Discussion paper No. 215 of 2019 on The Role of Information Communication Technologies in Innovation in Kenya’s Micro, Small and Medium Establishments

Abstract

The interface between information communication technologies (ICTs) and innovation remains largely under-researched. Attempting to bridge this knowledge gap, this cross-sectional study of Kenya’s micro, small and medium establishments examines the role of ICTs in innovation. The study applies Probit estimators to a comprehensive data set of 24,164 micro, small and medium establishments. Generally, the study reveals that the sectors having the highest incidence of innovation are electricity, gas, steam and air conditioning; ICT; education and real estate. Although the minority of establishments generated some innovations, product innovation was the most common type. Generally, information and communication technologies are found to stimulate innovation activity.