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An investigation of industrial clusters’ role in regional development in Nigeria: A case study of Ogun State (2000–2020)

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Background of the Study :

Industrial clusters refer to geographically concentrated groups of interconnected firms and institutions that drive innovation and regional development. In Nigeria, Ogun State has emerged as a notable hub for industrial clusters, where proximity among firms facilitates knowledge sharing, cost reduction, and enhanced productivity (Adebisi, 2023). Between 2000 and 2020, policies encouraging clustering—such as special economic zones, infrastructure development, and tax incentives—have been implemented to stimulate local industrialization and regional growth. These clusters contribute to economic diversification and create spillover effects that benefit ancillary industries. However, challenges such as inadequate infrastructure, regulatory constraints, and limited access to finance continue to impede the full potential of these clusters. This study examines how industrial clusters in Ogun State have influenced regional development by analyzing indicators such as employment generation, technological innovation, and investment flows. The findings will provide insights into the effectiveness of cluster-based policies and suggest measures for optimizing their contribution to sustainable regional development (Chukwu, 2024; Okonkwo, 2025).

Statement of the Problem

Despite supportive policies, industrial clusters in Ogun State have not fully translated into robust regional development. Infrastructural deficits, regulatory barriers, and limited financial access constrain the growth potential of clusters, reducing their positive spillover effects (Ibrahim, 2023). This discrepancy between policy intentions and practical outcomes calls for a detailed investigation into the factors that hinder the effectiveness of cluster-based development strategies. This study aims to identify these constraints and evaluate the overall impact of industrial clusters on regional development, thereby informing policy adjustments that could enhance their effectiveness (Adeniyi, 2023).

Objectives of the Study:

1. To assess the impact of industrial clusters on regional development in Ogun State.

2. To identify the challenges hindering cluster effectiveness.

3. To propose policy recommendations for optimizing cluster benefits.

Research Questions:

1. How do industrial clusters contribute to regional development?

2. What are the key obstacles limiting their effectiveness in Ogun State?

3. What measures can enhance the role of industrial clusters in regional growth?

Research Hypotheses:

1. H1: Industrial clusters positively influence regional development.

2. H2: Infrastructural and regulatory challenges hinder cluster performance.

3. H3: Policy enhancements improve the developmental impact of industrial clusters.

Significance of the Study (100 words):

This study provides vital insights into the role of industrial clusters in fostering regional development in Ogun State. Its findings will help policymakers and industry leaders to better leverage clustering strategies for economic diversification and sustainable growth. Recommendations derived from the research are expected to inform targeted policy interventions that boost the competitiveness and productivity of clusters (Adebisi, 2023).

Scope and Limitations of the Study:

The study is limited to examining industrial clusters and their impact on regional development in Ogun State, focusing exclusively on cluster dynamics and associated economic indicators.

Definitions of Terms:

1. Industrial Clusters: Geographically concentrated groups of interconnected companies and institutions.

2. Regional Development: The economic growth and improved living standards within a specific geographic area.

3. Ogun State: A Nigerian state serving as the case study for industrial clustering.

 





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