MAKERERE UNIVERSITY

MAKERERE UNIVERSITY BUSINESS SCHOOL

THE ROLE OF UGANDA INDUSTRIAL RESEARCH INSTITUTE (UIRI) IN
PROMOTING INDUSTRIALIZATION IN UGANDA:
A CASE STUDY OF NAMANVE INDUSTRIAL PARK

BY

AGNES BABIRYE

17/U/12180/PS

SUPERVISED BY

DR. DENNIS NUWAGABA

(ACADEMIC SUPERVISOR)

A RESEARCH REPORT SUBMITTED TO MAKERERE UNIVERSITY BUSINESS

SCHOOL IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

AWARD OF A BACHELOR’S DEGREE OF INTERNATIONAL

BUSINESS OF MAKERERE UNIVERSITY

NOVEMBER, 2020
 DECLARATION
I Agnes Babirye, declare that this research report is my original work compiled from my
independent study at Namanve Industrial Pack and it has never been submitted for any award at
any institution of higher learning.

Signature: …………………...……………… Date: ……………………………………

AGNES BABIRYE

17/U/12180/PS

2
 APPROVAL

This research report by Agnes Babirye has been compiled under my supervision and it’s now
ready for submission.

Signature: …………………...……………… Date: ……………………………………

DR. DENNIS NUWAGABA

(ACADEMIC SUPERVISOR)

3
 DEDICATION
This research report is dedicated to my father Mr. Makumbi Anthony and my grandmother Ms.
Nakigudde Jane whose encouragement, guidance and financial support has enabled me
accomplish my Bachelor’s Degree of International Business.

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 ACKNOWLEDGMENT
Let me start by thanking the Almighty God for having guided and given me strength to carry out
this study. God’s abundant blessings enabled me to source funds which assisted me in collecting
data during the research exercise.

I wish to place on record the contributions of my research supervisor Dr. Dennis Nuwagaba for
his scholarly remarks and professional guidance towards this dissertation. Without his prompt,
constructive and explicit comments in the submission made this study would not have been
completed. I would also like to thank the respondents who willingly spared time and shared their
knowledge during the process of answering questionnaires.

I greatly acknowledge the contribution of my Mr. Makumbi Anthony and my grandmother Ms.
Nakigudde Jane for having supported me financially and morally during my years of studying
also ensuring that my life is a success.

I also acknowledge with gratitude the contributions and co-operation made by the staff of
Uganda Industrial Research Institute (UIRI) especially the marketing officer UIRI Ms.Alinaitwe
Sharon and the staff of the selected industries in Namanve Industrial Park for their willingness to
provide the necessary information that I required for my research. Without their cooperation, this
study would have been impossible to accomplish.

Last, I appreciate in a special way the Knowledge, encouragement and support extended to me
by all the lecturers at Makerere University Business School in Faculty of Marketing and
Hospitality Management. These have adequately guided and equipped me with both theoretical
and practical skills. I would also like to acknowledge the contribution of all my friends at
Makerere University Business School for the advice and other support they rendered to me.

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TABLE OF CONTENT

DECLARATION..............................................................................................................................i
APPROVAL....................................................................................................................................ii
DEDICATION...............................................................................................................................iii
ACKNOWLEDGMENT................................................................................................................iv
TABLE OF CONTENTS................................................................................................................v
LIST OF FIGURES......................................................................................................................viii
LIST OF TABLES..........................................................................................................................ix
LIST OF ABBREVIATIONS..........................................................................................................x
ABSTRACT...................................................................................................................................xi
CHAPTER ONE............................................................................................................................1
INTRODUCTION.........................................................................................................................1
1.1 Background to Study............................................................................................................1
1.2 Statement of the problem......................................................................................................1
1.3 Purpose of the study..............................................................................................................2
1.4 Objectives of the study.........................................................................................................2
1.5 Research questions................................................................................................................2
1.6 Scope of the research study..................................................................................................2
1.6.1 Subject scope........................................................................................................................2
1.6.2 Geographic scope..................................................................................................................2
1.6.3 Time scope.............................................................................................................................3
1.7 Significance of the study......................................................................................................3
CHAPTER TWO...........................................................................................................................4
LITERATURE REVIEW.............................................................................................................4
2. 1 Introduction............................................................................................................................4
6
2. 2 Industrialization.....................................................................................................................4
2.2 Industrialization Uganda........................................................................................................5
2.3 Factors influencing the growth of industries.......................................................................10
2.3.1 Entrepreneurship..................................................................................................................10
2.3.2 Science, Technology and Innovation...................................................................................11
2.3.3 Open Innovation..................................................................................................................13
2.3.4 Triple Helix and Clusters....................................................................................................15
2.3.5 Business Incubation............................................................................................................16
2.1.2 Challenges faced in promoting industrialization................................................................17
2.4 Conclusion..........................................................................................................................20
CHAPTER THREE.....................................................................................................................21
RESEARCH METHODOLOGY...............................................................................................21
3.1 Introduction.........................................................................................................................21
3.2 Research design...................................................................................................................21
3.3 Study population..................................................................................................................21
3.3 Sample size..........................................................................................................................22
3.4 Sampling techniques............................................................................................................22
3.5 Sources of data.....................................................................................................................23
3.5.1 Primary data source.............................................................................................................23
3.5.2 Secondary data source.........................................................................................................23
3.6 Data collection methods......................................................................................................23
3.6.1 Questionnaire.......................................................................................................................23
3.7 Data analysis and presentation.............................................................................................23
3.8 Limitations of the study.......................................................................................................24
CHAPTER FOUR.......................................................................................................................25
PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS......................25
4.1 Introduction.........................................................................................................................25
4.2 Response Rate.....................................................................................................................25
4.3 Background Information.....................................................................................................26
4.3.1 Gender.................................................................................................................................26
4.2.2 Years of service at the selected industries in Namanve Industrial Park.............................27

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4.2.3 Level of Education.............................................................................................................27
4.3 The various activities used by UIRI in promoting industrialization...................................29
4.4 Challenges faced by UIRI in promoting industrialization..................................................34
4.5 Solutions to challenges faced by UIRI in promoting industrialization...............................37
CHAPTER FIVE.........................................................................................................................40
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS.............................................40
5.1 Introduction.........................................................................................................................40
5.2 Summary of the Findings...................................................................................................40
5.2.1 Various activities used by UIRI in promoting industrialization.........................................40
5.2.2 Challenges faced by UIRI in promoting industrialization..................................................41
5.2.3 Solutions to challenges faced by UIRI in promoting industrialization...............................41
5.2 Conclusions.........................................................................................................................42
5.3 Recommendations...............................................................................................................43
5.4 Limitations of the study......................................................................................................44
5.5 Areas for Further Research.................................................................................................44
REFERENCES..............................................................................................................................45
APPENDIX 1: RESEARCH QUESTIONNAIRE........................................................................51

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 LIST OF FIGURES
Figure 1: Showing Years of service at the selected industries in Namanve Industrial Park.........27

Figure 2: Level of Education.........................................................................................................28

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 LIST OF TABLES
Table 1: Showing the composition of the sample frame...............................................................22

Table 2 Response Rate...................................................................................................................25

Table 3: Respondents Gender........................................................................................................26

Table 6: Summary of Descriptive Statistics on the various activities used by UIRI in promoting
industrialization.............................................................................................................................29

Table 7: Descriptive Statistics on challenges faced by UIRI in promoting industrialization........33

Table 8: Descriptive Statistics on solutions challenges faced by UIRI in promoting

industrialization.............................................................................................................................36

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 LIST OF ABBREVIATIONS

AGOA African Growth and Opportunity Act

COMESA Common Market for Eastern and Southern Africa

EAC East African Community

EU European Union

GDP Gross Domestic Product

GoU Government of Uganda

ICT Information and communication Technology

MDGs Millennium Development Goals

MSMEs Micro, Small & Medium Enterprises

NDP National Development Plan

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OECD Organization for Economic Co-operation and Development

SBIR Small Business Innovation Research

STI Science, Technology and Innovation

UBOS Uganda Bureau of Statistics

UIRI Uganda Industrial Research Institute

UPE Universal Primary Education

UPPET Universal Post Primary Education Training

USA United States of America

USE Universal Secondary Education

WTO World Trade Organization

ABSTRACT
The study set out to explore the role of Uganda Industrial Research Institute (UIRI) in promoting
industrialization at selected industries in Namanve Industrial Park. The study was guided by
three study objectives which include; finding out the various activities used by UIRI in promoting
industrialization, to identify the challenges faced by UIRI in promoting industrialization and to
recommend solutions to challenges faced by UIRI in promoting industrialization.
The study adopted a cross sectional research design which looks at an event in its existing
capacity at a time and this approach was used to establish the role of Uganda Industrial Research
Institute (UIRI) in promoting industrialization in Uganda with a major focus on Namanve
Industrial Park.
Data was collected using questionnaire method and was analyzed using descriptive statistics and
presented inform of frequency tables. Findings revealed that the ability of UIRI to support
organization operate in clusters has helped organizations in Namanve Industrial Park to
overcome their growth constraints. The study identified challenges such as failure by UIRI to
extend incubation projects and training to rural areas, lack of market and financial development,

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Long time taken at the incubation period and inability by UIRI to invest much in training
business incubators and solutions to those challenges were suggested.
It was hence concluded that UIRI has tried to promote industrialization in Namanve Industrial
Park but there are still challenges the organization faces which needs to be mitigated so as to
overcome these challenges. Therefore, the study recommends that UIRI should concentrate on
funding these STI activities since they lead to continuous improvement in firms production
processes, adapting their existing product lines, installing entirely new infrastructure and
adopting new technologies that will subsequently result into production of new products that will
guarantee improved industrialization. It is also recommended that UIRI should continue to urge
firms starting firms in Uganda to consider operating in clusters which because it will help them
share or avoid some costs like construction of new roads, easy access to electricity grid line and
water connection among others since industries are located in the same geographical location.
.

