduct a review of the
existing innovation landscape; and (iii) to identify
opportunities to foster innovations at the base of the
pyramid (BoP) in Ethiopia. This study is structured as
follows: chapter one gives introduction. Chapter two
provides a detailed overview of the characteristics of
growth and innovation, by providing key insights based on
the enterprise survey analysis on the characteristics,
motivations, operational and market environment and
constraints of the innovators in Ethiopia. Chapter three
assesses the innovation landscape in Ethiopia, by looking at
the governmental and private agencies responsible to promote
innovation, as well as active programs, and donor
initiatives which may play a role in promoting firm level
and pro-poor innovations. Chapter four provides policy
recommendations to promote innovation in Ethiopia both at
the firm level and in the form of pro-poor initiatives.
Palabras clave
COMPUTER LITERACY, COORDINATION MECHANISM, FINANCIAL SERVICES, ENVIRONMENT FOR INNOVATION, EQUIPMENT, ENTERPRISE DEVELOPMENT, FINANCIAL INVESTMENT, CUSTOMER, GLOBAL MARKETS, MATERIALS, GLOBAL KNOWLEDGE, SEARCH, POLICY FRAMEWORK, GOVERNMENT FUNDING, ENTERPRISE SURVEY, MEDIUM ENTERPRISES, MONITORING, MEDIUM ENTERPRISE, CAPACITY BUILDING, PRICE, JOINT VENTURES, MANAGEMENT SYSTEMS, MARKET ACCESS, INFORMATION SYSTEMS, TRADITIONAL BUSINESS, PRODUCT DEVELOPMENT, BUSINESS PROCESS, COMPUTER, COMMUNICATIONS, HUMAN RESOURCE, DATA, ADVERTISING, TECHNICAL ASSISTANCE, COMMERCE, PERFORMANCE INDICATORS, DOMAIN, BUDGET ALLOCATION, TARGETS, MARKET DEMANDS, AFFORDABLE ACCESS, FINANCIAL INSTITUTIONS, BUYERS, CONSULTANT, STANDARDIZATION, ACTION PLAN, MATERIAL, INTERNATIONAL COMPETITION, NETWORK SYSTEMS, ELECTRONIC PAYMENTS, NATURAL RESOURCES, EMPLOYMENT CREATION, CAPITAL INVESTMENTS, IMPLEMENTATION STRATEGY, INTERNATIONAL STANDARDS, R&D, BUSINESS PROCESSES, HUMAN CAPITAL, INSPECTION, PROCUREMENT, BUSINESS DEVELOPMENT SERVICES, INTERNATIONAL TRADE, INNOVATION POLICIES, SOFTWARE, BEST PRACTICES, ORGANIZATIONAL INNOVATION, BUSINESS DEVELOPMENT, MOBILE PHONE, COMPETITIVENESS, FOREIGN DIRECT INVESTMENT, ELECTRICITY, FOREIGN INVESTMENT, EXPORT DEVELOPMENT, NETWORKS, BEST PRACTICE, E-BOOKS, PRIVATE SECTOR, SUPPLY CHAIN, INVENTION, RESULT, GOVERNMENT POLICIES, INNOVATION POLICY, ECONOMIC DEVELOPMENT, INPUT PROVIDERS, ICT, SUPPLY CHAINS, INTELLECTUAL PROPERTY SYSTEM, TECHNOLOGY TRANSFER, TECHNOLOGY INFRASTRUCTURE, BUSINESS, BUSINESSES, PHONES, ACCESS TO TECHNOLOGIES, COMMERCIAL BANKS, ELECTRONIC PAYMENT, ACCESS TO SERVICES, ACTION PLANS, BROADBAND CONNECTIONS, PERFORMANCE, BUSINESS ENVIRONMENT, COMPETITIVE ADVANTAGE, COMPETITIVE PRICES, PRODUCT INNOVATION, POLICY SUPPORT, INSTITUTION, SITES, FINANCIAL SUPPORT, DECISION MAKING PROCESS, CHAMBER OF COMMERCE, COMMUNICATION, PRIVATE PARTNERSHIPS, INFRARED, NEW TECHNOLOGY, SUPPLY CHAIN MANAGEMENT, TURNOVER RATES, POLICY FORMULATION, TECH SUPPORT, COMMODITIES, COMMUNICATION STRATEGY, CAPITAL INVESTMENT, PAYMENT SYSTEMS, SOCIAL ENTERPRISE, REGULATORY FRAMEWORK, PRIVATE PARTNERSHIP, INFORMATION TECHNOLOGY, GLOBAL COMPETITIVENESS, BUYER, MARKET OPPORTUNITY, CAPABILITY, VALUE CHAIN, PAYMENT SYSTEM, INFORMATION, INFRASTRUCTURE DEVELOPMENT, LEGAL ASSISTANCE, ENTERPRISE SURVEYS, PRIVATE SECTOR FIRMS, DISTRIBUTION CHANNELS, TECHNOLOGICAL INNOVATION, BUSINESS MODELS, ENTREPRENEURIAL SKILLS, FOREIGN INVESTMENTS, ENABLING ENVIRONMENT, SATELLITE, HARDWARE, NEW TECHNOLOGIES, INSTITUTIONS, LINK, HUMAN RESOURCE DEVELOPMENT, ELECTRONICS INDUSTRY, COMPUTERS, NECESSARY SKILLS, TELECOMMUNICATIONS, EXPORT EARNINGS, ELECTRONIC TRANSFER, MANUFACTURING INDUSTRY, PRODUCTIVITY, MARKETING, LIMITED ACCESS, PRIVATE INVESTMENT, LINKS, PRIVATE SECTOR DEVELOPMENT, SOCIAL DEVELOPMENT, EXPORT MARKET, BROADBAND, PROCUREMENT PROCESSES, CAPABILITIES, ACCESS TO INFORMATION, MANUFACTURING, USERS, PHONE, TECHNOLOGY, TRANSACTION, RELIABILITY, PRODUCT INNOVATIONS, RESULTS, RESEARCH INFRASTRUCTURE, GLOBAL SUPPLY CHAINS, EXPORT PROMOTION, BUSINESS DEVELOPMENT SERVICE, MARKET SHARE, LICENSES, SECURITY, BUSINESS SECTOR, NETWORK, ID, BIOTECHNOLOGY, HUMAN RESOURCES, TELECOM, INNOVATION, ECONOMIC ACTIVITIES, MOBILE PHONES, PROFIT, INTELLECTUAL PROPERTY, BUSINESS REGULATIONS, BUSINESS MODEL, INSTITUTIONAL FRAMEWORK, CUSTOMERS, DATABASE, PROFITS, COMMUNICATIONS TECHNOLOGY, SOCIAL ISSUES, TECHNOLOGIES, TARGET, PRICES, INNOVATIONS, TECHNICAL STANDARDS, PRODUCTION PROCESSES