Innovation in State Owned Enterprises (SOEs) in Developing Economies

Abstract

Despite massive privatization, State Owned Enterprises constitute an important contributor in the GDP of many developing countries. However, SOEs are feeling the heat of competition from their private counterparts, and those which could integrate innovation and R&D as a part of their corporate strategy and business models survived the tsunami of competition and others are perishing gradually. This paper focusses on innovation ecosystem existing in SOEs in various countries. Primary research was conducted in the 5 renowned SOEs in India through interviews with top leadership and field innovators. This data was corroborated with the published information on the SOEs in China and Russia. The objective of the paper is to answer research questions relating to drivers and facilitators of innovation and also barriers to innovation in SOEs. The paper brings out challenges in promoting innovation and presents a workable model for promoting Innovation in SOEs.