CHAPTER ONE
INTRODUCTION
1.1 Background to Study

Industrialization is frequently considered as the replacement of farming and resource

extraction by manufacturing and service activity (Bailey, 2000). Bailey (2000) pointed
out that this transition takes different forms in different places at different times.

According to Mebratu, (2002), industrialization and manufacturing in particular was the

lead sector in fast growing developing countries in Asia and Latin America while it is
lagging in Africa. African governments and Uganda in particular are putting more efforts
into expanding the region’s manufacturing sector on a sustainable basis.
The Uganda Industrial Research Institute (UIRI) is a parastatal company, wholly owned
by the government of Uganda, whose primary objective is to carry out scientific and
industrial research, develop competitive technical services, improve the capacity and
competence of indigenous entrepreneurs to embark on sustainable industrial production,

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 to produce high quality marketable products, for the benefit of Uganda's citizens (World
Bank, 2014). It was established in 2002 by Parliament under the auspices of the
Ministry of Tourism, Trade and Industry (MTTI). UIRI grew out of the East African
Industrial Research Organization (ESIRO), which was run by the now-defunct East
African Community (EAC). UIRI is currently spearheading the development and
implementation of a Machining Manufacturing Skills Training center at the Kampala
Industrial Park Namanve. The Institute has trained, supported and equipped over 50
business incubatees whose products are consumed both locally and internationally. Some
of the products include; Livara Cosmetics, Mega Milk, Infinity Fish Products, Bella
Wines among others.

1.2 Statement of the problem

Despite all efforts by Uganda Industrial Research Institute (UIRI) to support
organizations through activities such as; adding value to products of local companies,
funding business startups through giving them equipment and providing basic training
skills. There are still reports been reports on low level of industrialization. In Uganda
organizations supported by UIRI amongst parks like parks like in Namanve Industrial
Park are not also functioning since 2013. Statistics shows that only 30% of the industries
in the park are operating and the rest are not. (Okello, 2018) Those that are operating also
complain of the high cost of training equipment and low funding by UIRI. There is a low
level of industrialization in the park and also the country at large. The purpose of the
study is to investigate the role of UIRI in the promotion of industrialization in Uganda.

1.3 Purpose of the study

The purpose of the study was to examine the role of Uganda Industrial Research Institute
(UIRI) in promoting industrialization in Uganda with a case study of Namanve Industrial
Pack.

1.4 Objectives of the study

i. To find out the various activities used by UIRI in promoting industrialization
ii. To identify the challenges faced by UIRI in promoting industrialization
iii. To recommend solutions to challenges faced by UIRI in promoting industrialization

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1.5 Research questions
i. What are the various activities used by UIRI in promoting industrialization?
ii. What are the challenges faced by UIRI in promoting industrialization?
iii. What are the solutions to challenges faced by UIRI in promoting industrialization?

1.6 Scope of the research study

1.6.1 Subject scope
The study focused on finding out the role of Uganda Industrial Research Institute (UIRI)
in promoting industrialization in Uganda.

1.6.2 Geographic scope

The study was carried out at Namanve Industrial Park located in Kira Municipality in
Wakiso District. This area was selected because it has more than 40 industries in which
UIRI has promoted.

1.6.3 Time scope

This study covered a period of nine months that is from February 2020 to September
2020 because it was long enough to collect the required data despite the Covid19 out
brake. However back period years were taken relevant for references.

1.7 Significance of the study

i. The study helped the Academicians to use it as future reference for other research.
ii. The study helped UIRI identify possible strategy that they can used to promote
industrialization in Uganda.

iii. The information from the study can helped the companies to identify the role of UIRI in
promoting industrialization.
iv. The study was in partial fulfillment of Bachelors Degree of International Business.

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 CHAPTER TWO
LITERATURE REVIEW
2. 1 Introduction
This chapter reviews the existing literature on the role of Uganda Industrial Research
Institute (UIRI) in promoting industrialization in Uganda.

2. 2 Industrialization

Industrialization is frequently considered as the replacement of farming and resource

extraction by manufacturing and service activity (Bailey, 2000). Bailey (2000) pointed
out that this transition takes different forms in different places at different times.

According to Mebratu, (2002), industrialization and manufacturing in particular was the

lead sector in fast growing developing countries in Asia and Latin America while it is
lagging in Africa. African governments and Uganda in particular are putting more efforts
into expanding the region’s manufacturing sector on a sustainable basis.

Industrialization in Uganda will depend on using the resource base and hence on
equipping farmers, women and youth to understand the technical and quality
requirements of commercial production. Industrialization process efforts include
industrial investment recruitment, entrepreneurial and small business development, and
business retention and expansion programs. In this respect, there are many existing
programs and new initiatives in the country promoting and supporting agricultural
production and industrial development but tend to suffer from a number of weaknesses
(Ministry of Tourism, Trade and Industry, 2008).

In particular, institutions that work with the private sector are not able to provide services
that support new sources of growth or enable private sector to compete in global markets.
Typically Micro, Small & Medium Enterprises (MSMEs) find it difficult to do research
and development; add value to their products and commercialize their results in markets
(innovation) as fast as they should because of high transaction costs. For Micro, Small &
Medium Enterprises (MSMEs) to be dully competitive in a competitive economic

16
 environment requires that they develop internal capabilities to effectively assimilate, use
and adapt product and process technologies for their businesses to survive sustainably.

2.2 Industrialization Uganda

Uganda is an agro-based land locked country with a population of about 30 million
people. It is well endowed with natural resources and salubrious climate, but the
industrial profile is still dominated by agro-industry and not innovation led. Facing the
challenges of poverty alleviation, a high population growth rate, climatic change and
environmental impacts among others, Uganda identified exploitation of natural resources
and value addition as one of its main strategies to transform the country and reduce
poverty (Ministry of Tourism, Trade and Industry, 2008).

With her vision of transforming the society from a peasant to a modern and prosperous
country within 30 years, (GoU-National Development Plan, 2010), the main focus is
private sector driven economy. The government of Uganda also signed up to the
Millennium Development Goals (MDGs) under the United Nations Millennium
Declaration. The Millennium development Goals include: 1) eradication of poverty; 2)
achieving universal primary education; 3) promoting gender equality and empowering
women; 4) reducing child mortality; 5) improving maternal health; 6) combating malaria,
HIV/AIDS and other diseases; 7) ensuring environmental sustainability; and
8)developing a global partnership for development (Ministry of Finance Planning and
Economic Development, 2004). The government is therefore aggressively promoting
private sector development, value addition, employment creation, country’s
competitiveness improvement and industrialization to levels associated with middle
income countries.
Uganda is a member of East African Community (EAC) with a market of over 120
million people with access to the sea. Even more attractive is being a member of the
Common Market for Eastern and Southern Africa (COMESA) with over 400 million
people (Ngwenya & Munalula, 2010). Furthermore, it’s well advanced trading partners
and international markets that include mainly World Trade Organization (WTO) member
states, European Union (EU) countries, Asian countries and United States of America
(USA)/ African Growth and Opportunity Act (AGOA). The country therefore highly

17
desires value added agriculture, value addition industries and investors/entrepreneurs to
take advantage of such opportunities.

Industrial development is fundamental for economic growth. Both theoretical and

empirical literature shows that a high degree of efficiency in the industrial sector can
contribute to increased production, product innovation, high value manufactured ex- ports
and high foreign earnings. It is through industrialization and innovation that wealth can
be created and higher incomes realized from natural resources and raw materials
transformation. Business incubators can promote innovation and accelerate
industrialization through encouraging business start-ups, information and technology
transfer, commercialization of research results, and implementation of science,
technology, innovation and industrial development policies.

The country is well endowed with natural resources and a healthy climate. Although,
there is abundance of raw materials, they are not exploited and effectively utilized. The
industrial sector occupies a central position in the Government’s vision and the policy
actions are geared towards economic and social transformation. The industrial sector is
contributing 24% of the country’s Gross Domestic Product (GDP), while agriculture,
services and others contribute 22%, 48%, and 6% respectively (Uganda Bureau of
Statistics, 2010). The relative small share of industry’s contribution and the larger share
of services are uncharacteristic of a low- income country in terms of value added and
employment. The economy is predominantly agricultural and heavily reliant on the
export of primary raw commodities with a relatively small industrial sector whose share
of Gross Domestic Product (GDP) has increased steadily over the past decade through
expansion, diversification and establishment of new industries.

Apparently, the manufacturing sector in Uganda has difficulties realizing the potential for
innovation, productivity improvement and sectorial growth (product diversification, and
market penetration). These inadequacies undermine the country’s ambition to
industrialize and the competitiveness of industrial and related sectors in Uganda. The
basis for Uganda’s future prosperity and its ability to invest in the improvements desired
will depend on the competitiveness of its existing and future industries as well as strong

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policy implementation capacity. This can only be done by advancing knowledge, value
addition, promote high performance and governing practices, science, technology and
innovation, as well as building the skills of the manufacturing workforce.

In Uganda, the industrial sector is dominated by Micro, Small & Medium Enterprises
which accounts for 95% of the entire sector and employs more than 2.5 million people.
The Micro, Small & Medium constitute 90 percent of the private sector, and are very
dynamic with 80 percent being located in urban and peri-urban areas country wide. They
are largely involved in trade, agro- processing, and small scale manufacturing. Micro,
Small & Medium Enterprises represent one of the most viable vehicles for sustainable
grass-roots economic growth in the country (GoU, 2010).

