Drivers of eco-innovation in the manufacturing sector of Nigeria

This paper contributes to the empirical literature on the drivers of eco-innovation within the context of a developing country. It explores the dynamics of the determinants of eco-innovation in the manufacturing sector of Nigeria. Virtually all the major manufacturing firms in Nigeria generate electricity through diesel-powered plants with implications for cost of production and greenhouse gas emissions. Meanwhile, eco-innovative manufacturing firms have the potentials to decouple economic growth from excessive resource use and environmental pressure. The paper investigates the determinants of eco-innovation in the manufacturing sector of Nigeria based on empirical data from the Nigerian innovation survey. The econometric estimations find strong support for innovative organizational strategies, the need to meet regulatory standards and access to formal sources of knowledge as drivers of eco-innovation. While eco-innovative manufacturing firms are usually more technical and highly innovative, determinants of both products and process eco-innovations are heterogeneous. The paper highlights policy recommendations for enhancing firm's green competitive advantage in a latecomer economy.