Importance of Openness for Production and Innovation in Informal Sector Cluster

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.