The New Policy Framework and investment priorities outlined in the recently published
National Development Plan (NDP) are expected to increase the pace of structural
transformation of the economy. The current national industrial policy also spells out
aspects of national development and proposes several interventions targeted at improving
the performance and contribution of the industrial sector. The policy focus includes:
Extracting and developing natural domestic resource based industries such as petroleum ,
cement, and fertilizer industries; and promoting competitive industries that use local raw
materials, Agro-processing; focusing on food processing , leather and leather products,
textiles and garments, sugar, dairy products, and value addition in niche exports,
Knowledge based industries such as Information Communication Technology, call
centers, and pharmaceuticals that exploit knowledge in science, technology and
innovation, Engineering for capital goods, agricultural implements, construction
materials, and fabrication/ Jua Kali operations.

Under the economic priorities in the recently launched NDP was enhancing economic
development opportunities and not only in major urban centers but throughout the
country. Towards this goal, the government is developing an industrial park in every
regional center to support investors with work spaces, serviced with the necessary
facilities such as electricity, road networks and water. So far, development of 25 parks is

19
in progress, with the three Kampala industrial and business parks located in Namanve,
Luzira and Bweyogerere.

Generally countrywide, the government is working to improve the road network, energy
supply, Information and communication Technology (ICT) and much improvement in
water supply. Uganda has in addition shown a comparative advantage in providing
education services in the region. For instance, Uganda has one of the top ranked
universities in Sub-Saharan Africa excluding South Africa, Makerere University. There is
an advantage of highly educated and trained labor force, with availability of land for both
industrial and agricultural development.

However, with the comparative advantages mentioned above, Uganda is still con-
strained from manufacturing of capital goods and services due to weaker business
environment, high costs of infrastructure and high trade costs. To this effect, attention
should be given to human resource development; skills and technology development for
components of value chains; innovative institutions and services; provision of efficient
infrastructure services, fostering regional integration and coordination, rein- forced
financing and risk mitigation mechanisms; and enabling policies.
It is worth noting that Ugandan population growth rate is rapidly expanding and
accessibility to education continues to improve, employable citizens being churned out of
the education institutions overflowing the job market, hence the rise in unemployment.
Universal Primary Education (UPE) was formally launched in Uganda in 1997 and has to
date resulted in the enrollment of over 8 million pupils from Primary One to Primary
Seven (Uganda Bureau of Statics, 2010). In addition, the government also commenced
the Universal Secondary Education/ Universal Post Primary Education Training
[USE/UPPET] Programme in 2006 and the rate of transition from primary to post
primary has increased by 30%. The secondary school enrollment is over One million
from Senior One to Senior Six.
The government policy to liberalize the education system has led to an increase in the
number of private higher learning institutions. Uganda has a total of 27 universities, out

20
which 5 are publically owned and 22 are privately owned while the total number of
institutions is 139 including universities, colleges and other tertiary (Non-University)
institutions.
Due to the increase in the number of higher education and tertiary institutions, more
graduates are getting out of these institutions. With the government’s policy of focusing
on disciplines key to national development, the enrollments in science and technology
has continued to rise, for instance there was a 5 percent increase rate from 2005 to 2006
(National Council of higher Education, 2007). There is need for a serious effort to have
internships with the labour market and practical training in the world of work. It is
therefore imperative for higher education institutions and the economy to develop
mechanisms for continuous and sustainable interface between institutions, R&D, and the
market.

In spite of the commendable economic performance, the country continues to face some
challenges which have undermined achieving much faster economic growth and socio-
economic transformation. In particular, although the industry sector now ac- counts for
24 percent of GDP, industrial development in Uganda is still faced with inter alia, the
following constraints of; Inadequate technologies for the processing of agricultural and
mineral products, Inadequate industrial institutional support services for the development
of a competitive industrial sector, Lack of entrepreneurship development and MSMEs
support institutions, Limited scope and linkages for forward and backward integration of
industries, Lack of engineering industries, especially industries producing capital goods,
intermediate goods, spare parts and components, all of which have restricted Uganda’s
choice of technologies for industrialization, in particular for product design, production
and maintenance know how, Inadequate skilled industrial human resources including
managerial and critical skills such as entrepreneurial capabilities, engineers,
technologists, and technicians, Inadequate infrastructure conducive for industrial
development and utility services, especially insufficient energy supply, poor road
networks, lack of railway networks, little piped water for production, High cost of
accessing capital and low technology development; all of which contribute to the high
cost of production for domestic industries and are barriers to industrialization.

21
 The industrial sector is for instance contributing 24% of the country’s GDP, while
Agriculture, services and others contribute 22%, 48%, and 6% respectively (UBOS,
2010) compared to Tanzania with 24.2% industry sector contribution to GDP, (United
Republic of Tanzania, 2010). The low contribution of the industrial sector to the annual
GDP is attributed to slow growth in the manufacturing sector. With the need to change
the mindset of Africans and Ugandans in particular with respect to doing business and
work attitudes, business and technology incubators will contribute to addressing the
above constraints.

2.3 Factors influencing the growth of industries

2.3.1 Entrepreneurship
Entrepreneurship is considered as an approach to management, defined therefore as a
process by which individuals either on their own or inside organizations – pursue
opportunities without regard to the resources they currently control in an innovative, risk-
taking and proactive manner (Brown et al. 2001; Todorovic, 2006)

From the above definitions, entrepreneurship covers an individual’s motivation and

capacity independently or within an organization to identify an opportunity and to pursue
it in order to produce new value or economic success. Entrepreneurs pursue opportunities
to grow a business by changing, revolutionizing, transforming or introducing new
products or services. (Davidsson et al., 2006).

International literature suggested that operating in clusters may help small enterprises to
overcome their growth constraints (Andersson et al., 2004; Solvell, 2009). Creating
favorable conditions for entrepreneurship does indeed help the process of
industrialization, and business incubation focusing on national/regional strengths through
clustering and networking is believed to help small enterprises grow and contribute to
industrialization. Therefore small enterprise development has been linked to the
industrialization process (Romijn, 2001).

What is needed thus is to create favorable conditions to achieve the above objectives.
Facilitating entrepreneurs will contribute to industrial development which is a key role of
the developmental state. The emergence of the cluster based development strategy termed

22
 as “new innovation system” based on the cooperation among universities (research
institutions), industry and government has been reported to have brought a wide range
of support services worldwide for development of knowledge based businesses, with
linkages to universities, research institutes, venture capital and international joint
ventures. Clusters affect competitiveness within countries as well as across national
borders (Porter, 2008).

The major problems in Africa such as; inadequacy of infrastructure and skilled industrial
human resource, lack of technological capacities (industrial, technological information
and innovation, low investment or the inability to exploit and process immense natural
resources), and technological knowledge all contributed towards the down turn of
industrial production throughout the 1980s, 1990s and 2000s. The industrialized countries
success is explained from history to have lied mainly in their ability to learn how to
improve performance in a variety of fields, including, macro-economic environment,
institutional development, technological adaptation, competitive and productive
infrastructure development, use of natural resources, organization, markets, and their
strong focus on improving their skills as a way to solve problems and competitiveness.

2.3.2 Science, Technology and Innovation

Science and technology are essential tools in meeting development goals, especially those
contained in the United Nations Millennium Declaration (United Nations, Economic and
Social Council, 2009). Science, Technology and Innovation (STI) activities have been
one of the driving forces of economic and social change for centuries. Similarly, STI
activities have accelerated growth and brought about social change through the
movement of people, goods and services and an increased capacity to generate, transmit
and use STI knowledge (OECD, 2006; Ertl et al., 2007)

Science, technology and innovation are important and necessary to increase

competitiveness, prosperity and quality of life. STI is used to mean the generation, use
and diffusion of all forms of useful knowledge as well as the evolution of associated
institutional arrangements (United Nations, 2003; OECD, 2007; Gault, 2013).
Technology change is at the heart of development worldwide. Technology is hereby
defined as knowledge that contributes to the creation, production and improvement of

23
economically and socially useful products and services. Such knowledge thus relates not
only to physical artifacts but also to forms of organization for their production,
distribution and use.

Technological knowledge relies heavily on the mode of learning, on adapting to new

technologies, on educational systems, the STI as well as the industrial policies, the nature
and composition of the private sector and the capabilities already inherent in the public
sphere. Science, technology and innovation are often considered as important drivers for
economic development and growth. Particularly indigenous capabilities in STI are
essential for the achievement of both short- and long-term development goals.

Innovation is seen as one of the most important ingredients in the success of

organizations, the producer of solutions to problems that are not entirely understood or
widely perceived and the generator of opportunities that may not have existed before or
were not exploited. In other words, it is the process of doing or introducing something
new either an idea or an invention translated into a good or service for economic gains ir-
respective of whether they are new to their competitors, countries, or the world.
Innovation could be subdivided into many types, for example process innovation, market
innovation, product innovation, factor innovation, and even organizational innovation
(Pittaway et al., 2004; OECD, 2005; Hanel, 2007; Mairesse and Mohnen, 2007).

It often involves new technologies or technology applications. It increases the

productivity and choice of goods and services available to the consumer. It cannot
directly be measured but instead be inferred using indicators for example, number of
patents filled, number of new products introduced, or expenditure on Research &
Development. The body of policies, regulations, institutional and infrastructural
arrangements and activities concerned with the creation, acquisition, dissemination and
utilization of scientific and technological knowledge, is generally referred to as the
national Science, Technology and Innovation (STI) system.

Tracking the emergence of new technologies, products or processes can provide valuable
feedback and information on the rate and nature of technological innovation. Therefore,
STI indicators are also key elements in industrialization process. The development and
diffusion of new technologies plays a central role in improved productivity and

24
 competitiveness. While the global economy is being reshaped by new Information
Communication Technologies and by radical technological changes in a number of other
S&T disciplines, understanding the process that leads to innovations and to their
dissemination, their indicators both within and across sectors, is still deficient in
Uganda’s situation.

