Periodic Reporting for period 1 - ECO-DEKS (External knowledge sourcing strategies for environmental innovation in the industrial sector of Nigeria)
Okres sprawozdawczy: 2019-10-23 do 2021-10-22
To date, very few studies have systematically investigated the role of analytic (universities and research labs, etc.) and synthetic (suppliers, customers, competitors, etc.) external knowledge sources for the realisation of eco-innovation. This lack of evidence is particularly troublesome for eco-innovative firms known to operate within different techno-economic contexts than “traditional” firms, which necessitate searching for specific kinds of green knowledge and cooperation arrangements.
ECO-DEKS focused on the manufacturing and service sectors because of their significance to environmental sustainability. Together, these two sectors account for 70.84% of the GDP of the Nigerian economy in 2017. Similar patterns are observed in many developing countries. The sectors are similar in that they are characterised by considerable innovation potentials and the highest potential environmental gains, but differ in technology and the context within which the economic agents act. Therefore, the way in which firms within each sector access external knowledge useful for innovation is arguably and markedly different. Therefore, the result of this study becomes important because eco-innovation usually involves high level of technological capabilities, which are often lacking among the majority of the firms in developing countries.
The overall objectives of the project are to
(1) examine how the manufacturing and service sectors access external knowledge to eco-innovate;
(2) investigate if the depth of external search for knowledge diminishes propensity to eco-innovate;
(3) understand to what extent do eco-innovators rely on knowledge institutions as sources of knowledge;
(4) examine what type of external knowledge do firms use to develop either cleaner or end-of-type technologies and
(5) access extant policies that are likely to enable more radical structural change and provide the basis for developing green growth paths in the sectors.
ECO-DEKS focused on the manufacturing and service sectors because of their significance to environmental sustainability. Together, these two sectors account for 70.84% of the GDP of the Nigerian economy in 2017. Similar patterns are observed in many developing countries. The sectors are similar in that they are characterised by considerable innovation potentials and the highest potential environmental gains, but differ in technology and the context within which the economic agents act. Therefore, the way in which firms within each sector access external knowledge useful for innovation is arguably and markedly different. Therefore, the result of this study becomes important because eco-innovation usually involves high level of technological capabilities, which are often lacking among the majority of the firms in developing countries.
The overall objectives of the project are to
(1) examine how the manufacturing and service sectors access external knowledge to eco-innovate;
(2) investigate if the depth of external search for knowledge diminishes propensity to eco-innovate;
(3) understand to what extent do eco-innovators rely on knowledge institutions as sources of knowledge;
(4) examine what type of external knowledge do firms use to develop either cleaner or end-of-type technologies and
(5) access extant policies that are likely to enable more radical structural change and provide the basis for developing green growth paths in the sectors.
The first period covers the first six months of the project running from October 23rd, 2019 to April 20th, 2020. On arrival at the host’s office, I had a seminar where I explained the motivation and objectives of ECO-DEKS. However, it should be noted that Italy was in lockdown for the most part of 2020 as a result of COVID 19 pandemic. This situation disrupted the timelines for the ECO-DEKS deliverables. For instance, I could not go to Nigeria for data collection (an activity that was supposed to have started in March 2020) until October 2020. At the same time, I could not travel to attend conferences, workshops, seminars physically. Against all odds, I still managed to carry out all the project activities. For instance, during the strict lockdown in Italy, I participated in capacity development programs through online seminars, conferences, academic lectures, etc. I also started the data collection effort online to be able to reach the target audience before going to Nigeria to collect the data physically. It is also important to note that I submitted my responses to the ethical issues raised with regard to the ECO-DEKS project during this period. I also started developing the first working paper for the ECO-DEKS project during this period.
