Knowledge Sharing and Innovation as it affects the Local Content Policy in the Oil and Gas Industry in Nigeria (original) (raw)
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While studies have examined the nexus between knowledge and innovative performance, the literature from the context of developing countries is very scant. This study thus examines which knowledge-intensive activities influence the propensity of mining firms in Nigeria to implement either product innovation, process innovation or both kinds of innovations. The study explored 106 purposively selected mining firms in Nigeria to check the effect of knowledge on the prevalence of innovation in the industry. Using a questionnaire administered to the chief executive officers/most senior managers of the firms, the study identified six main knowledge indicators for the mining industry which were regressed against indicators of technological innovations. The study found that while R&D activities were important for product innovation, acquisition of machinery, equipment, hardware and software were the principal drivers of process innovation. The knowledge-based activities common to both innovation types were acquisition of external knowledge/ technologies, learning, knowledge exchange and training as well as other activities like feasibility studies, market research, continuous improvement, business process re-engineering, tooling-up, routine software upgrades, amongst others. The study concludes that certain knowledge-intensive activities are important for different kinds of innovations in the firms.
CHALLENGES FACING NIGERIAN LOCAL CONTENT IN OIL AND GAS INDUSTRY
ABSTRACT The petroleum industry in Nigeria is the largest industry and mean generator of Gross Domestic product (GDP) in the West African Nation. Inspite of the huge financial investment made by the Nigerian government in the oil and gas industry of the economy, it has not resulted in significant benefits for most Nigerians. The local content (LC) in the industry is still very low as over 60% of the major activities, e.g exploration, drilling, production, well intervention and service provision remain primarily controlled and managed by multi-national oil companies. Only minor contract have been awarded to local contractors. Several challenges, ranging from infrastructural development, political stability, Good investment climate, project Financing, Transparency, High Educational Standards, Legal Policy, Resource Management, Research & Development, Fiscal Policy, Environmental Policy are some of the factor impeding the set target by the Federal Government to achieve 70% in 2010, its local content drive in the oil and gas industry. This paper identifies the challenges for the ineffective implementation of the Nigeria content policy through the use of Questionnaires and developed a framework that will address holistically the factors needed to promote active participation of Nigerians in oil and gas activities without compromising standards in order to stimulate growth of indigenous capacity. Countries that have achieved success through local content development were also highlighted in this paper. KEYWORDS:LocalContent,Infrastructure,Transparency,Corruption,ProjectFinancing, PoliticalStability
Since the 1960s till date, the Nigerian Oil and Gas Industry have continued to play a key role in the country’s economic growth and development. The sector generates about 95 percent of total export revenue and 80 percent of her total national income. In addition, it expends about $8 billion annually in servicing its operations. Sadly, a significant proportion of this amount is paid to foreign contractors for services like fabrication and engineering procurement; resulting into capital flight and leaving very little to developing the country’s industrial base. Similarly, the government introduced the ‘Local Content’ (LC) policy, aimed at championing the course for higher indigenous participation in the sector and value addition for the nation. One of the major thrusts of the policy was to promote higher participation of Small to Medium-sized firms within the industry. We present findings from multiple-case study conducted on two SMEs, with the aim of exploring the policy implication...
Indigenous innovation capability in Sub-Saharan Africa: a review of the Nigerian situation
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Innovation process represents the long wave of value creation and it is the main powerful driver of future economic results of firms and nations. It therefore follows that for nations to compete successfully in the long run, they must innovate; and innovating entails building new competencies, new capabilities and new knowledge. This paper reviews the concepts of Science, Technology and Innovation and discusses the factors militating against the translation of scientific R&D outputs into innovations in Nigeria. The experiences of selected countries are reviewed to specifically highlight the importance of institutional framework and knowledge pool in the process of building indigenous innovation capability for national development. Policies, strategies and structures that could facilitate effective management of R&D and Innovation within the Nigerian knowledge system are suggested. We conclude that for Nigeria to progress in transforming R&D outputs to tangible products and services, appropriate mechanisms must be put in place in the areas of institutional framework, support structure, knowledge generation, innovation, education and technological entrepreneurship.