Uganda, like many other African countries has not been developing primary science,
technology and innovation indicators and to make them accessible to public and private
sector decision makers for social economic development and investment purposes.
Uganda suffers many limitations and inadequacies in relation to institutional
arrangements, infrastructure and policies seriously hindering her ability to innovate in
many directions. Therefore, national plans aimed at the creation of Science, Technology
and Innovation capabilities will need to allocate a great deal of attention to the evaluation
of innovation at the level of business enterprises, the level of individual segments and
sectors. Activities related to enterprise creation, incubation and promotion undertaken in
universities and research centers of a country like Uganda, must receive adequate
attention in initiative design, to improve national STI monitoring capabilities and develop
innovation culture.

2.3.3 Open Innovation

Open innovation can be defined as ‘the use of purposive inflows and outflows of
knowledge to accelerate internal innovation, and expand the markets for external use of
innovation, respectively’ (Chesbrough et al., 2006, 2008). Depending on its business
model, a firm decides whether or not external and internal knowledge is valuable to be
further developed and commercialized into a new business. Open Innovation means that
valuable ideas can come from inside or outside the company and can go to market from
inside or outside the company as well. This approach places external ideas and external
paths to market on the same level of importance as that reserved for internal ideas and
paths to market in the earlier era.

According to Penin (2009), open innovation must encompass three constitutive elements:
(i) Voluntary knowledge disclosure from “participants”; (ii) knowledge being open
(which is equivalent to say that “spillovers are not controllable”, and (iii) continuous and

25
dynamic interactions among “participants” (open innovation means that anybody can
participate and is therefore potentially a participant). There are several advantages that
firms can benefit working in an open innovation style and practices according to Laursen
and Salter, 2005; Vanhaverbecke et al., (2008); Keupp and Gassmann, 2009);-

Innovating firms benefit from early involvement in new technologies or business

opportunities. Open innovation allows innovating companies to sense developments in a
wide range of externally developed inventions by buying minority stakes in (high-tech)
start-ups, participating in venture capital funds, or by providing educational investments
in promising projects at universities or research labs

Innovating firms also benefit from delayed entry or delayed financial commitment. Open
innovation practices offer firms more flexibility about when to start the internal portion
of the innovation process: a company can start exploring the commercial possibilities of a
technology outside initially, via relationships with universities, Small Media Enterprises
and other innovation sources

Open innovation offers firms the advantage of an early exit, and the ability to realize
some value from projects that do not go forward internally. Open innovation is
characterized by the possibility that innovating firms can always license or sell
technologies or spin-off ventures that are not promising enough and/or that do not fit with
their business model or core competencies.

Open innovation allows firms to benefit from delaying an exit. If the firm chooses to
syndicate its investment in the venture and invite other investors in, the firm also benefits
from ‘other people’s money’ supporting the development of the venture. This is capital
efficient for the firm, though it does relinquish a substantial degree of strategic control to
the outside investors. In this way, the open innovation paradigm allows firms to maintain
flexibility while keeping their different venture options open.

Therefore, for the developing countries such as Uganda that are disadvantaged in terms of
science, technology and innovation activities (low level and low value-added industry
position) adapting open innovation or collaborative innovation practices would enhance
intentions for industrial transformation.

26
2.3.4 Triple Helix and Clusters
The ‘Triple Helix’ is a spiral model of innovation that captures multiple reciprocal
relationships at different points between industry, academia and the public sector in the
process of knowledge capitalization and social development (Etzkowitz, 2002;
Gunasekara, 2006; Jerome et al., 2010; Simba, 2010). The triple helix denotes the
university-industry-government relationship as one of the relatively equal, yet inters-
dependent, institutional spheres which overlap and take the role of the other. Emerging
literature that examines university-industry-government networked infrastructures
supports these triple-helix collaborations as the key to improving the conditions for
innovation, productivity, and wealth in a knowledge-based society (Leydesdorff, 2001;
Campbell, 2005).

The university is a firm founder through incubator facilities; industry is an educator

through company universities and government is a venture capitalist through Small
Business Innovation Research (SBIR) and other programs. Innovation clusters are the
linkages, interactions, relationships and development of different but inter-dependent
entities (i.e. education, research, and development, industries, financial institutions) to
form a virtuous circle of innovation and entrepreneurship. A cluster is a geographic
concentration of competing and cooperating companies, suppliers, service providers, and
associated institutions (Solvell, 2009; Ketels, 2009).

Clusters constitute important knowledge spillovers for businesses. Clustering is generally

defined as a process of firms and other actors co-locating within a concentrated
geographical area, cooperating around a certain functional niche, and establishing close
linkages and working alliances to improve their collective competitiveness. The physical
proximity of the factors outlined above furthers the creation of formal and informal
linkages and networks among firms, higher education and research institutions, financial
establishments, public agents and other local organizations, where in- formation can
easily flow and propagate. Clustering is seen as a key means of driving regional
development by building private and public sector partnerships to mutual benefit through
government and regional investment in innovation incubators, science parks and cities,
and technology transfer offices (Slovell et al., 2003).
27
2.3.5 Business Incubation
Business Incubation is a unique and highly flexible combination of business development
processes, infrastructure and people, designed to support entrepreneurs and nurture and
grow new and small businesses, products and innovations through the early stages of
development and/or change (Rice, 2002; Philips, 2002). There are several definitions and
approaches to business incubators available in academic literature and many have been
adopted by industry associations and policy makers in different countries reflecting local
cultures and national policies. However, the general definition of business incubator by
the National Business Incubation Association as mentioned on their website
(www.nbia.org) is:

Business incubators nurture the development of entrepreneurial companies, helping them

survive and grow during the start-up period, when they are most vulnerable. A business
incubator’s main goal is to produce successful firms that will leave the program
financially viable and freestanding. The most common goals of incubation programs are
creating jobs in a community, enhancing a community’s entrepreneurial climate,
retaining businesses in a community, building or accelerating growth in a local industry,
and diversifying local economies.

Despite the efforts to develop a general definition for business incubation, there are still a
variety of models of business incubators. In business incubation, there is some degree of
Government, Academia and industry involvement (Chandra, 2007). The most common
classification of business incubators is based on funding. There are those that are: (i)
public funded such as those set up by government agencies in
science/technology/business parks, research institutions and universities (ii) privately
funded such as those in privately run organizations and enterprises. Recent studies
introduced the mixed-models of business incubators such as public-private partner- ships
incubators (Lalkaka, 2000).

The term ‘incubator’ was derived from the fundamental meaning of the term: the
artificial nurturing of the chicken egg in order to hatch them faster in a sheltered
environment. The same hatching concept is applied to the incubating of companies; it
speeds up new ventures’ establishments and increases their chances of success. An

28
 incubator thus hatches new ideas by providing new ventures with physical and intangible
resources (Becker & Gassmann, 2006).

Business incubation concept rests on the argument that if weak but promising new
businesses with a potential of growing into successful ventures can be identified at an
early stage and helped, failures, loss of resources can be reduced and more ideas can be
developed (Albadvi & Saremi, 2006). Business incubation originated in the U.S in the
late 1950s in an effort to re-use abandoned or underutilized buildings, create wealth and
employment and contribute to local and regional economic development (Wiggins &
Gibson, 2003; Hackett & Dilts, 2004). However, the concept has evolved over time
contrary to what was originally claimed.

Incubators are of basic importance in the process of establishing links between research
and business. They provide support services to start-up firms, “temporarily’; enabling
young entrepreneurs with a scientific background to build up their business management
know-how and develop their innovative businesses. Incubation takes place in both
physical and virtual incubators. The later use the internet to provide support services to
the enterprises, which could not be located in the limited physical space available for
start-ups. Across the incubator movement, the management problems of incubator clients
are met with the delivery of a variety of value-added management services. The driving
force (in incubator programs) is the supply of expertise, capital and support that comes
from assistance activities directed towards filling the voids in entrepreneurs’ abilities
(Duff, 2004).

2.1.2 Challenges faced in promoting industrialization

The performance of the manufacturing sector has further been affected by low capital
injection.  Before the Chinese, local and foreign investments in industries and
infrastructure had been on the decline. This could be attributed to East Africa’s poor
business environment, or politics. (Master Plan Study for Kenyan Industrial
Development, 2018)

The entry into the local market of substandard, counterfeit and contra-band products has
unfairly reduced the market share for locally manufactured products. Counterfeit trade

29
has also discouraged innovation efforts, reduced the government revenue base and some
are a health- hazard to consumers. (National Industrialization Policy, 2012)

One can also not ignore competition from other countries for the East Africa Market
exemplified by the current battle between the Sugar manufacturers and COMESA to
uphold the ban stopping other COMESA countries from entering the East Africa sugar
market. If they are allowed with the prices they offer, East African sugar industry will be
all but done.

Informality and poor sustainability of most local initiatives hamper industrialization.

Majority of the micro and small industries are informal, rural based and have a high
mortality rate. Due to the informality and concentration of formal firms in major towns,
there are weak linkages, inadequate Business Development Services and subcontracting
arrangements with the medium and large firms. In addition, the growth and graduation of
the firms in this sector has not fully realized its potential due to a number of factors such
as poor market access, restrictive legislation and regulation, high cost of credit, poor
infrastructure and access to land. (Master Plan Study for Kenyan Industrial Development,
2018)

High input costs result in expensive and often low-quality raw materials, rising labor
costs, unreliable and expensive energy. Low productivity levels: Capital productivity in
the East African manufacturing sector is particularly low, compared to regional and
global productivity levels.

Lack of investment in an industrial knowledge base, innovation, research and

development uptake in Manufacturing limits the growth of modern methods of
manufacturing in the country. The lack of knowledge, high cost and fear of change has
led to low technology uptake. Lack of awareness on intellectual property rights hinders
the development, registration and protection of new innovations in the manufacturing
sector. There are limited technical and managerial skills; there is generally poor linkage
between the industry and the training institutions. (National Industrialization Policy,
2012)

Inadequate capacity of industries to meet product quality standards and International

Organization for Standardization certification limits their efficiencies and product

30
qualities. This also makes consumers reluctant to trust these organizations and their
products or services.

