Answers from an Industry-wide Survey NATIONAL CENTRE FOR TECHNOLOGY MANAGEMENT, ILE-IFE www.nacetem.org At the Industrial ...
OUTLINE <ul><li>The Implementing Agency </li></ul><ul><li>The Survey </li></ul><ul><li>Results </li></ul><ul><li>Way Forwa...
The National Centre for Technology Management (NACETEM) <ul><li>Set up to: </li></ul><ul><li>serve as training centre for ...
NACETEM, so far... <ul><li>60 short-term relevant courses in various topics in STI management,  </li></ul><ul><li>Over 500...
The Survey <ul><li>One of NACETEM’s several corporate research projects </li></ul><ul><li>Commenced in 2006 </li></ul><ul>...
Concept <ul><li>Innovation is application of knowledge in production </li></ul><ul><li>Innovation includes machinery/equip...
Survey Characteristics <ul><li>Work in progress; not to be quoted </li></ul><ul><li>Response rate, so far, is about 30% </...
Key Survey Constraints <ul><li>Firms are largely unwilling to give information </li></ul><ul><li>Firms seem to have “lost ...
Zonal Representation in the Sample Firms from the South-West > South-East > North-West in the sample.  Is this indicative ...
Ownership Structure of the Firms <ul><li>Full Nigerian ownership > JVPs > other ownership types. Does this indicate health...
Who are the JVPartners? <ul><li>Most of the JVPs are firm-centred </li></ul>26.3 5 Nigerian firms & Foreign Individual(s) ...
Where is FDI coming from? <ul><li>Europe > Asia > Africa.  </li></ul><ul><li>CAVEAT: This may not be the absolutely repres...
Organisational Structure <ul><li>Manufacturing firms in Nigeria are relatively flat.  </li></ul><ul><li>Does this indicate...
Age of the Firms <ul><li>Industry in Nigeria has come of age </li></ul>Age of Firm (Years) 20 – 39 yrs Mode 80 (81-1) Rang...
Size of the Firms <ul><li>Most of the firms are in the Micro, Small and Medium Enterprises (MSME) category. Average Firm s...
Innovation Indicators… <ul><li>The firms are generally innovative; diffusion-based innovation is the least common </li></u...
… by Firm Size <ul><li>Smaller firms appear to be more innovative… </li></ul>… though firm size is not strongly associated...
… by Firm Age … and the younger ones too … though firm age is not strongly associated with innovation (    p>0....
… and by Firm Location … firms in the North-Central are the least innovative (    p  at 4 df) 90.5 South...
Sources of Information for Innovation EROs contribute little to innovation… … government contribute the least 44 Fairs, ex...
Key Reasons for Innovating Product Quality leads reasons for innovation… % of innovators Very important reasons 70 Improve...
Key Reasons for Innovating … deliberate efforts is least important % of innovators Very important reasons 45 Deliberate in...
Impact of Innovation Innovators made more profit… 24 Rejection/Return of products 55 Employment 76 Diversification 80 Posi...
Barriers to Innovation Economy and funding require attention… 35 Long administrative/approval process within firm 37 Lack ...
Most important forms of Govt. Support Firms think financial incentives are critical… 24 Technical Support/advice 27 Subsid...
Way Forward <ul><li>We all have responsibilities </li></ul><ul><ul><li>Government (focus on macro-economics and institutio...
THANK YOU
Upcoming SlideShare
Loading in …5
×

Firm-level innovation in Nigeria

968 views
855 views

Published on

2 Comments
0 Likes
Statistics
Notes
  • Be the first to like this

No Downloads
Views
Total views
968
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
12
Comments
2
Likes
0
Embeds 0
No embeds

