Processes and Channels of Technology Upgrading of Knowledge-based Firms in Nigeria

This study examined the processes and channels of technology upgrading of knowledge-based firms (KBF) in Nigeria. The study adapted OECD (2004) classification of knowledge-based industry in Nigeria context such as low technology-based and high technology-based firms. Questionnaires were administered on fifty (50) selected knowledge firms and 72% of the questionnaires retrieved were used for the analysis of this study. The results revealed that low-tech based firms (47.8%) and high-tech based firms (21.1%) upgraded technology through the process of technology spillover; likewise, low-tech based firms (46.8%) and high-tech based firms (52.4%) upgraded technology through the process of technology transfer. The study further indicated that low-tec based firms (46%) and high-tech based firms (81%) upgraded technology through trading channels. Also, low-tech based firms (47.9%) and high-tech based firms (95.5%) upgraded technology through foreign direct investment channels, likewise, low-tech based firms (38.9%) and high-tech based firms (29.9%) upgraded technology through technology development alliance. The study concluded that low-tech based firms in Nigeria need to improve more on their technology transfer process while high-tech based firms also need to improve on their technology spillover technologies through different systems that are customers’ driven.