The Role of Innovation in Determining the Competitiveness of the Kenyan Electrical and Electronic Manufacturing Enterprises in Kenya

In a globally competitive landscape, competitiveness is sustained through rising productivity originating from innovation, invention, Research and Development (R and D) and service provision (OECD, 2007). R and D continuously feeds into the innovative process of product diversification to create variety for consumers and investors. International trade is increasingly being driven by FDI location and off-shoring making it possible to locate firms in any area of the globe to maximize efficiency. In the case of electrical and electronics, competitiveness is underpinned by networked global production processes locating on basis of competences. This article explores the role of innovation in stimulating the competitiveness of the electrical and electronic sectors in Kenya. It anchors the analysis of the primary data on the theoretical and empirical reviews of past studies in order to establish the significance of the role of innovation in the sector competitiveness. This was analysed on the basis of knowledge acquisition, R and D investments, information access, shares of new products/services and the complementary human resource development for competence enhancement