Micro-level determinants of innovation: analysis of the Nigerian manufacturing sector

Abstract

This paper uses the binary logistic regression to test two hypotheses among manufacturing firms in Nigeria. First, the influence of firms’ innovation activities on the propensity to implement innovations and second, whether size influences the type of innovation implemented by firms. Using the data from the Nigerian Innovation Survey 2008, the results show that intramural R&D influences firms’ likelihood of implementing all the four innovation types being statistically significant at 0.05 level. In addition, investment in machinery and equipment specifically increases firms’ likelihood of introducing product innovation. Similarly, market introduction of innovations impacts on marketing innovation. The binary regression result however shows that the size of manufacturing firms in Nigeria does not significantly influence the introduction of any type of innovation.

Keywords:

• innovation activities
• innovation types
• innovation determinants
• size
• manufacturing
• Nigeria

Disclosure statement

No potential conflict of interest was reported by the authors.