Technological innovations and entrepreneurial growth in developing countries

Abstract

This paper set out to review studies that have been done in the area of technological innovation and the growth of entrepreneurship in developing countries. Specifically, the review aimed at examining the challenges facing entrepreneurial growth in developing countries and develop a conceptual foundation that demonstrates the synergy between entrepreneurial growth and technological innovation in developing countries. The literature review found out that entrepreneurial growth in developing countries face challenges associated with the entrepreneurial environment and the individual capacity of entrepreneurs. However, even beyond these, entrepreneurial growth in developing countries still faces a distinct lag in the diffusion of technological innovations from developed countries. This is partly due to low and falling levels of investment in R&D and huge bureaucracies in government procedures. The study concluded that technological innovation has a positive role in entrepreneurial growth in developing countries and thus investment in building the capacity of entrepreneurs, partnerships and collaborations that stimulate technological innovations are critical if the benefits that entrepreneurship offers are to be realized