Abstract:
Little is known about the effect that clustering has on product innovativeness among manufacturing SMEs in developing countries such as Kenya. Applying logistic regression, the results revealed that suppliers' proximity, customer proximity and collaboration were positive predictors of SMEs manufacturing innovative Products. Thus maintaining close "cooperative competition" enables the SMEs in clusters acquire new product knowledge, production technology, and market information from suppliers, customers and collaborating research institutions thereby developing novel and unique products. There is need to invest in product development platforms pivotal to developing, strengthening and enhancing cluster SMEs products innovativeness.
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