University of Twente Student Theses


Innovation in small scale industries in Kerala

Jagersma, T. (2008) Innovation in small scale industries in Kerala.

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Abstract:This research is a personal bachelor’s assignment of Business Administration & Engineering study in combination with the final report of the minor ‘Sustainable Development in a North- South Perspective`. Research has been done in a collaboration of the University of Twente and the Centre for Development Studies in Kerala, India. This report is about innovation in Small Scale Industries (SSI) in Kerala. A Small Scale Industry in the Indian context is an industrial undertaking in which the investment in fixed assets in plants and machinery, whether held on ownership terms or lease or on hire purchase, does not exceed Rs 10 million, equivalent 175 thousand euro (exchange rate April 2007 ). (Small Industries Development Organization, 1999) In this bachelor’s assignment, different opinions on innovation are looked at and it is tried to find out which role the Keralan SSI have regarding innovation. The research question is. What type of innovation processes in SSI exist in Kerala, and what are their contribution to economic development? This is researched by means of two case studies in SSI in Kerala, namely Hykon and Pilots India. The case studies in both SSI, oriented on the domestic market, support the idea that developing countries should take into account that innovations are not shared easily among firms, and should be analyzed in the historical context in which it occurred. There are various positive factors in Kerala that enable the development of SSI and innovation within the SSI. There are enough highly-educated workers and the government has set up institutions that can support SSI. Besides that, there is sufficient expendable income amongst the population to ensure a good consumption market. Within reason, out of the two case studies, we can carefully conclude that there are enough SSI in Kerala with the capability to innovate. True, these capabilities are on the ‘learning by doing’ level. However, this level of capability has often proven itself to be sufficient in daily practice for the adopting of new products and techniques. There is a positive correlation between the presence of FTC and various economic factors. There is a positive correlation between innovation that occurs on ‘learning by doing’ level between the two SSI and the; - Growth and success of the SSI - The introduction of new products - The creating of jobs for people with a higher education For further development of the economy in Kerala, business education is of greater importance than technological education. My advice would be for organizations of the government to take more time to address the managers’ potential and to offer supporting question-oriented business courses.
Item Type:Essay (Bachelor)
Centre for Development Studies, India
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration BSc (56834)
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