Philippine Journal of Public Administration, Vol 52, No 1 (2008)

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Innovation in the Lantern Industry of Pampanga

Christopher M. Sanguyu

Abstract


Pampanga’s lantern industry lacks the impetus for innovation strategy to become globally competitive, and make significant contributions to local economy. It has lost to China in terms of market share; thus, it has to employ appropriate marketing strategy in order to produce and sell premium products focusing on design and craftsmanship. Furthermore, the lantern industry in Pampanga is dominated by micro enterprises with a few which can be classified as small to medium enterprises. Despite the spanning production and sale of holiday decor for several decades already, the product is still in the transitional stage. This can be attributed to the state and condition of the firms in the industry, the small-scale production capabilities of the firms, and the lack of significant local government support through policy. Given these factors, an innovation strategy is developed in the following contexts: the characteristics of the firms, the environment of the firms, and the technology available to the firms. This innovation strategy is also developed using a relevant innovation theory.