Importance of Openness for Production and Innovation in Informal Sector Cluster: Lessons From Nigeria

Abstract

The study investigated the role of openness, networking, and partnership on production and innovation among firms within the Otigba ICT cluster in Nigeria. A questionnaire were administered on 200 purposively selected business owners/leaders of informal tech-based enterprises in the cluster. The results showed that there were simultaneous occurrence of competition and co-operation within the cluster. Modes of openness within the cluster were by exchanging information and sharing experience with other technicians. Firms were majorly (70%) involved in process and marketing innovations (30%). Openness, networking, and partnership played a very significant role on access to information, customers, new domestic market, tools/technology, suppliers of raw materials, and inputs among the enterprises. A majority (95%) of the respondent enterprises which exhibited cluster attributes were involved in one form of innovation or the other. The study concluded that openness, networking, and partnership had engendered scaling-up among the enterprises.