A qualitative approach to assess innovation in small infant industries within developing countries: The case of pharmaceuticals in Tunisia

Abstract

Empirical methodologies to assess innovation are generally econometric models using ‘quantifiable’ variables. However, the innovation system approach shows that innovation is a social process. Its analysis needs to consider the influence of humans on the innovation system actors’ behaviours and decisions. This challenge is even more crucial when studying small infant industries in developing countries. Indeed, these industries face financial difficulties and bear high fixed costs and R&D expenses. Moreover, in developing countries, innovation is usually a synonym of minor rather than major innovation. Thus, methodologies to assess innovation in infant industries within developing countries must allow for going beyond the sole criterion of innovation performance in order to emphasize innovation potential. The aim of this paper, then, is to estimate innovation within the pharmaceutical industry in Tunisia. Still in its infancy, with only 32 firms, this industry responds to the above-described characteristics. The required data were collected via a qualitative survey covering all the firms in the industry under consideration. The survey was conducted using face-to-face interviews mainly with R&D directors. The results show promising hidden innovation potential within pharmaceutical firms in Tunisia, potential that quantitative methods would underestimate.