Determinants of Technological Capability of Firms in a Developing Country

Abstract

This paper examined the factors associated with the accumulation of technological capability among metalworking firms in Nigeria. A questionnaire was administered to 200 firms, of which 133 (66.5%) responded. Data were gathered on internal and external factors which are believed to influence capability build-up in the firms. The empirical evidence suggests that prior work experience of the entrepreneur, in-house training of technical staff and networking with the industry association had significant and positive influence on the accumulation of firm-level technological capability. Collaboration between the firms and research institutes was found to be weak. We conclude that firm-specific assets such as entrepreneurs’ training and experience as well as in-house training are highly important for the build-up of technological capability in developing country firms. The relative importance of interaction through the industry association casts some doubt on the relevance of university-industry interactions for these firms.