Manufacturing Response in a National System of Innovation: Evidence from the Brewing Firms in Nigeria

Employing empirical data, this study examines the innovation response of private Nigerian brewing firms to a state-induced crisis. We found that size, ownership, manufacturing skills, and technical affiliation were decisive factors in the innovation success of firms that survived and prospered under a decidedly turbulent industrial environment. State action, which was equally decisive but measured and based on scientific evidence, was accompanied by appropriate incentives and penalties. Firms with superior innovative performance recorded strong economic performance. The large firms with strong technical and financial support from foreign partners were able to tap into wider knowledge bases locally and broad and subsequently prospered.