Innovation and firm performance in South African manufacturing and services businesses

Ever since the German political economist Joseph Schumpeter highlighted the importance of innovation in economic development in 1934, innovation has been widely regarded as the key factor influencing firm performance. In fact, many firms seek ways to achieve greater profits and productivity through different types of innovation. As global market competition and constantly changing technologies continue to erode the value-add of existing products and services, firms need to find new ways to keep up with the market.