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The study investigated technology innovations and factors influencing its upgrading in the indigenous textile weaving firms in southwestern Nigeria. Data for the survey was sourced from 300 small scale firms with 91% retrieval rate. The survey instruments which were questionnaire, interview and personal observation elicited information on the weaving process. Majority (89%) of the respondents reported product innovations while 8% and 3% have carried out process and organizational innovations respectively. The males (74%) weave on the horizontal loom while female respondents (26%) weave on the vertical loom. Most (96%) of the firms used the manual production process while a few (4%) have introduced some process improvements. Also, 58% of the respondents lack technical skills, technical education (87%) and investment funds (59%). The study concluded that lack of technical education and skills as well as adequate capital could limit the capability of respondents to adopt modern weaving techniques and innovate.

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