Emerging Tech

Obstacles To Innovation : Evidence From Malaysian Manufacturing Firms

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Executive Summary

This paper investigates the obstacles to innovation faced by Malaysian manufacturing firms during the process of innovation. The data are from the National Survey of Innovation 2000-2001 (NSI-3). The shortcomings and the relevance of each of these obstacles are evaluated by type of innovator firm. For this, each firm is categorized - based on its level of innovation activity - as an innovator or as a non-innovator. The analysis also explores the differences between firms by industry type and firm size. The results show that among all obstacles, economic related factors appear to be the most important. Furthermore, the level of importance of obstacles is different for innovator and non-innovator firms.

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