Abstract:
The ICT sector in Palestine is growing in quantity and scope of works endorsed by the governmental institutions. ICT enterprises working on software development related works have started two decades ago. Some of these enterprises have scored success on national and regional levels. The ICT software development enterprises are so much important in the national innovation system as they are not only delivering goods but providing diversity of services and tools used in the process of knowledge generation and implementation and the knowledge-based-economy. In an effort of assessing the innovation levels in the Palestinian software development enterprises, the community innovation survey questionnaire has been translated, tailored and used on a representative sample. Analysis of the innovation survey ques-tionnaire brings promising results that need to be carefully studied. It is found that most enterprises are innovators and having high potentials. However, potentials are found to be fragmented as national directive policies are not yet devel-oped. For the development of the sector, public-private-academic partnership is needed.