Drivers of Eco-Innovation Among Manufacturing Firms in Nigeria

The study examined the drivers of adoption of eco-innovation by firms in Nigeria’s manufacturing sector. Firm-level data from the World Bank Enterprise Survey (ES) and the Innovation Follow-up Survey (IFS) module for 2014/2015 was employed. The factors influencing firm’s decision to adopt eco-innovation were determined using the logit regression model. Evidently, product and process eco-innovation exist among manufacturing firms and these eco-innovations are mostly new to the local market. Demand-pull factors and regulations were major factors that significantly influenced firm’s decision to adopt both product and process eco-innovation. In addition, organizational innovation and technology-push factors influenced firm’s decision to adopt process innovation. Policymakers through collaboration with relevant agencies such as Manufacturers Association of Nigeria (MAN), SMEDAN to organize awareness campaigns on eco-friendly products and health issues for firms, as this will significantly drive the adoption of both product and process eco-innovations. Moreover, organizational innovation needs to be a necessity for firms. These would significantly influence firm’s decision to adopt process eco-innovation. Policies that encourage partnerships and interactions of firms with other actors most especially, private companies and individuals and other stakeholders in the innovation system be developed to encourage adoption of process eco-innovation.