Innovation – complex but inevitable (7)

Experience has shown that there is no single formula or recipe for building a strong S&T capacity in any nation. Most nations, however, have developed various policies over time in order to build their capacity and capability. Since S&T programmes would always differ in terms of technical content and details, it has been observed and widely reported that successful programmes focus on core issues such as promotion of entrepreneurship, adaptation and adoption of existing technologies, and promotion of interaction among public institutions, academia and the private sector. Success in the innovation endeavour will require continuous process of institutional learning by government agencies that create and administer S&T policies and programmes, including industrial research laboratories, tertiary institutions and firms that create and use knowledge.

In view of the economic diversification agenda of government, it would be worthwhile if the Federal Institute of Industrial Research, Oshodi (FIIRO) after due consultation with the industry provides useful inputs for adoption and adaption in “food processing, agro-allied, textiles, pulp and paper design and fabrication of prototypes, microelectronics, and information services”. Thus, we would not have a situation where “research breakthroughs” are yet to be adopted by local entrepreneurs and other investors. The Project Development Institute (PRODA), Enugu, would need to work with firms in the industry to provide technological gap into design and fabrication of mechanical, electrical, and electronics equipment. Other research institutes that can assist manufacturing companies in sourcing raw materials and bridging technological gaps in the view of this writer are the Raw Materials Research and Development Council (RMRDC),

Nigerian Building and Road Research Institute (NBRRI) and the National Institute for Chemical Research and Technology (NICRT), amongst others.

In order to balance the natural resource curse that has bedevilled the nation for several decades, Nigeria has to build appropriate S&T capacity so that local enterprises have the ability to produce and export quality and cheaper goods and services, while firms must have the skill to look inward in order to substitute local raw materials for those imported in the face of scarce foreign exchange.

For firms to achieve innovation in Nigeria, there must be interaction between researchers and the manufacturing industry. That is, all policy decisions on industrial research made by the Federal Ministry of Science and Technology must compulsorily have links with the productive sector and other ministries such as the Federal Ministry of Trade, Industry and Investment and those that formulate and execute government’s economic policies. Again, this is a humble view of the writer and possibly that of some Nigerians who know that innovation is a complex endeavour. Potential users of research inputs must be involved right from inception of research projects to their logical conclusion and utilization. Simply, government institutions established to support industry cannot continue to spend money or take decisions on projects that will not benefit firms.

Now that it is increasingly difficult for government to meet its financial obligations at the federal level, available funds must be tied to innovation and not R&D. For instance, relevant research institutes that will assist local manufacturers to improve their local content rating in terms of components produced must be encouraged to enable automobile policy of the federal government attract more investments and create jobs. The same wisdom applies to the agricultural policy. As there is scarcity of foreign exchange now, the chances are high that there will be accidental pressures on our research institutes. I hope these research institutes are able, willing and ready to cope with the tasks ahead of them.

It is not bad importing goods from abroad but you must equally produce cheaper goods of acceptable quality and export them to earn foreign exchange. What a nation imports and exports matters in a competitive world. The culture of importation that has made some importers who claim to be “manufacturers” to import toilet soaps from China to Nigeria needs to be examined. This is because once these imported products arrive the shores of Nigeria, they are branded as “made in Nigeria”. Maybe those “manufacturers” have to resort to this business tactics for survival to enable them avoid illegal demands and excesses of some agencies in Nigeria. These are agencies established to enforce regulations and ensure that business thrives in the country. Perhaps it is the absence of appropriate legislation that has not encouraged manufacturing concerns to invest substantially in local production even when an innovative policy exists. It could also be argued that when there is an innovation policy, it has not attracted the expected level of investment as a result of bottlenecks in relevant ministries, departments and agencies coupled with frequent and arbitrary policy reversals. Some firms are equally disinterested in adaptation of imported technologies as it is cheaper for them to import cheaper goods and services from abroad.

From the above, it is advisable that the federal government understands the economic performance of firms operating in the formal sector within the country. Such understanding will enable the formulation of innovation policies that are appropriate to the nation’s level of economic development. In a country where most firms are not performing well, it would not be expected to have a policy that compels all manufacturing firms in that nation to carry out R&D as this shows lack of understanding by policymakers of complex issues involved in the process of generating innovation. Even in highly developed economies it is not all firms that invest in R&D. The risk and uncertainty exist throughout the innovation process no matter the sophistication of the business environment, relevance of extant regulations, quality of technical staff or market structure. The degree of risk varies, however, with the type of innovation. With all said, this writer is optimistic that our global innovative index will improve in years to come if policymakers understand that complex interaction exists among industry, society and research institutes. (Concluded).

MA Johnson