The Factors Affecting the Manufacturing Industry’s Innovativeness and Competitiveness in Ethiopia

In today’s global economy, technology management plays a vital role through investing in and utilizing product and process innovation in manufacturing firms. It is a disreputable fact that technology transfer and innovation make manufacturing or production processes more effective and efficient, thereby increasing the chances of competing favorably with the developed world and reducing the risk of instability to market demands. Though the innovativeness of Ethiopian manufacturing firms is limited, this study is intended to investigate and examine the factors that affect manufacturing firms’ innovativeness, competitiveness, and technology management practices in Ethiopia. The research data sources included manufacturing firms, industry consultants, professionals, and researchers in Ethiopia. The study used cross-sectional data from target groups at a point or period. The Pareto chart tool analyzes and prioritizes the challenges hindering the manufacturing firm’s innovativeness and competitiveness. The study identified the main challenges of innovation in manufacturing firms: a lack of innovation strategy, innovative leadership, qualified and innovative employees, innovation funds, and technology and innovation awareness. In conclusion, to create competent and innovative manufacturing firms a well design government and firms’ innovation strategy are crucial. Keywords: Innovativeness, Manufacturing industries, Competitiveness, Pareto Chart