Role of Small-Scale Industries in the Development of Knowledge-Based Industries in the Federal Capital Territory, Abuja, Nigeria

Abstract

The expansion of knowledge-based industries (KBIs) has become essential to national development strategies worldwide, with small-scale industries (SSIs) increasingly recognised as key players in driving innovation and the dissemination of knowledge. This research investigates the role of SSIs in driving the growth of KBIs in the Federal Capital Territory (FCT), Abuja, Nigeria. Through a survey involving 200 owners and managers of SSIs, the study analysed their roles in knowledge transfer, the adoption of innovations, financial challenges, and partnerships with research institutions. The results indicate that 61% of SSIs participate in knowledge-related activities such as ICT services, training, and consulting, whereas 46% utilise digital platforms to expand their markets. Nonetheless, only 28% engage in collaborations with universities, suggesting weak institutional connections. Key obstacles to more extensive involvement in knowledge-driven activities include financial constraints (74%) and inadequate intellectual property protections (53%). The study concludes that while SSIs are crucial for promoting incremental innovation and the dissemination of knowledge, their effectiveness is hampered by systemic issues. It suggests that improving financing options, strengthening institutional connections, enhancing intellectual property protections, and implementing capacity-building initiatives could better position SSIs in Abuja as facilitators of knowledge-based economic growth.