National Innovation System Factors, Incentives, Culture And Institutional Linkages In Kenyan Ict Innovation Firms

Abstract

National Innovation System (NIS) is the set of institutions and their institutional institutional linkages that allow movement of information and technology among organizations and persons which is vital to the innovative undertakings on the national scale. It is based on assumption that encourages interconnectedness among the parties participating in innovation which is necessary for increasing economic growth and technological performance. The study aimed at exploring the understanding of NIS and competitiveness, both at sectoral and national level. The study attempted to address the question: what is the effect of innovation incentives and innovation culture on the relationship between NIS factors on the institutional linkages of the NIS in Kenya. The study was thus set to investigate the influence of innovation incentives and innovation culture on the NIS factors and institutional institutional linkages in Kenyan NIS. Specifically the study was set to establish the effect between NIS factors and institutional linkages in the NIS in Kenya, to investigate the influence of innovation incentives on the relationship between NIS factors and institutional linkages in the NIS in Kenya, to determine the influence of innovation culture on the relationship between NIS factors and institutional linkages in the NIS in Kenya and to determine the joint influence of NIS factors, innovation incentives and innovation culture on institutional linkages in the NIS in Kenya. This research study adopted cross-sectional survey design. The study targeted 112 Kenyan ICT innovation institutions via census whose outcome was 73 institutions responding within the study timeframe. The research study used semi-structured questionnaire with both closed and open-ended questions as well as path analysis with multiple regression analysis. The study established that there exists a positive influence of NIS factors on institutional linkages in the NIS in Kenya. Innovation incentives had a moderating influence on the relationship between NIS factors and institutional linkages in the NIS in Kenya. Innovation culture had an intervening influence on the relationship between NIS factors and institutional linkages in the NIS in Kenya. Also it was found out that there exists joint effects of NIS factors, innovation incentives and innovation culture on the institutional linkages in the NIS in the Kenyan ICT innovation institutions. All the effects of NIS factors, innovation incentives and innovation culture on institutional linkages in the NIS in Kenya were significant. There was presence of reverse causality among the NIS factors and their institutional linkages in NIS in Kenya hence a lot of different results can be extracted based on these variables. The study results indicate that more communication, investment in infrastructure and teamwork has to be focused by these institutions to enhance innovation. Thus NIS factors, innovation incentives and innovation culture are key elements that influence the institutional linkages in the NIS in Kenyan ICT innovation institutions. For more innovation to be realized through NIS, then partnership with other stakeholders should be encouraged in these institutions especially universities that deals mainly with sharing knowledge and not necesarily transmission of skills. Left to itself, the market will produce less innovation and lower productivity based on societal needs. For policy-making in NIS, most focus has been put on practice than theory. The study used a combined theory approach to ascertain the joint effect of the RBV, SNT and DIT theories on institutional linkages in NIS in Kenya. This points out to the need of pairing the theories as opposed to individual focus to better inform the institutional linkages in NIS.