This study aimed to examine the role of innovation and technology upgrading (ITU) in the competitiveness of Tanzania’s industrial and export sectors. To achieve this objective, the study was structured as three complementary components. The first component focused on assessing the current status and trends in the technology and innovation profile through a situational analysis. Given the dearth of empirical evidence to support policy dialogue on ITU in Tanzania’s industrial sectors, the second component was an empirical analysis of survey data from the Annual Survey of Industrial Production (ASIP) to identify the drivers of ITU at the firm level and assess its impact on firms’ competitiveness using productivity outcome indicators. To shed light on how firms can practically leverage ITU, the third component was a case study analysis based on an in-depth study of the experiences of selected firms to identify and profile success factors and cases where ITU has dramatically improved performance and competitiveness. This report presents the key findings and recommendations based on these three components.
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