les cahiers du mecas
Volume 22, Numéro 1, Pages 511-525
2026-06-02
Financial Access And Informal Competition As Drivers Of Firm-level Innovation In African Countries: Evidence From Uganda
Authors : Bouredja Sara . Bourouaha Abdelhammid .
Abstract
The study aims to identify the main determinants of innovation among variables that theoretically have a direct impact on it. Applying a binary logistic regression model to the BEEPS datasets for Uganda, the empirical results indicate that R&D expenditures are the strongest drivers of both product and process innovation. Product innovation is positively influenced by managerial ownership retail sector activity, competitive pressure from informal firms, and complementarity with process innovation. However, Process innovation is significantly associated with firm age, foreign technology licensing, fixed asset investment, energy management adoption, access to finance, and competition. Descriptive findings indicate that innovation in Uganda is mainly incremental and market-driven. The study highlights the importance of strengthening technological capabilities, financial access, and institutional support to foster sustainable innovation-led growth.
Keywords
process innovation ; product innovation ; uganda ; determinants ; logit regression model
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