An Investigation on Innovation Barriers in Manufacturing Firms

This study conducts to find out the key barriers of innovation in the manufacturing firms and evaluates the impact of the lack of environmental resources, organizational structure, government support and stability in firm innovation. Data was utilized through the enterprise survey data developed by World Bank (WBES’2013) of manufacturing companies in Bangladesh using the Marginal and Ordinary least squares (OLS) regression models. Results indicated that institutional aspects, land and finance support, energy and political factors are the main barriers to the propensity of a firm to innovate. The implication is that firms are likely to improve their innovation performance as they increasingly reconfigure their obstacles with regard to strategy development and technological investments