Impact of Government Intervention on Manufacturing Enterprises Innovation level, in Ethiopia

Figures & data

Table 1. Innovation, product development and technology transfer

In the past, is there any attempt to innovate, improve technology and products	Control groups (%)		Treated groups (%)			Both groups (%)
	Yes	No	Yes	No		Yes	No
	184 (73.3)	67 (26.7)	150 (70.4)	63 (29.6)		334 (72)	130 (28)
Total	251(100)		213(100)			464(100)
Reason for non-existence			Frequency		Percent
Uncomfortable environment to do so			1		0.8%
Restriction of government			41		31.5%
Lack of skill and knowledge to do so			48		36.9%
Due to less support of government			40		30.8%
Others			0		0
Total			130		100%

Sources: Survey data

Table 2. Innovation level score of SME based on dimensions

Dimensions	Innovation level
	Control group	Treated group	Both Groups
Offering Dimension	3.77	3.55	3.60
Producing new products	3.90	3.64	3.78
creates new market	3.65	3.38	3.53
Biting competition	3.57	3.51	3.54
Producing response to the environment	4.10	3.81	3.97
creating new design/new idea	3.73	3.75	3.75
New technology	4.45	3.36	3.41
new product lines and service to the market	3.43	3.51	3.47
Participating in operating, administrative techniques	3.32	3.42	3.36
Customer Dimension	3.99	3.92	3.96
Identifying the needs of customers	3.68	3.60	3.64
Identifying the markets for products	3.66	3.98	3.81
Manifestation of customer process	4.17	3.89	4.04
Manifestation of customer results	4.14	4.17	4.16
Product/service lines usually dramatic to satisfy customer needs	4.29	3.95	4.14
Solution Dimension	3.27	3.21	3.25
Providing complementary solution	3.00	3.12	3.05
Performs integration of resources	3.00	2.89	2.99
Technology modification (copying,)	3.40	3.19	3.31
Imitating existed innovation	3.43	3.12	3.29
Strategy of adopting technology	3.41	3.40	3.42
Ranked in adopting and innovating new things	3.38	3.54	3.44
Value capture Dimension	2.25	2.22	2.23
Utilizing existing resources	2.59	2.55	2.57
using opportunities for interaction	1.91	1.89	1.90
Processes Dimension	1.91	1.90	1.90
Attempting to improve the process	2.41	2.45	2.43
Newly innovated management system	1.78	1.76	1.77
Gets certification for innovation	1.54	1.53	1.53
Develops management software	1.53	1.50	1.51
Waste management process	2.04	1.95	2.00
Paid an attention on Innovation, R&D, Creativity and technology leadership	2.17	2.19	2.18
Mean = 2.98

Sources: Survey Data

Table 3. Innovation level score of SME based on dimensions

	Innovation score level
Dimensions	Mean	Maximum	Minimum	Mode	S.D
Offering	3.60	4.75	2.50	3.50	0.37
Customer	3.96	5.00	2.40	4.20	0.49
Solution	3.25	4.83	1.67	3.33	0.46
Value capture	2.22	5.00	1.00	2.00	0.65
Process	1.89	3.50	1.00	1.67	0.43
Mean innovation level 2.98

Figure 1. Five dimensions of innovator score level.

Figure 2. Innovation radar of enterprises by dimension.

Table 4. Innovation score level of SMEs by sector wise (mean)

Dimension	Small Manufacturing Enterprises
	Metal & wood	Textile	Agro-processing	Chemical products	Construction input	Minerals & jewelry
Offering	3.92	4.23	3.72	3.52	3.62	3.48
Customer	4.00	3.89	3.98	3.81	3.97	3.91
Solution	3.78	3.96	3.32	3.10	3.26	3.19
Value capture	2.20	2.24	2.07	2.63	2.26	2.15
Processes	1.91	1.91	1.90	1.68	1.93	1.79
Mean	3.16	3.25	3.00	2.95	3.00	2.9

Table 5. Chi-square test results related to innovation dimension and financial preference

Chi-square test using cross tabulation
Innovation capability of owners		Sources of Current Capital		Total
		Internal	Both Internal and External
Systematic Innovator	Count	0	0	0
	Per cent	0	0	0
Occasional Innovator	Count	73	54	127
	Per cent	15.73	11.64	27.37
Low/non-Innovator	Count	206	131	337
	Per cent	44.4	28.23	72.63
Total		279	185	464
Pearson Chi-Square; df = 1, X^2 Exact Sig. (2-sided) = 0.512, significant level = .474 (p > .000)

Sources: Survey Data

Table 6. Estimations of average treatment effect using PSM

Outcome variables	No. of Treated	No. of Control	Matching techniques	ATT	Standard error	t-statistics
Innovation offering dimension	213 212 213 212	112 248 248 249	Attnd attr Attk atts	0.380 0.446 0.446 0.447	0.061 0.046 0.058 0.047	6.219***9.636***7.659***9.477***
Innovation customer dimension	213 212 213 212	112 248 248 249	Attnd attr Attk atts	0.263 0.279 0.290 0.283	0.071 0.016 0.061 0.050	3.719**6.247***4.785***5.665**
Innovation solution dimension	213 212 213 213	112 248 248 249	Attnd attr Attk atts	0.399 0.369 0.368 0.385	0.067 0.083 0.082 0.049	5.986***7.734***4.495***7.854***
Innovation value capture dimension	213 212 213 212	112 248 248 249	Attnd attr Attk atts	0.535 0.563 0.536 0.564	0.073 0.042 0.054 0.057	7.318***9.993***9.899***9.835***
Innovation process dimension	213 212 213 212	112 248 248 249	Attnd attr Attk atts	−0.183 –0.269 -0.250 –0.259	0.047 0.027 0.027 0.036	−3.888**-8.48***-9.42***-7.27***
Level of Innovation (On the five dimensions)	213 212 213 212	112 248 248 249	Attnd attr Attk atts	0.279 0.278 0.278 0.284	0.031 0.015 0.023 0.023	8.95***13.19***12.29***12.15***

Sources: SPSS version 23 results

Table 7. Comparison of treatment on selected outcome variables before matching and after matching

Variables	Binary logistic		Propensity score matching
			attnd		attr		attk		atts
	Effect	Sig	Effect	Sig	Effect	Sig	Effect	Sig	Effect	Sig
IOD	+ve	***	+ve	***	+ve	***	+ve	***	+ve	***
ICD	+ve	***	+ve	**	+ve	***	+ve	***	+ve	**
ISD	+ve	***	+ve	***	+ve	***	+ve	***	+ve	***
IVCD	+ve	***	+ve	***	+ve	***	+ve	***	+ve	***
IPD	NA	no	+ve	**	+ve	***	+ve	***	+ve	***
INVLVL	NA	no	+ve	***	+ve	***	+ve	***	+ve	***

Sources: SPSS version 23 results