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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/4179

Title: Innovation and conventional lending practice of banks in Ethiopia:
Authors: Sewale, Bitew
Advisors: Bamlaku Alamirew
Keywords: innovation, patenting, access
finance, lending
Copyright: Jun-2011
Date Added: 30-Nov-2012
Publisher: AAU
Abstract: The research was initiated to pinpoint the trend of bank lending from the context of enabling startups and innovations, to clarify the current practice of lending from the above context, to identify the basic factors that influence the success of innovations and to forward workable solutions in the area. The basic methods of data collection used to come up with the findings of the research were: interviews with bank professionals and patented innovators, desk review of lending policies of selected banks, review of innovation and patenting policy of the nation, reviewing the domestic credit portfolio of the country and survey questionnaires. The survey questionnaire was collected from 40 different minor inventors out of a total of around 70 inventors and 110 inventions. The basic data analysis methods used to analyze the data obtained in the aforementioned ways were description and econometric analysis. The findings obtained through these methods show that: bank lending has been skewed towards more organized, experienced and collateral possessing firms than new startups and innovators. In addition, the current practice has nothing new when compared with the trend despite the fact that the share of loan granted to the manufacturing sector has increased recently. Finally, in assessing the factors that affect the success of innovation, access to finance was found the only significant variable. Educational level, family size, nature of the invention and availability of training were found insignificant to affect the success of innovation. Basing this, the researcher forwarded some workable solutions regarding the need for frequent revision of innovation policies, separating the possession of private banks from respective borrowers and encouraging financial policies that favor new startups and innovators
URI: http://hdl.handle.net/123456789/4179
Appears in:Thesis - Regional and Local Development

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