Wednesday, 30 September 2015

Does radical innovation require extra reforms of business practices in Rwanda?

Rwandan companies often produce innovations that are new to the company (but which are already present in the market), and less often but still frequently produce innovations that are also new to the market.  Business practices can adjust at the same time (for example, to make production processes more compatible), and the changes may differ between two types of innovation.

The table below shows the rates of business practice reform in Rwandan businesses that introduced innovations new to the company over years 2009-2011.  The rate of practice reform is high, averaging over 80 percent.

The next table shows the rate of practice reform in companies introducing innovations new to the market.  The rate is even higher than in companies with less radical innovations, approaching 90 percent.  The practice reform requirements seem to be more extensive with more radical innovations.

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