Inefficient flows of goods and services: Inefficiency in the local transport and logistics
sector (e.g. port, rail and road transport services), greatly hampers the ability of local
manufacturers to access and be competitive in regional and global markets. (National
Industrialization Policy, 2012)

Weak Public Private Partnerships, the Government policy embraces the Private Sector as
the engine for economic growth. Nevertheless, there is disharmony and a lack of
constructive dialogue between the public and private sectors. This absence of partnership
opportunities has contributed to skewed development initiatives, duplication of efforts
and the development of policies that are not responsive to the needs of the Private Sector.

Uncertainty in politics with unfortunate occurrences like the post-election violence of

2007 and the Westgate terrorist attack destroy industrial infrastructure physically, reduce
morale and also deter foreign investment in Kenya.

Furthermore, the absence of what may correctly be seen as an “Industrialization Culture”

in East Africa has inhibited growth and innovation in the sector. From a historical
perspective there has hardly been any effort in locating national industrialization as a
necessary and important political decision to be made at the highest level. Examples from
other countries indicate how decisive political decisions led many countries to pursue
extremely rewarding Industrialization policies. Japan for instance took the political
decision in the 1960s and despite having no minerals, including oil, has proved to be a
manufacturing powerhouse and an immense economy. (National Industrialization Policy,
2012)

A major problem in Uganda has also been the fact that the operational industrial policies
are contained in many disparate policy documents including Acts of Parliament,
Sessional Papers, development plans and other sectorial policies and strategies some of
which have been reviewed in the foregoing sections. The lack of a harmonized and
clearly defined National Industrialization Policy has therefore negatively affected the
process of industrialization and is compounded by the existence of numerous laws; a

31
 weak legal framework, as well as, overlapping ministerial mandates, all of which have
culminated into an uncoordinated and slow pace of industrialization. Lack of clear
boundaries on the mandates and functions of ministries and agencies has caused
distortions in the value chain, weak sectorial policies, overlaps and conflicts in policy
implementation. (National Industrialization Policy, 2012)

The rising levels of poverty coupled with the general slowdown of the economy has
continued to inhibit growth in the demand of locally manufactured goods, as effective
demand continues to shift more in favor of relatively cheaper imported manufactured
items. Goods manufactured elsewhere have also served to deter the stimulation of local
industries. In addition, the high cost of inputs as a result of poor infrastructure has led to
high prices of locally manufactured products thereby limiting their competitiveness in the
regional markets and hampering the sector’s capacity utilization. (National
Industrialization Policy, 2012)

2.4 Conclusion
The literature above concentrates on the level of industrialization in Uganda and the
challenges faced in promoting industrialization; however less was discussed on the role
of UIRI in promoting industrialization in Namanve Industrial Park.

32
 CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction

This chapter presents the methods that were used in the research process. It presents
research design, types of data, data collection methods, study population, sample size,
data analysis and presentation and limitations of study.

3.2 Research design

According to Sarantakos (2005) research design is a blue print or a plan detailing on how
research is implemented. Research design refers to a detailed explanation of how the
researcher intends to conduct the study, specifically, on how the research questions are
addressed. The research design that was used is a cross sectional survey which is a
research design that looks at an issue as it is at that particular time in other wards it
studies an event in its existing capacity at a time. Quantitative data collection method was
also used to establish the role of Uganda Industrial Research Institute (UIRI) in
promoting industrialization in Uganda with a major focus on Namanve Industrial Park.

3.3 Study population

According to Ngechu (2004) target population is a well-defined or specified set of
people, group of things, households, firms, services, elements or events which are being
investigated. Target population should suit a certain specification, which the research is
studying and the population should be homogenous. Mugenda and Mugenda, (2003),
explain that the target population should have some observable characteristics, to which
the research intends to generalize the results of the study. In order to gather the
information required, the study targeted population included various industries in
Namanve Industrial Park which totals to around 140 industries and this include
40 industries which are fully operational, 100 under various stages of development.
However the research only considered 40 industries which were fully functional in
Namanve Industrial Park. From the 40 industries only 280 people were considered to
participate in the research because they were sought to have the required information
about the role of UIRI in promoting industrialization other than the entire population
which population which would give wrong results and costly.

33
3.3 Sample size

Being aware that there would be no significantly better results attained through sampling
of the entire study population, the researcher used a sample of 162 respondents from 280
people selected in 40 industries in Namanve Industrial Park and the sample size
determination adopted from the sample size table determination as guided by Krejcie and
Morgan Table (1970) for sample determination attached on Appendix III. This was used
because it is free from bias and also gives accurate results if the researcher is unbiased
and has capacity to keen observation and sound judgment.(Amin, 2005) The study
involved 22 administrators in 40 industries, 20 managers and 100 employees as shown in
the table 1 below;
Table 1: Showing the composition of the sample frame

Category Number of respondents Frequency Sample size (%)

Administrators 40 22 7.8
Managers 40 40 18.4
Employees 200 100 73.7
Total 280 162 100

3.4 Sampling techniques

Purposive sampling was used to select only administrators and managers from the 40
fully operating industries in Namanve Industrial Park who are knowledgeable about the
role of Uganda Industrial Research Institute (UIRI) in promoting industrialization in
Uganda. The study also involved a simple random sampling whereby 100 employees in
the sample population had an equal chance of being selected thus removing bias. These
methods were appropriate because they enabled selection of informed persons who
possessed vital data that is comprehensive enough to allow gaining a better insight into
problem. In the study respondents were contacted in person, as the researcher wanted
information from respondents of Namanve Industrial Park.

34
3.5 Sources of data
3.5.1 Primary data source
Primary data means original data that has been collected especially for the purpose in
mind (Bishop, 2007). The primary data the researcher collected include numbers and
figures from questionnaires from both the managers and administrators of the 40 fully
operating industries in Namanve Industrial Park and observations that were made.

3.5.2 Secondary data source

The secondary sources of data refer to data collected by a person or researcher other than
the user of the information (Lindstrom, 2010). This study information was collected from
relevant materials and other documented relevant information from the 40 fully operating
industries in Namanve Industrial Park such as available handbooks, annual reports, and
other relevant information from the organization’s website, blogs, journals, newsletters
and other documented materials.

3.6 Data collection methods

These involved methods for primary data collection and secondary data collection.
Primary data collection methods such as questionnaires were used to collect raw data
direct from the field and the study was based on questionnaire.

3.6.1 Questionnaire
Sekaran& Bougie, (2003) defines it as a pre-formulated written set of questions to which
respondents record their answers, usually within rather closely defined alternatives. This
involved designing a set of specific questions intended to collect data from respondents.
The distribution of questionnaires was made to administrators, managers and employees
of the 40 fully operating industries in Namanve Industrial Park following a three (3) likert
scale ranging from Agree, Not sure and Disagree.

3.7 Data analysis and presentation

After data was collected, it was will be analyzed, edited to check for completeness of
analysis, use objectives stated to find out whether the data provides answers to the
questions stated. Data was presented in quantitative statements and tables that were
derived from the analysis process using Microsoft Excel.

35
3.8 Limitations of the study
Financial constraint: the research was expensive in terms of transport fairs,
questionnaires and the entire administration costs.

Insufficient information: Some people did not give sufficient information about their
organization as they claimed it was confidential.

36
 CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS
4.1 Introduction
This chapter presents the data collected from the empirical study; data analysis and
interpretation. The aim of the study was to find out the role of Uganda Industrial
Research Institute in promoting industrialization in Uganda with a major focus on
Namanve Industrial Park following three research objectives which include; to find out
the various activities used by UIRI in promoting industrialization, to identify the
challenges faced by UIRI in promoting industrialization and to recommend solutions to
challenges faced by UIRI in promoting industrialization. This chapter is further divided
into three parts; the response rate, background information of respondents, descriptive
statistics on the three objectives.

4.2 Response Rate

The study targeted to collect data from one hundred sixty two (162) respondents. One
hundred sixty two questionnaires were distributed to 162 respondents whereby only 148
questionnaires were returned as indicted in table two below.
Table 2 Response Rate

Respondents Questionnaires Questionnaires Response Rate (%)

category administered collected
Administrators 22 18 81.8
Managers 40 30 75.0
Employees 100 100 0.0
Total 162 148 91.3

Source: Primary data

From the sample size of 162 respondents, 148 questionnaires were returned from
respondents giving a total response rate of 91.3 as shown in Table 4.1. The researcher
considered this response to be excellent because according to Blaikie (2009) samples
with the response rate above 50% are regarded to be good enough. Since the response
rate was greater than 70% it meant that data was very good for analysis to generate valid
results.

37
4.3 Background Information
The study collected the demographic data to ensure validity of responses. Therefore, this
section is organized according to; gender distribution, level of Education, period the
organization existed, number of staff members, education level attained, years of service
at the selected industries in Namanve Industrial Park. Background information was
collected because it was presumed very vital to the study since it influences the nature of
participation, the opinions of respondents and presents a clear picture of the participants
of the study. Below is the detailed explanation of each demographic characteristic
presented in the questionnaires.

4.3.1 Gender
The researcher sought to find the gender distribution of respondents in the selected
industries in Namanve Industrial Park where results in Table 3 were captured.

Table 3: Respondents Gender

Frequency Percent Valid Percent Cumulative

Percent

Male 90 60.8 60.8 60.8

Valid Female 58 39.2 39.2 100.0

Total 148 100.0 100.0

Source: Primary Data

Findings from Table 3 on the distribution of the respondents by gender in the selected
industries in Namanve Industrial Park illustrated that 60.8% of respondents were males
and 39.3% were females. This may be attributed to the fact that the selected industries in
Namanve Industrial Park employees more males workers for production work than
females and this means the study was gender biased.

