STIMULATING INNOVATION AMONG SMEs IN AN INFORMAL CONTEXT: THE ROLE OF INDUSTRIAL CLUSTERING

The focus of this research is to examine the role of industrial clustering in stimulating innovation among SME operators. A sample size of 65 owners/managers of technology-based small and medium enterprises were surveyed through the use of structured questionnaire. Linear and standard multiple regression were adopted in analysing the research instrument. The statistical analysis revealed that industrial clustering is an essential determinant of new product creation, product innovation and process innovation as patts of SMEs activities. Therefore, it is recommended that SMEs in Nigeria strengthen clustering activities with special lenses on issues tliat enhance new product creation, achieve higher levels of product innovation and continually ensure process innovation