The second quarter covers project activities from May 2020 to October 2020 of the ECO-DEKS project. During this period, I submitted the final output of the data collected from eco-innovative firms in Nigeria, banners and flyers, newsletter, database of eco-innovative firms, data management guideline manual (DMGM). The Data Management Plan was also submitted to the European Commission through the Horizon 2020 participant’s portal. Other activities carried out include the presentation of the second working paper. The third quarter covers project activities from November 22nd, 2020 to April, 23rd 2021. I went to the field in Nigeria to collect data for ECO-DEKS project during this period. As part of the communication, dissemination & outreach activities, I made a presentation on the project's status to the academic community and organized a grant writing training on Marie Curie fellowship at the National Centre for Technology Management, Nigeria. I also made a presentation about the project in workshop that consisted of many key stakeholders in the industrial sector of Nigeria during this trip. I also continue to participate in capacity development programs through online seminars, conferences, academic lectures etc. The last period covers the last six months of the project activities from April, 24th 2021, to October, 21st 2021. At the end of the project, even though I was meant to submit two working papers as part of the deliverables within the project's duration, I managed to submit three working papers altogether. This is in addition to completing all the research activities and meeting all the ECO-DEKS timelines. I am also currently working on the fourth working paper. All three working papers were presented at several seminars and conferences.
The second quarter covers project activities from May 2020 to October 2020 of the ECO-DEKS project. During this period, I submitted the final output of the data collected from eco-innovative firms in Nigeria, banners and flyers, newsletter, database of eco-innovative firms, data management guideline manual (DMGM). The Data Management Plan was also submitted to the European Commission through the Horizon 2020 participant’s portal. Other activities carried out include the presentation of the second working paper. The third quarter covers project activities from November 22nd, 2020 to April, 23rd 2021. I went to the field in Nigeria to collect data for ECO-DEKS project during this period. As part of the communication, dissemination & outreach activities, I made a presentation on the project's status to the academic community and organized a grant writing training on Marie Curie fellowship at the National Centre for Technology Management, Nigeria. I also made a presentation about the project in workshop that consisted of many key stakeholders in the industrial sector of Nigeria during this trip. I also continue to participate in capacity development programs through online seminars, conferences, academic lectures etc. The last period covers the last six months of the project activities from April, 24th 2021, to October, 21st 2021. At the end of the project, even though I was meant to submit two working papers as part of the deliverables within the project's duration, I managed to submit three working papers altogether. This is in addition to completing all the research activities and meeting all the ECO-DEKS timelines. I am also currently working on the fourth working paper. All three working papers were presented at several seminars and conferences.
This study established that many enterprises in the country are beginning to embrace eco-innovation as a key driver of their green competitiveness. This is evident as exhibited by the high prevalence of eco-innovative enterprises, especially service enterprises. Acquiring machinery, equipment, buildings, computer hardware, and software accounted for the largest share of expenditure on innovation in both the manufacturing and service sectors. Another important innovation activity taking a huge part of the financial resources is the intramural R&D, which could indicate the commitment to eco-innovation, especially in the manufacturing sector. This could indicate that a significant proportion of manufacturing enterprises are implementing eco-innovations through formal R&D. The fact that some of the manufacturing enterprises are carrying out internal R&D could mean that the time is right to create green R&D and technology clusters in the country. These clusters can be integrated as part of the national or state innovation system. Firms and organisations involved in these clusters will achieve synergies and leverage economic advantage from shared access to R&D outputs, laboratory, supplier and distribution chains, and support institutions. These clusters should, however be allowed to grow organically with government support. Government should also improve the ease of doing business in Nigeria. This can be achieved by giving economic incentives such as creating free trade zones, tax holidays, soft loans, and innovation funds.
The study also revealed that incremental and radical eco-innovations are likely influenced by different kinds of external knowledge sources as they are both highly associated with synthetic and analytical knowledge respectively. This has a lot of implications for policy and practice. For the managers, it is important to develop collaboration with external partners such as customers, suppliers, competitors if the focus of the eco-innovation strategies is incremental. But for firms interested in breaking new grounds and opening up new markets, interacting with R&D institutions and universities is essential. For the policymakers, it is important to create a business environment that strengthens the firm’s collaboration with the knowledge institutions to develop radical eco-innovations that have higher chances of speeding up decarbonisation of the economic sectors.
The study also revealed that incremental and radical eco-innovations are likely influenced by different kinds of external knowledge sources as they are both highly associated with synthetic and analytical knowledge respectively. This has a lot of implications for policy and practice. For the managers, it is important to develop collaboration with external partners such as customers, suppliers, competitors if the focus of the eco-innovation strategies is incremental. But for firms interested in breaking new grounds and opening up new markets, interacting with R&D institutions and universities is essential. For the policymakers, it is important to create a business environment that strengthens the firm’s collaboration with the knowledge institutions to develop radical eco-innovations that have higher chances of speeding up decarbonisation of the economic sectors.