38
4.2.2 Years of service at the selected industries in Namanve Industrial Park
Figure 1: Showing Years of service at the selected industries in Namanve Industrial
Park

Source: Primary Data

Figure 1 above indicates that many of respondents 67.6% had completed between
below 5 years in service at the selected industries in Namanve Industrial Park, then 27%
of employees had been in service for more than 5-10 years followed by 5.4% of
employees who had been there form more than 10 years. This implies that majority of
respondents had a less background and experience about the information regarding the
role Of Uganda Industrial Research Institute in promoting industrialization in Namanve
Industrial Park.

4.2.3 Level of Education

Respondents were asked to indicate their level of education. This was done to define the
ability of respondents to raise appropriate responses that would guide this nature of
investigation. Findings from the study are represented in Figure 2 below;

39
Figure 2: Level of Education

Source: Primary Data

Majority respondents 49 (33.1%) had at least attained a diploma, followed by 38(25.7%)
who had a bachelor’s degree, 20(13.5%) had a masters and only 1(0.7%) had a PhD. This
reflected the relatively high level of literacy in the selected industries in Namanve
Industrial Park and this implied that the respondents had the ability to raise appropriate
responses and able to interpret the research questions.

40
4.3 The various activities used by UIRI in promoting industrialization
The first objective of the study was to find out the various activities used by UIRI in
promoting industrialization. The findings were then analyzed, presented and interpreted
as shown below;

Table 4: Summary of Descriptive Statistics on the various activities used by UIRI in

promoting industrialization
Variables Frequenc Percen Valid Cumulative
y t Percen Percent
t
UIRI promotes Agree
industrialization through 118 79.7 79.7 79.7
creating favorable Not
conditions Sure 10 6.8 6.8 86.5
Disagre
e 20 13.5 13.5 100.0
Operating in clusters has Agree
helped our organization to 118 79.7 79.7 79.7
overcome their growth Not
constraints Sure 0 0 0 0.0
Disagre
e 30 20.3 20.3 100.0
Science, Technology and Agree
Innovation (STI) activities 93 62.8 62.8 62.8
have been one of the driving Not
forces of our development Sure 5 3.4 3.4 66.2
Disagre
e 50 33.8 33.8 100.0
We have always received Agree
Voluntary knowledge 48 32.4 32.4 32.4
disclosure from UIRI Not
participants Sure 20 13.5 13.5 45.9
Disagre
e 80 54.1 54.1 100.0
Knowledge given by UIRI Agree
staff is open and 58 39.2 39.2 39.2
controllable Not
Sure 40 27.0 27.0 66.2

41
 Disagre
e 50 33.8 33.8 100.0
We have continuous and Agree
dynamic interactions among 58 39.2 39.2 39.2
UIRI participants Not
Sure 20 13.5 13.5 52.7
Disagre
e 70 47.3 47.3 100.0
University-Industry- Agree
Government relationships 116 78.4 78.4 78.4
have promoted our growth Not
Sure 0 0 0 0
Disagre
e 32 21.6 21.6 100.0
Clusters constitute Agree
important knowledge 98 66.2 66.2 66.2
spillovers for our growth Not
Sure 0 0 0 0
Disagre
e 50 33.8 33.8 100.0
Business incubators have Agree
helped us survive and grow 110 74.3 74.3 74.3
during the start-up period Not
Sure 28 18.9 18.9 93.2
Disagre
e 10 6.8 6.8 100.0
Total
148 100.0 100.0

Source: Primary Data

From Table 6, significant number of respondents, 118 (79.7%) agreed to the statement
that UIRI promotes industrialization through creating favorable conditions while
20(13.5%) disagreed, 10(6.8%) were not sure with the statement. This clearly shows that
creating favorable conditions for industrialization is one of the activities UIRI considers
in order to promote indoctrination in Namanve Industrial Park hence this indicates that
UIRI has tried to promote industrialization in Namanve Industrial Park by providing
support that enhances the growth of industries with the industrial park.

42
The study findings show that majority of the respondents representing 118(79.7%) agreed
and only 30(20.3%) disagreed to the statement that the urge by UIRI to operate in clusters
has helped organizations in Namanve Industrial Park to overcome their growth
constraints. This simply means operating clusters has helped industries in Namanve
Industrial Park to grow hence need to for the management of UIRI to support clusters.
This is in line with the findings of International literature which suggest that operating in
clusters may help small enterprises to overcome their growth constraints (Andersson,
2004 & Solvell, 2009).

When respondents were asked if Science, Technology and Innovation (STI) activities
have been one of the driving forces of industrial development in Namanve Industrial Park
most of the respondent’s representing 93 (62.8%) agreed and 50(33.8%) disagreed to the
statement and only 5(3.4%) were not sure with the statement. This clearly shows (STI)
activities have been one of the major activities that UIRI is UIRI has implemented
policies on use of STI activities in order to promote industrialization in Namanve
Industrial Park. This is in support with the findings of OECD, (2006) and Ertl et al.,
(2007) who confirm that STI activities have accelerated growth and brought about social
change through the movement of people, goods and services and an increased capacity to
generate, transmit and use STI knowledge in industries.

Findings in table 6 reveal that most of the respondents representing 80(54.1%) disagreed
to the statement that they have always received voluntary knowledge disclosure from
UIRI participants on Industrialization, 48(32.4%) agreed, 20(13.5%) were not sure with
the statement. This clearly shows that UIRI has provided less voluntary knowledge
through its industrials research participants to the companies in Namanve Industrial
Parkwhich means that this activity has been ignored since findings have proved that the
industrial research participants involved in providing this voluntary knowledge have not
done enough to disclose the required to most of the starting industries in the park hence
inhibiting the rate of growth of industrialization in Namanve park.

43
According to the findings made by study, 58 (39.2%) agreed, 50(33.8%) disagreed and
40(27.0%) were not sure if knowledge given by UIRI staff is open and controllable. The
findings represent an inability of UIRI staff to give open and controllable knowledge to
organizations in the Namanve industrial park hence limiting industrialization. This calls
for the need by the management of UIRI to hold open and controllable knowledge on
innovations as suggested by findings made by Laursen and Salter, 2005; Vanhaverbecke
et al., (2008); Keupp and Gassmann, 2009) in their research that Open and controllable
innovations allows innovating companies to sense developments in a wide range of
externally developed inventions by buying minority stakes in (high-tech) start-ups,
participating in venture capital funds.

Results on whether there have been continuous and dynamic interactions among UIRI
participants showed that majority of the respondents 70(47.3%) disagree and 58(39.2%)
agree to the statement while 20(13.5%) were not sure. This is an indication of absence of
continuous and dynamic interactions among UIRI participants and industry members
since most of the respondents disagreed to the statement hence interactions on business
incubation and for startup and ongoing business in Namanve Industrial Parkare
occasional and not often practiced by UIRI staff members which might be due to lack of
enough funds to facilitate such continuous and dynamic interactions on promoting
industrialization in the park.
Furthermore, from Table 6 above a big number of respondents 116(78.4%) agreed to the
statement that University-Industry-Government relationships have promoted industries
growth while a small percentage of 32(21.6%) disagreed to the statement that that
University-Industry-Government relationships have promoted industries growth. This
implies that University-Industry Government relationships has been one of the activities
that have positively helped in boosting industrialization in Namanve Industrial Park. This
might have been possible because the inter-dependence between these three institutional
spheres overlaps and takes the role of the other. This also in support of the finding made
by Leydesdorff, (2001); Campbell, (2005) which suggests that university-industry-
government networked infrastructures supports these triple-helix collaborations as the
key to improving the conditions for innovation, productivity, and wealth in a knowledge-
based society hence promoting industrialization.
44
A considerable number of respondents 98(66.2%) agreed to statement that clusters
constitute important knowledge spillovers for our growth. While the remaining
50(33.8%)of the respondents disagreed to account that clusters constitute important
knowledge spillovers for our growth, this could have been due to the fact that most of
these selected industries under the study operate in one geographical location (Namanve
Industrial Park) and in a close proximity hence leading to clustering.

Last but not least, on the statement that business incubators have helped industries in
Namanve Industrial Park survive and grow during the start-up period, 110(74.3%) agreed
while 28(18.9%) were not sure and 10(6.8%) disagreed. The clearly shows that business
incubators ran by UIRI have positively helped most of the startup industries with
Namanve Industrial Park. This is due to the fact that Incubators are of basic importance in
the process of establishing links between research and business whereby they provide
support services to start-up firms by temporarily; enabling young entrepreneurs with a
scientific background to build up their business management know-how and develop
their innovative businesses.

45
4.4 Challenges faced by UIRI in promoting industrialization

Table 5: Descriptive Statistics on challenges faced by UIRI in promoting

industrialization
Variables Frequenc Percen Valid Cumulativ
y t Percen e
t Percent
UIRI has not invested much Agree 126 85.1 85.1 85.1
in training business
Not
incubators 0 0 0 0
Sure
Disagree 22 14.9 14.9 100.0
Embezzlement and misuse Agree
143 96.6 96.6 96.6
of the institution funds has
affected the level of Not
0 0 0 0
industrialization in Sure
Namanve Industrial Park Disagree 5 3.4 3.4 100.0
Long time taken at the Agree 78 52.7 52.7 52.7
incubation period UIRI has Not
decreased the rate of 30 20.3 20.3 73.0
Sure
industrialization in Disagree 40
Namanve Industrial Park 27.0 27.0 100.0
UIRI has Failed to get other Agree
128 86.5 86.5 86.5
stakeholder on board to
support industrialization in Not
0 0 0 0
Namanve Industrial Park Sure
Disagree 20 13.5 13.5 100.0
UIRI lacks the market and Agree 86 58.1 58.1 58.1
financial development
Not
components that would help 20 13.5 13.5 71.6
Sure
SME clients attain self-
Disagree 42 28.4 28.4 100.0
sufficiency
UIRI has failed to extend Agree 94 63.5 63.5 63.5
incubation projects and
Not
training to rural areas 23 15.5 15.5 79.1
Sure
Disagree
31 20.9 20.9 100.0
Total 148 100.0 100.0

Source: Primary data

46
From Table 7 above, 126(85.1%) of respondents agreed that UIRI has not invested much
in training business incubators while a small number of 22(14.9%) respondents disagreed
to the statement. The study findings indicate that UIRI has not invested much in training
business incubators on how to handle their businesses either startup businesses or
continuing businesses so as to minimize failure which later promotes industrialization by
eliminating some factors that might lead to failure of these industries and on other hand
promote industrialization in Namanve Industrial Park.

