Some views on determinants of innovative outcomes of South African firms : an exploratory analysis using firm-level data

We report on an attempt to identify the major determinants of innovation in manufacturing and non-manufacturing firms in South Africa. Results are reported using data collected within the framework of the South African Innovation Survey of 2001. This theory based exploratory, empirical research shows that innovative outcomes are influenced by the extent to which firms have internal knowledge resources and use internal and external knowledge and information sources. However, results differ for sub-samples. Incremental and non-manufacturing innovators are imitators, whereas radical and manufacturing innovators profit from their internal sources only.We advocate a more decentralized technology and innovation policy for the country.