INNOVATION AND OBSTACLES IN WEST AFRICAN FIRMS: AN EVIDENCE FROM THE GHANAIAN CONTEXT

Abstract

Innovation is a concept that has kept the attention of researchers worldwide. Innovation leads to product and process improvement, assists the organization to survive, grow faster, efficiently, and be more profitable than non-innovative organisations. However, the innovation level among Ghanaian firms is not yet reaching its full potential. In addition, innovative behaviour among Ghanaian enterprises is still at the infancy stage. To boost the innovation rate, it is imperative to solve the challenges and issues faced by Ghanaian firms. Innovation has become the building block of development in both developed and developing countries it is commonly agreed that innovation is the critical path towards growth and prosperity for countries as well as for individual firms. It is the key to technology adoption, creation and explains the vast difference in productivity across and within countries. However, in Africa, the case seems to have faced a challenging time due to obstacles like finance accessibility, electricity, trade regulations, land access, tax, corruption, informal sector malpractices, tax administration, political instability, transportation, and others. It is against some of these obstacles that we decided to embark on this study to help us critically investigate the effect of the barriers to firms’ growth and its effect on the degree of innovation among Ghanaian firms. To help recommend possible solutions to these obstacles. Hence, this will help facilitate firms’ growth and their degree of innovation. Keywords: Innovation, Obstacles, Firms, Ghana.