Innovation in MSMEs with Reference to Uganda & Indonesia

Sazir Nsubuga Mayanja
St Pter's University, Uganda

Tulus Tambunan
Centre for Industry, SME. & Business Competition
Studies, Universitas Trisakti, Jakarta, Indonesia



This paper is based on interim results form ongoing research on the ability of MSMEs in developing countries to innovate with reference to Uganda and Indonesia. At this initial stage, what is analyzed using existing secondary data is how innovation activities take place in MSMEs in the two countries carrying out innovation. Not yet focused on the determinant factors. In the case of Indonesia, it was found that only a very few micro and small enterprises (MSEs) in the manufacturing industry use the Internet and do innovation. The type of innovation mostly in product innovation. In the case of Uganda, based on a survey of 589 companies with 10 or more employees, the percentage that innovated was much greater than those that did not