The study also sought to know if embezzlement and misuse of the institution funds by
UIRI staff has affected the level of industrialization in Namanve Industrial Park. Findings
showed that majority of the respondents 143(96.6%) agreed to the statement. However a
small number of respondents 5(3.4%) disagreed with the statement that embezzlement
and misuse of the institution funds by UIRI staff has affected the level of industrialization
in Namanve Industrial Park. This finding gives evidence of the existence of
embezzlement and misuse of the UIRI funds that are meant to support business
incubation practices hence leading to poor performance of industrialization due to lack of
enough funds to promote UIRI services.

Further still, findings in table 7 reveals that majority of the respondents representing
78(52.7%) agreed and 40(27.0%) disagreed that the long time taken at the incubation
period by UIRI has decreased the rate of industrialization in Namanve Industrial Park
while 30(20.3%) were not sure with the statement. This confirms that there is a lot of
time taken UIRI at the incubation stage which reduces the rate at which industrialization
grows in Namanve Industrial Park hence need for a solution to reduce on the time taken
at the incubation stage. The delay in business incubation might be due to insufficient
funds and lack of enough labour force to ease the incubation process hence leading to
delays.

The researcher was also interested in finding out whether UIRI has failed to get other
stakeholder on board to support industrialization in Namanve Industrial Park. Majority
of the respondents representing 128 (86.5%) agreed to the statement and the other
20(13.5%) disagreed to the statement. This means that UIRI lacks enough support both

47
financial and no-financial in order to effectively run its projects which would in improve
on that rate of industrialization in Namanve industrial park. According to these results the
researcher concluded that there is need for the management of UIRI to find more stake
holders who can invest in supporting UIRI activities such as research and business
incubation so as to promote the growth of industrialization in Namanve Industrial Park as
well as the entire country.

Further still findings in Table 7 revealed that majority of the respondents representing
86(58.1%) agreed to the statement that UIRI lacks the market and financial development
components that would help SME clients attain self-sufficiency. However, the other
42(28.4%) of the respondents disagreed, 20(3.5%) were not sure to the same statement.
This indicates the UIRI has failed to find market and financial development components
that would help most of the industries in Namanve Industrial Park attain self-sufficiency
which in turn has led to a deteriorating rate of industrialization for the past years in
Namanave Industrial Park.

Lastly when respondents were asked if UIRI has failed to extend incubation projects and
training to rural areas most of the respondents representing 94(63.5%) agreed to the
statement while 31(20.9%) disagreed and the remaining 23(15.5%) were not sure, to the
same statement. This finding indicates the inadequacy in the extension of incubation
projects and training to rural areas which is also one of the challenges affecting UIRI in
promoting industrialization. The percentage which was not sure with the statement might
be due to albescence of knowledge on the available incubation projects UIRI performs in
rural areas. Therefore with the this challenge UIRI need extend incubation projects to
even rural area so as to promote industrialization not only in Namanve Industrial Park but
also other rural areas in the country.

48
4.5 Solutions to challenges faced by UIRI in promoting industrialization

Table 6: Descriptive Statistics on solutions challenges faced by UIRI in promoting

industrialization

Variables Frequency Percent Valid Cumulative

Percent Percent
UIRI should Agree 130 87.8 87.8 87.8
provide training on
skilled labour force Not Sure 0 0 0 0
to manage the
Disagree
machinery used in 18 12.2 12.2 100.0
incubation process

UIRI should involve Agree 120 81.1 81.1 81.1

stakeholder engagement
in funding the research Not Sure 12 8.1 8.1 89.2
and development
Disagree 16 10.8 10.8 100.0

UIRI should extend Agree 130 87.8 87.8 87.8

incubation projects and
training to rural areas Not Sure 0 0 0 0

Disagree 18 12.2 12.2 100.0

UIRI should put clear
guidelines on finishing Agree 147 99.3 99.3 99.3
the incubation process
in a short time Not Sure 1 0.7 0.7 100.0

Disagree 0 0 0 0
UIRI should find
market and Agree 115 77.7 77.7 77.7
financial Not Sure 0 0 0 0
development
components that Disagree
would help SME 33 22.3 22.3 100.0
clients attain self-
sufficiency.

UIRI should advice the Agree 101 68.2 68.2 68.2

organizations in
Namanve industrial Not Sure 0 0 0 0
park to allocate
resources in accordance Disagree 47 31.8 31.8 100.0
with the priorities, needs

49
 and aspirations
Total 148 100.0 100.0
Source: Primary data

From Table 8 above it is observed that 130(87.8%) of the respondents agreed to the
statement that UIRI should provide training on skilled labour force to manage the
machinery used in incubation process, whereas 18(12.2%) disagreed to the same
statement. This implied that training has been one challenges affecting UIRI in promoting
Industrialization and hence there is need for UIRI to implement training on skilled labour
force on how to manage the machinery at both incubation and after incubation. If training
is offered to UIRI staff they will be able to execute their duties with in a short time and
effectively which will in end eliminate long delays taken during the incubation period.

The study findings show that 120 (81.1%) of respondents agreed that UIRI should
involve stakeholder engagement in funding the research and development whereas a
considerable number of respondents representing 16(10.8%) disagreed and 12(8.1%)
were not sure with the statement that UIRI should involve stakeholder engagement in
funding the research and development. Considering a large number of respondents who
agreed, there is need for extra stakeholder engagement so as to help in UIRI in funding its
research and development activities hence promote the growth of industrialization in
Namanve Industrial Park.

Results from table 8 reveal that most of the respondents at 130(87.8%) agreed that UIRI
should extend incubation projects and training to rural areas while the remaining
18(12.2%) disagreed with the statement. This means the that UIRI has concentrated a lot
in urban areas leaving out rural areas which has affected industrialization not only
Namanve Industrial Parkbut also across the entire country hence necessary for UIRI to
concentrate not in urban areas but also consider extending its projects to areas so as to
promote industrialization country wide.

Further still, respondents were asked if UIRI should put clear guidelines on finishing the
incubation process in a short time most of the respondents representing 147(99.3%)

50
agreed to the statement while only 1(0.7%) was not sure with the statement. This clearly
means the most the respondents support implementation of clear guidelines by UIRI on
finishing the incubation process in a short time as one of the strategies UIRI can use in
order to promoting industrialization in Namanve Industrial Park. These guidelines will
ease the work of UIRI since the guideline will contacting strict rules and regulations that
will be followed in order to fulfill tasks involved in the incubation process in their
chorological order.

Findings from table 8 also revealed that 115(77.7%) of the respondents agreed that UIRI
should find market and financial development components that would help SME clients
attain self-sufficiency and a small number representing 33(22.3%) disagreed to the same
statement. This means that with use market and financial markets industries with in
Namanve industrial park will be able to attain self-sufficiency and hence promote
industrialization. At a large extent findings revealed that finding market and financial
development components is one of the strategies of promoting industrialization however
at small extent it is not the exclusively the only strategy to consider hence need to
consider other solutions as mentioned above.

Lastly, from Table 8 it is observed that 101(68.2%)of respondents agreed that

UIRI should train organizations in Namanve Industrial Park to allocate resources in
accordance with the priorities, needs and aspirations to allocate resources in accordance
with the priorities, needs, and aspirations, while a small number 47(31.8%) disagreed to
the same statement. This will help organization to avoid allocating their resources to
wrong ideas which in long run fail to deliver what they expect to earn hence a solution
that the management of UIRI should consider in order to promote in industrialization in
Namanve Industrial Park and the country at large.

51
 CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter presents a summary of findings, discussion of findings obtained in chapter
four, conclusions, recommendations and limitations of the study. It is divided into five
sections; summary of the findings, conclusions, recommendations, limitations of the
study and lastly areas of further research.

5.2 Summary of the Findings

5.2.1 Various activities used by UIRI in promoting industrialization
The major findings in objective one of the study indicates that UIRI urges starting
business in Namanve Industrial Park to operate in clusters which helped organizations in
Namanve Industrial Park to growth since some costs like construction of new roads,
electricity grid line and water connection among others are shared since industries are
located in the same geographical location hence operating clusters has had a positive
impact on promoting industrialization in Namanve Industrial Park therefore need to for
the management of UIRI to continue urge industries to operate in clusters. This finding is
also supported by the findings made by Andersson, (2004) & Solvell, (2009) in their
research who found out that operating in clusters may help enterprises to overcome their
growth constraints.

Furthermore, findings on various activities used by UIRI in promoting industrialization

show that Science, Technology and Innovation (STI) activities have been one of the
major activities that UIRI has implemented in order to promote industrialization in
Namanve Industrial Park. This means that the existence of Science, Technology and
Innovation (STI) activities which have been used by UIRI have promoted growth of
industrialization in Namanve Industrial Park. This can be explained by the findings of
OECD, (2006) & Ertl et al., (2007) which confirm that STI activities accelerate growth
and social change through the movement of people, goods and services and an increased
capacity to generate, transmit and use STI knowledge in industries. The use Science,
Technology and Innovation (STI) activities in promoting industrialization by UIRI and

52
 industries operating in clusters were identified to be the most impacting activities that
have promoted industrialist ion in Namanve Industrial Park.

