The fifth most frequently mentioned class in annual reports was entrepreneurial skills of employees. Respondents
indicated that entrepreneurial skills were encouraged but they were limited to improving and modifying products,
services, and processes. They noted that firms in Sri Lanka did not demand as high a level of entrepreneurship from
their employees as firms in developed countries to maximise capital accumulation. Both Food Ltd. and Toba Ltd.
respondents reported that were member firms of a worldwide group receiving virtually all their branded products from
their multinational counterparts, and that most of the associated research and development was carried out elsewhere,
in a developed country within their worldwide group. They stated that sharing brands among the global group enabled
them to spread their research and development costs to increase capital accumulation for the global group of firms.
Toba Ltd. and Beverage Ltd. respondents remarked that it was too expensive for firms in Sri Lanka to build internationally
acclaimed brands on their own since to do so would require heavy financial commitment. Therefore the
firms in Sri Lanka did not have a need for employees with innovative entrepreneurial skills to maximise their capital
accumulation. However, this approach by firms is contrary to the expectations of the government. The government
recently introduced new legislation to encourage entrepreneurship by strengthening intellectual property rights (Code
of Intellectual Property Act No. 40, 2000), with the aim of encouraging employees and firms to generate new ideas and
driving the economy towards a knowledge basis. Some respondents highlighted the number of trademarks their firms
had registered and disclosed in their annual reports, supporting the drive towards a knowledge economy. Although
trademarks are part of intellectual property, therewas little rigour evidenced in utilising the innovativeness of employees