| dc.description.abstract | This study investigates effects of firm-level, sector-level and business environment factors on
manufacturing firms’ Research and Development (R&D) investment decisions in Kenya.
Design/methodology/approach – Panel Probit regression model is employed to analyse effects of the
explanatory variables on manufacturing firms R&D investment decisions.
Findings – Access to external finance, lower informal sector competition, exports market participation, larger
firm size and firms in high technology subsectors increase probabilities of undertaking R&D investment
decisions.
Research limitations/implications – The findings underscore the need to consider institutional
framework, aimed at easing business environment constraints related to access to finance, export promotion
and competition from informal sector enterprises. Future research should consider cross-country analysis
within the Sub-Saharan African (SSA) region to understand implications of institutional contexts that prove to
be a challenge to address in a study based within a single country.
Practical implications – Policymakers need to consider addressing business environment constraints that
impede R&D investments by private sector enterprises in developing countries. Formal private sector firms
should design R&D investment strategies and lobby for policy interventions targeted at business environment
constraints.
Originality/value – This study considers effects of variables underexplored in existing literature, notably
competition from informal sector firms, R&D-intensity technological classification and an objective measure of
access to finance. The study also utilises a panel survey data, which was underexplored in prior studies within
SSA economies. | en |
