Erika Kraemer-Mbula

Research Fellow

Institute for Economic Research on Innovation, South Africa

Informal manufacturing of personal and home care products in South

Africa

Objectives of the study

1. Map the key actors in the innovation system surrounding informal manufacturing

2. Develop an understanding of the obstacles that hinder the performance of micro-enterprises situated in the informal economy.

3. Identification of innovation activities – learning, knowledge flows, technology transfer

4. Understand mechanisms of knowledge appropriation, role of IP and policy implications

Informal manufacturing of personal and home care products in SA

Personal care products: cosmetics, toiletries, perfumes, oral care, foam bath, etcHome care products: dishwasher, bleach, air fresheners, floor polish, etc.

Innovations

Incremental, new to the firm but not new to the worldReactive ( to customers and to suppliers), Proactive Collaborative

Knowledge appropriation Formal mechanisms of knowledge appropriation are not

commonly used – informal mechanisms (e.g. secrecy) are more common.

Lack of knowledge and know-how are key obstacles to innovation & lack of technology – exchange of ideas & tech with other producers, suppliers and formal technology transfer organisations seen as a key for business survival (who owns the ideas?)

Interest in knowledge appropriation emerges as informal manufacturers reach a critical business/market size or when products is highly differentiated - Lack of familiarity with IP regulatory framework

Need to bring IP framework closer to the reality and constraints of micro manufacturers – consultative process.

Thank you

Obrigado/ Спасибо/ शु�क्रि�या�/ 谢谢 / ngiyabonga

erika@ieri.org.za www.ieri.org.za Faculty of Economics & Finance,

Tshwane University of Technology,

159 Nana Sita Street,Pretoria CBD, 0002,Gauteng Province,Republic of South Africa.