Determinants of innovation in small- and medium-sized enterprises in Senegal

For small and medium-sized enterprises (SMEs), innovation is an essential element of survival, particularly in the current context in which globalisation and the development of new technologies are increasing the competitive pressures on firms. For this reason, analyses of the factors that determine innovation are of paramount importance. However, research regarding this issue is crucially lacking, specifically in West Africa and Senegal. Nevertheless, SMEs are an essential component of production in these contexts and have a major role in economic growth. The purpose of this article is to investigate the factors that motivate innovation within SMEs in Senegal. From the OECD perspective, we examine four dimensions of innovation: product innovation, market innovation, process innovation and organisational innovation. Using a sample of 1107 Senegalese SMEs surveyed in 2007 and 2014, we estimate a logistic econometric model to explain innovation referencing certain firm and manager characteristics. To our knowledge, this study is one of the few empirical works regarding the determinants of innovation among SMEs in Senegal and West Africa. The results demonstrate that innovation among SMEs is influenced by several firm characteristics and that this influence varies according to the type of innovation. R&D, export sales, region of operation and competition are the most significant determinants of innovation for Senegalese SMEs.