A Conceptual Framework of Innovation for Economic Diversification, National Competitiveness and Sustainable Development

Abstract

Innovation has become one of the fundamental drivers of today's competitiveness of countries as well as organisations. Although there is universal agreement on the role of innovation in spurring economic growth and development, few studies have explored the role that innovation plays in economic diversification; a void this paper sets out to fill. This paper investigates the role of innovation in economic diversification, through a review and synthesis of related literature on innovation and economic diversification. The study argues that leveraging innovation by developing economies is likely to result in robust diversification and competitiveness of such economies. The paper highlights some pertinent issues that countries need to put into place as a way to promote innovation. The paper contributes by proposing a conceptual framework that can be used to guide innovation activities for competitiveness.