Innovation in the Footwear Sector and Some Effects on Employment and Poverty

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Innovation in the footwear sector and some effects on employment and poverty in Ethiopia: A case study approach Research report submitted to African Clothing and Footwear Research Network (ACFRN) By Tegegne Gebre-Egziabher and Tilahun Teklu Addis Ababa University August 31/2009 Table of contents Table of contents List of tables List of Acronyms Acknowledgment 1. Introduction 1.1Background and statement of the problem 1.2 Objectives of the study 1.3 Research Methodology 1.4 Organization of the report 2. Innovation: A Review of relevant literature 2.1 Definition and Types of innovation 2.2 Incidence of innovation in developing countries 2.3 Innovation and employment 3. The Shoe industry in Ethiopia: Background perspective 4. Innovative practices of the case study firms 4.1 Description of the case studies 4.2 Innovative practices 4.2.1 Process innovation 4.2.2 Product innovation 4.2.3 Market innovation 4.2.4 Organization innovation 4.3 Characteristic features of innovation in the study firms 4.3.1 Routine and non routine innovations (Expansion and Incremental) 4.3.2 Export orientation and domestic competition as drivers of innovation 4.3.3 Role of external agents in facilitating innovation 4.3.4 Role of foreign firms in innovation (global value chain) 4.3.5 Impetus from availability of raw materials 4.3.6 Vertical integration as a trend 4.3.7 The prevalence of organizational and process innovations in big firms 4.3.8 High engagement of medium firms in product and marketing innovations 5. Employment change and poverty 5.1 Employment change 5.2 Poverty reduction 6. Conclusion 7. References List of Tables Table 1:

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