Clustering and Innovation in the Auto-mechanic Industry in Nigeria

Abstract

This study determined the effect of clustering on innovation in the auto-mechanic industry in south-western Nigeria. It involved 13 auto-mechanic villages (clusters) comprising of 237 master mechanics located within Lagos and Ogun states and 145 master mechanics in Osun state stand-alone mechanic workshops. The cluster mechanics were purposively selected while the stand-alone ones were randomly chosen. The selected places were auto-mechanic villages in Ikeja, Agege, Isolo, Onigbongbo and Ojokoro local governments (LGs) in Lagos state. The Ogun state mechanic clusters were located in Ijebu Ode, Sagamu, Odogbolu and Odeda LGs, while the Osun stand-alone workshops were located in Osogbo, Olorunda, Awo and Egbedore LGs. The research instruments employed were questionnaires, interviews and personal observations. The results obtained showed that the master mechanics within clusters were generally more educated than their stand-alone counterparts. The cluster mechanics recorded higher frequencies of modifications and improved working techniques than the stand-alone mechanic workshops. There were significant differences (p < 0.05) between the stand-alone and clustered firms in terms of innovations for all the years under study.