Abstract:
In a globally competitive landscape, competitiveness is sustained through rising productivity
originating from innovation, invention, Research and Development (R and D) and service provision
(OECD, 2007). R and D continuously feeds into the innovative process of product diversification to
create variety for consumers and investors. International trade is increasingly being driven by FDI
location and off-shoring making it possible to locate firms in any area of the globe to maximize
efficiency. In the case of electrical and electronics, competitiveness is underpinned by networked
global production processes locating on basis of competences. This article explores the role of
innovation in stimulating the competitiveness of the electrical and electronic sectors in Kenya. It
anchors the analysis of the primary data on the theoretical and empirical reviews of past studies in
order to establish the significance of the role of innovation in the sector competitiveness. This was
analysed on the basis of knowledge acquisition, R and D investments, information access, shares of
new products/services and the complementary human resource development for competence
enhancement.