No notes for slide

Firm-level innovation in Nigeria

  1. 1. Answers from an Industry-wide Survey NATIONAL CENTRE FOR TECHNOLOGY MANAGEMENT, ILE-IFE www.nacetem.org At the Industrial Innovation and NIS Workshop organised by UNIDO 22-23 November, 2007 Abuja, Nigeria W. O. Siyanbola (PhD) & A. A. Egbetokun HOW CAPABLE ARE MANUFACTURING FIRMS IN NIGERIA TO INNOVATE?
  2. 2. OUTLINE <ul><li>The Implementing Agency </li></ul><ul><li>The Survey </li></ul><ul><li>Results </li></ul><ul><li>Way Forward </li></ul>
  3. 3. The National Centre for Technology Management (NACETEM) <ul><li>Set up to: </li></ul><ul><li>serve as training centre for the development of high level manpower in Science, Technology and Innovation (STI) management to all tiers of government and the private sector. </li></ul><ul><li>conduct policy research, evaluation and review with a view to making policy recommendations for dynamic technology-based development. </li></ul><ul><li>establish, maintain and provide access to databanks on STI research outputs and facilitate activities towards commercial exploitation. </li></ul><ul><li>Design and run PG Courses/Programmes in STI management in conjunction with appropriate Departments/Units/Centres of Universities/Institutions. </li></ul><ul><li>Assist government at all levels in the country in STI policy formulation and strategies for utilising such for development. </li></ul><ul><li>Collaborate with other countries especially African countries in STI policy research, training and consultancy. </li></ul>
  4. 4. NACETEM, so far... <ul><li>60 short-term relevant courses in various topics in STI management, </li></ul><ul><li>Over 500 participants in attendance. </li></ul><ul><li>Over 150 students (mid to high-level workers) trained through weekend PGD in Technology Management (Lagos and Ile-Ife; Abuja coming soon). </li></ul><ul><li>2 major Policy Discussion Fora for top-level policy makers </li></ul><ul><ul><li>Experts Forum on STI Management (National Assembly S&T Committee Members; 2006) </li></ul></ul><ul><ul><li>STI Policy Dialogue for State Ministries (Perm Secs/Technocrats from States; 2007) </li></ul></ul><ul><li>6 Concluded research projects </li></ul><ul><li>(see http:// www.nacetem.org/concluded_research.htm ) </li></ul><ul><li>9 ongoing research projects (see http:// www.nacetem.org/research.htm ) </li></ul>
  5. 5. The Survey <ul><li>One of NACETEM’s several corporate research projects </li></ul><ul><li>Commenced in 2006 </li></ul><ul><li>Data collection commenced in September 2007 </li></ul><ul><li>Aims mainly to understand the innovative characteristics of Nigeria’s manufacturing industry and how best they can be helped </li></ul>
  6. 6. Concept <ul><li>Innovation is application of knowledge in production </li></ul><ul><li>Innovation includes machinery/equipment acquisition </li></ul><ul><li>An innovation is relative only to the firm; focus is not on novelty in the industry, the country or the world </li></ul><ul><li>Firms’ innovation capability is manifested in their innovation activities </li></ul>
  7. 7. Survey Characteristics <ul><li>Work in progress; not to be quoted </li></ul><ul><li>Response rate, so far, is about 30% </li></ul><ul><li>Used the ISIC Rev3 </li></ul><ul><li>Covered all industries </li></ul><ul><li>Reference Period: 2003 - 2006 </li></ul><ul><li>Used stratified random sampling </li></ul><ul><li>Used questionnaire for data collection </li></ul><ul><li>Questionnaire administered by the KIA </li></ul>
  8. 8. Key Survey Constraints <ul><li>Firms are largely unwilling to give information </li></ul><ul><li>Firms seem to have “lost faith” in government </li></ul><ul><li>Data collection is expensive! </li></ul><ul><li>WE ARE OPEN TO COLLABORATION </li></ul>
  9. 9. Zonal Representation in the Sample Firms from the South-West > South-East > North-West in the sample. Is this indicative of the level of industrial activity in these zones? WE BELIEVE SO!
  10. 10. Ownership Structure of the Firms <ul><li>Full Nigerian ownership > JVPs > other ownership types. Does this indicate health in the economy? MAYBE! </li></ul>4.6 4 100% Foreign Individual(s) 26.4 23 Joint Venture 100.0 87 Total 2.3 2 100% Foreign Corporation 4.6 4 Nigerian Public Ownership 62.1 54 100% Nigerian Private Percent Frequency  
  11. 11. Who are the JVPartners? <ul><li>Most of the JVPs are firm-centred </li></ul>26.3 5 Nigerian firms & Foreign Individual(s) 36.8 7 Nigerian Firms & Foreign firms 100.0 19 Total 21.1 4 Unspecified 15.8 3 Nigerian Govt. & foreign firm(s) 21.1 4 Nigerian Public- Private Partnership Percent Frequency  
