Innovation and Economic Growth in Nigeria (2013 -2022)

Abstract

Innovation has been viewed as one of the major drivers of economic growth but its exact effect is still a topic of debate among researchers. Innovation contributes to new products, services, processes, new product improvements and new business models. Any country or business venture, that has innovative culture in place can grow without difficulty. This is notwithstanding the fact that the innovative process is not always easy. This study investigates innovation and its effect on economic growth in Nigeria for the period 2013-2022. Ex post facto research design is employed, using secondary data sourced from WDIs, WIPO Statistics, CBN Statistical Bulletins, NBS and GII 2022. Generalized Method of Moments (GMM) regression analysis is employed to ascertain the effect of innovation on economic growth. The estimation was done with the aid of EViews version12.The results show that patents, trademarks, industrial designs and research and development expenditures do not have any significant effect on economic growth in Nigeria. The inflation rate as one of the control variables indicates a significant negative effect on economic growth, while tertiary school enrolment as proxy for human capital development, and foreign exchange rate do not show any significant positive effect on economic growth for the period covered by this study. The conclusion is that innovation does not drive economic growth in Nigeria. The policymakers should reassess the existing innovation policies and strategies and consider alternative approaches that would encourage innovation to promote economic growth in Nigeria