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?

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!

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. … 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. 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. 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. 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. 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. 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. 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

27. THANK YOU