  12. 12. Where is FDI coming from? <ul><li>Europe > Asia > Africa. </li></ul><ul><li>CAVEAT: This may not be the absolutely representative situation because the Asian-owned firms were less responsive to the survey. </li></ul>
  13. 13. Organisational Structure <ul><li>Manufacturing firms in Nigeria are relatively flat. </li></ul><ul><li>Does this indicate good management practice? WE BELIEVE SO. </li></ul>10 (12-2) Range 2.274 Standard Deviation 4.94 Mean 3 Mode Value Statistic
  14. 14. Age of the Firms <ul><li>Industry in Nigeria has come of age </li></ul>Age of Firm (Years) 20 – 39 yrs Mode 80 (81-1) Range 15.7 Standard Deviation 23.9 Mean Value Statistic
  15. 15. Size of the Firms <ul><li>Most of the firms are in the Micro, Small and Medium Enterprises (MSME) category. Average Firm size is 35 employees (2006 figures) </li></ul>
  16. 16. Innovation Indicators… <ul><li>The firms are generally innovative; diffusion-based innovation is the least common </li></ul>44.8 Diffusion-based 55.2 Marketing 74.3 Organisational 78.1 Process 83.8 In-house Activity based 84.8 Product 88.6 General Percentage of Firms Innovation Type
  17. 17. … by Firm Size <ul><li>Smaller firms appear to be more innovative… </li></ul>… though firm size is not strongly associated with innovation (    p>0.05  at 4 df) 100.0 Over 300 100.0 100 - 299 75.0 50 - 99 84.4 10 - 49 86.7 Less than 10 % Innovators Firm Size
  18. 18. … by Firm Age … and the younger ones too … though firm age is not strongly associated with innovation (    p>0.05  at 5 df) % Innovators Firm Age 66.7 Over 50 91.7 40 - 50 90.9 20 - 39 100.0 10 - 19 88.9 5 - 9 83.3 Less than 5
  19. 19. … and by Firm Location … firms in the North-Central are the least innovative (    p  at 4 df) 90.5 South-West 100.0 North-West 100.0 South-South 50.0 North-Central 83.3 South-East % Innovators Zone
  20. 20. Sources of Information for Innovation EROs contribute little to innovation… … government contribute the least 44 Fairs, exhibitions 52 Education & research institutes (EROs) 45 Parent firm 46 Professional journals & trade pubs 47 Business and industry associations 52 Client firm 78 Customers 61 Internal 39 Government 41 Consulting firms 62 Suppliers % of Innovating Firms Very important sources
  21. 21. Key Reasons for Innovating Product Quality leads reasons for innovation… % of innovators Very important reasons 70 Improve working conditions 73 Take advantage of new technology 75 Extend product range 82 Lower production costs 91 Satisfy customers’ demands 100 Improve product quality
  22. 22. Key Reasons for Innovating … deliberate efforts is least important % of innovators Very important reasons 45 Deliberate in-house efforts 50 Avail of government support 50 Replace old product generations 55 Deal with new competitors in export markets 60 Deal with the challenge of new technology 62 Deal with new competitors at home 65 Comply with Nigerian laws and standards 65 Develop more environmental-friendly products/processes
  23. 23. Impact of Innovation Innovators made more profit… 24 Rejection/Return of products 55 Employment 76 Diversification 80 Positive environmental impact 82 New product development 82 Process improvement 86 Compliance with regulations 89 Product differentiation 90 Market share (domestic) 93 Profit Increases in % of innovators Very Significant Impact
  24. 24. Barriers to Innovation Economy and funding require attention… 35 Long administrative/approval process within firm 37 Lack of skilled personnel 45 Lack of information on technology 47 Weak customer demand 47 Legislation/legal restrictions 57 High cost of innovation 64 Lack of financing 72 Domestic economic conditions % of innovators Very Significant Obstacles to Innovation
  25. 25. Most important forms of Govt. Support Firms think financial incentives are critical… 24 Technical Support/advice 27 Subsidies 29 Infrastructure support 29 R&D Funding 30 Training 34 Tax Rebates 36 Loans and Grants % of innovators Forms of Govt Support
  26. 26. Way Forward <ul><li>We all have responsibilities </li></ul><ul><ul><li>Government (focus on macro-economics and institutions) </li></ul></ul><ul><ul><li>EROs (foster relationships) </li></ul></ul><ul><ul><li>Development Partners (assist with funding) </li></ul></ul><ul><ul><li>Industry (Be willing to cooperate) </li></ul></ul>
  27. 27. THANK YOU

×