Key Drivers of Product and Service Innovation in

Innovation is internationally recognized as an important source of competitiveadvantage. It was the aim of this research to isolate which factors play a keyrole within South African firms in unlocking their product and serviceinnovation ability, and in so doing potentially promote prosperity for firmsindividually and for the country as a whole.Six factors were posited as propositions on the basis of what crystallized out ofthe literature review. A survey was distributed in electronic format to seniormanagers in 70 firms and the respondents were asked to rate 29 statementson a 5 point Likert scale. Factor analysis was conducted on the data collectedin order to establish what the key drivers of innovation are.Although the factor analysis which was conducted did not clearly point to thesix propositions initially identified, generalized groupings of questionspertaining to the six propositions were isolated. The study does serve toconfirm the existence of each of the propositions as drivers of product andservice innovation in South African firms.