Investigating the Influencing Factors on Innovation Management in Rural Small Food Industries in Tehran Province

Since the economic performance of industries is dependent to their capacity for innovation, the innovation management skills of managers in small food industries were studied in this research. Data was gathered using questionnaire which addressed managers of small food industries in rural areas of Tehran province. The study was conveyed in 2009 and 2010 and 111 questionnaires was filled up. Heckman Model was used in order to studying the influencing factors on the level of innovation management.
Findings showed a positive effect from environmental factor and communication with producers' factor on innovativeness. Among the innovative firms, the influencing factors on the level of innovation management skills included the firm characteristics with negative effect and contact with advisors with positive effect. Policy-making in order to providing appropriate environment for innovation development, strengthening linkage with other actors in value chain including producers of raw materials for industry, and finally providing advisory services for managers of small food industries in rural Tehran are some of suggestions which were made.

JEL Classification: L6, L66, O31, O32, L84