5.2.2 Challenges faced by UIRI in promoting industrialization

Findings on objective two this research discovered that the major challenges faced by
UIRI in promoting industrialization include; embezzlement and misuse of the UIRI funds
which has affected the level of industrialization in Namanve Industrial Park. This implies
that there is existence of embezzlement and misuse of the UIRI funds that are meant to
support business incubation practices hence leading to poor performance of
industrialization due to lack of enough funds to promote UIRI services and hence one the
most common challenge which is an internal challenge.
The other most common challenge that was identified is failure of UIRI to get other
stakeholder on board to support industrialization in Namanve Industrial Park. The study
discovered that there is need for the management of UIRI to find more stake holders who
can invest in supporting UIRI activities such as research and business incubation so as to
promote the growth of industrialization in Namanve Industrial Park as well as the entire
country.

5.2.3 Solutions to challenges faced by UIRI in promoting industrialization

Findings on objective three of the study indicated that UIRI should involve more
stakeholder engagement in funding the research and development because there was there
was need for extra stakeholder engagement so as to help in UIRI to support both
financially and non-financially its projects such and research and development activities
hence promote the growth of industrialization in Namanve Industrial Park.

The study also suggested that UIRI should provide training on skilled labour force to
manage the machinery used in incubation process, UIRI should extend incubation
projects and training to rural areas, UIRI should put clear guidelines on finishing the
incubation process in a short time, UIRI should find market and financial development
components that would help firms attain self-sufficiency and ability for UIRI to advice
the government and agencies to allocate resources in accordance with the priorities,
needs, and aspirations.

53
5.2 Conclusions
The study was guided by research questions that were developed from the objectives of
the study. From the responses of respondents held in the questionnaires during the study,
conclusions were made in regards to the research questions. Conclusions are arranged
according to the study objectives.

Objective one of the research was to identify the various activities used by UIRI in
promoting industrialization, findings revealed that the ability of UIRI to support
organization operate in clusters has helped organizations in Namanve Industrial Park to
overcome their growth constraints whereas where a few respondents which is also in line
with the findings of Andersson, (2004) & Solvell, (2009) who stated that operating in
clusters may help enterprises to overcome their growth constraints. However, the study
also identified that UIRI promotes industrialization through creating favorable conditions,
Science, Technology and Innovation (STI) activities have been one of the driving forces
of our development, University-Industry-Government relationships have promoted our
growth and Business incubators have helped industries survive and grow during the start-
up period

Study Findings on objective two which was to identify the Challenges faced by UIRI in
promoting industrialization shows two major challenges which include; presence of
embezzlement and misuse of the institution funds has affected the level of
industrialization in Namanve Industrial Park and failure of UIRI to get other stakeholder
on board to support industrialization in Namanve Industrial Park. However the other
challenges identified include; failure by UIRI to extend incubation projects and training
to rural areas, lack of market and financial development components that would help
SME clients attain self-sufficiency, Long time taken at the incubation period UIRI has
decreased the rate of industrialization in Namanve Industrial Park and inability by UIRI
to invest much in training business incubators.
Objective three of the study identifies the solutions to challenges faced by UIRI in
promoting industrialization. The solution to challenges identified were in line with
challenges identified in the study and the following solution were suggested for the study;
UIRI should involve stakeholder engagement in funding the research and development

54
 whereas a considerable number of respondents, agreed, UIRI should provide training on
skilled labour force to manage the machinery used in incubation process, UIRI should
extend incubation projects and training to rural areas, UIRI should put clear guidelines on
finishing the incubation process in a short time, UIRI should find market and financial
development components that would help SME clients attain self-sufficiency and ability
for UIRI to advice the government and agencies to allocate resources in accordance with
the priorities, needs, and aspirations.

5.3 Recommendations
Results from descriptive analysis revealed that the urge by UIRI for firms to operate in
clusters has helped organizations in Namanve Industrial Park to overcome some costs
like construction of new roads, easy access to electricity grid line and water connection
among others are shared since industries are located in the same geographical location.
Therefore UIRI should continue to urge firms starting firms in Uganda to consider
operating in clusters because it will help them avoid some costs.

Findings also revealed that Science, Technology and Innovation (STI) activities have
been one of the driving forces for the development of firms in Namanve Industrial Park.
Therefore UIRI should concentrate on funding these STI activities since they lead to
continuous improvement in firms production processes, adapting their existing product
lines, installing entirely new infrastructure and adopting new technologies that will
subsequently result into production of new products that will guarantee improved
industrialization.

Also it was observed from the findings that long time taken at the incubation period UIRI
has decreased the rate of industrialization in Namanve Industrial Park. Therefore there is
a need for the management UIRI to reduce on the time taken at the incubation stage and
increase rate of industrialization in Namanve Industrial Park and the country at large.

55
5.4 Limitations of the study
i. The research was cross sectional in nature and did not capture the challenges faced by
UIRI in promoting industrialization in Namanve Industrial Park since most of the
challenges responded to in the questionnaires were external challenges.

ii. Data collection took longer than anticipated due to the fact that the target respondents
were managers, administrators and employees who were always home due to Covid-19
out brake.

iii. The sample was a limiting factor in the study. The sample represented only 40 fully
operating industries in Namanve Industrial Park which is located in two districts Wakiso
and Mukono and this limits the extent to which the findings can be generalized to the
whole Uganda.

5.5 Areas for Further Research

Given the fact that this research could not exhaust everything, it is recommended that the
following areas be studied thoroughly;

i. A longitudinal study should be carried out to establish the trends of change on

industrialization as a result of innovation and business incubation.

ii. It is very clear that there are other factors that were not part of this research that influence
UIRI in promoting industrialization in Uganda. Thus research should be carried out to
establish other factors that could be influencing the performance of UIRI in promoting
industrialization in Uganda.

56
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Group. Washington, DC. Retrieved 19 December 2017.

Yin, R. K. (2003). Case study research: Design and methods. SAGE.

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 APPENDIX 1: RESEARCH QUESTIONNAIRE

Dear respondent,
I am Agnes Babirye, a student of Makerere University Business School pursuing a Bachelor’s
Degree in International Business. As part of the university program, I am carrying out
research on “the role of Uganda Industrial Research Institute (UIRI) in promoting
industrialization in Uganda” with a case study of Namanve Industrial Park and your entity
has been selected to participate in a study. This study is intended for only academic purpose
and information provided will be treated as highly Confidential. The researcher guarantees the
destruction of the acquired information by burning once the data has been analyzed and
inferences drawn. Your co-operation is highly appreciated.

SECTION A: DEMOGRAPHIC CHARACTERISTICS

Please tick the most appropriate option in numbers
1. Gender
Male Female
1 2

2. How long have you been working with this organization?

Below 5 years 05 – 10 years Above 10 years
1 2 3

3. What is your highest level of Education?

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 Diploma Degree Masters PhD Others
1 2 3 4

In the following sections please state the extent to which you agree or disagree to a particular

statement about each competence by ticking the appropriate response.

Please circle the correct answer using the following likert scale:

Strongly agree (SA), Agree (A), Not Sure (NS), Disagree (D), and Strongly Disagree (SD)

SECTION B: ACTIVITIES USED BY UIRI IN PROMOTING INDUSTRIALIZATION

CODE Statements A NS D
A1 UIRI promotes industrialization through creating favorable 1 2 3
conditions
A2 Operating in clusters has helped our organization to overcome 1 2 3
their growth constraints
A3 Science, Technology and Innovation (STI) activities have been 1 2 3
one of the driving forces of our development
A4 We have always received Voluntary knowledge disclosure from 1 2 3
participants
A5 Knowledge given by UIRI staff is open and controllable 1 2 3
A6 We have continuous and dynamic interactions among participants 1 2 3
A7 University-Industry-Government relationships have promoted our 1 2 3
growth
A8 Clusters constitute important knowledge spillovers for our growth 1 2 3
A9 Business incubators have helped us survive and grow during the 1 2 3
start-up period

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SECTION C: CHALLENGES UIRI FACES IN PROMOTING INDUSTRIALIZATION
Please circle the correct answer using the following Likert scale:

Strongly agree (SA), Agree (A), Not Sure (NS), Disagree (D), and Strongly Disagree (SD)

CODE Statements A NS D
C1 UIRI has not invested much in training business incubators 1 2 3
C2 Embezzlement and misuse of the institution funds has affected the 1 2 3
level of industrialization in Namanve Industrial Park
C3 Long time taken at the incubation period UIRI has decreased the 1 2 3
rate of industrialization in Namanve Industrial Park
C4 UIRI has Failed to get other stakeholder on board to support 1 2 3
industrialization in Namanve Industrial Park
C5 UIRI lacks the market and financial development components that 1 2 3
would help SME clients attain self-sufficiency
C6 UIRI has failed to extend incubation projects and training to 1 2 3
rural areas

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SECTION D: SOLUTIONS TO CHALLENGES FACED BY UIRI IN PROMOTING
INDUSTRIALIZATION
Please circle the correct answer using the following Likert scale:

Strongly agree (SA), Agree (A), Not Sure (NS), Disagree (D), and Strongly Disagree (SD)

CODE Statements A NS D
R1 UIRI should provide training on skilled labour force to manage 1 2 3
the machinery used in incubation process
R2 UIRI should involve stakeholder engagement in funding the 2 3 4
research and development
R3 UIRI should extend incubation projects and training to rural 2 3 4
areas
R4 UIRI should put clear guidelines on finishing the incubation 2 3 4
process in a short time
R5 UIRI should find market and financial development 2 3 4
components that would help SME clients attain self-sufficiency.

R6 UIRI should advice the organizations in Namanve industrial 2 3 4

park to allocate resources in accordance with the priorities,
needs and aspirations

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