An institutional perspective to challenges undermining innovation activities in Africa

Innovation is of paramount importance if Africa is to achieve sustained economic growth, development, and improved welfare of its people. In this context, the paper argues that institutional factors, despite their importance in shaping innovation on the continent, have received less attention. The paper is based on literature review and uses an institutional analysis framework to explore how institutional factors influence innovation activities. Institutions are the rules of the game - they determine if the game is played, how the game is played, who plays the game, and with what constraints. Currently, the institutions are not fair both at the national and international levels. The institutional set-up is not favourable for any meaningful innovation. Therefore, African governments should aim to create and promote strong and effective (enforceable) institutions at the national and continental levels. In addition, they should aim to have the international institutional set-up favourable to ensure its competitiveness.