Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach

John Oluwasegun Ajibike; Fisayo Fagbemi

doi:doi:10.11648/j.ajtab.20220802.12

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Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach

John Oluwasegun Ajibike, Fisayo Fagbemi

Published in American Journal of Theoretical and Applied Business (Volume 8, Issue 2)

Received: 16 May 2022 Accepted: 9 June 2022 Published: 28 July 2022

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Abstract

The study examines the relationship between innovation and economic growth in Nigeria’s context. In the study, patent applications, residents are used as the innovation indicator, while GDP growth (annual %) represents the economic growth measure. The analysis covers the period 2000-2020, with the use of Autoregressive Distributed Lag (ARDL) technique and Granger causality test based on VECM. Results indeed reflect the increased importance given to the knowledge-intensive side of the economy. The effect of innovation tends to be a major source of increased productivity and improved growth. This assertion aligns with the argument and reaffirms the idea that innovation is instrumental in enhancing economic performance. Furthermore, simultaneous improvements in innovation and economic growth are expected if positive changes happened to both indicators with similar magnitudes. The evidence shows that growth-innovation linkage is mutually inducing, reflecting a bi-directional feedback effect. Hence, directing public policies towards supporting innovation aimed at significantly influencing economic growth should be better advocated. Given that the enhancement of innovation efforts seems advantageous to the economy, it is necessary to redesign education and job training that could engender the presence of high-quality innovation, and to ensure the rational reallocation of resources around relevant innovative technologies.

Published in	American Journal of Theoretical and Applied Business (Volume 8, Issue 2)
DOI	10.11648/j.ajtab.20220802.12
Page(s)	30-37
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Economic Growth, Innovation, Public Policy, ARDL, Nigeria

References

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John Oluwasegun Ajibike, Fisayo Fagbemi. (2022). Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach. American Journal of Theoretical and Applied Business, 8(2), 30-37. https://doi.org/10.11648/j.ajtab.20220802.12

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ACS Style

John Oluwasegun Ajibike; Fisayo Fagbemi. Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach. Am. J. Theor. Appl. Bus. 2022, 8(2), 30-37. doi: 10.11648/j.ajtab.20220802.12

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AMA Style

John Oluwasegun Ajibike, Fisayo Fagbemi. Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach. Am J Theor Appl Bus. 2022;8(2):30-37. doi: 10.11648/j.ajtab.20220802.12

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@article{10.11648/j.ajtab.20220802.12,
  author = {John Oluwasegun Ajibike and Fisayo Fagbemi},
  title = {Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {8},
  number = {2},
  pages = {30-37},
  doi = {10.11648/j.ajtab.20220802.12},
  url = {https://doi.org/10.11648/j.ajtab.20220802.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20220802.12},
  abstract = {The study examines the relationship between innovation and economic growth in Nigeria’s context. In the study, patent applications, residents are used as the innovation indicator, while GDP growth (annual %) represents the economic growth measure. The analysis covers the period 2000-2020, with the use of Autoregressive Distributed Lag (ARDL) technique and Granger causality test based on VECM. Results indeed reflect the increased importance given to the knowledge-intensive side of the economy. The effect of innovation tends to be a major source of increased productivity and improved growth. This assertion aligns with the argument and reaffirms the idea that innovation is instrumental in enhancing economic performance. Furthermore, simultaneous improvements in innovation and economic growth are expected if positive changes happened to both indicators with similar magnitudes. The evidence shows that growth-innovation linkage is mutually inducing, reflecting a bi-directional feedback effect. Hence, directing public policies towards supporting innovation aimed at significantly influencing economic growth should be better advocated. Given that the enhancement of innovation efforts seems advantageous to the economy, it is necessary to redesign education and job training that could engender the presence of high-quality innovation, and to ensure the rational reallocation of resources around relevant innovative technologies.},
 year = {2022}
}

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TY  - JOUR
T1  - Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach
AU  - John Oluwasegun Ajibike
AU  - Fisayo Fagbemi
Y1  - 2022/07/28
PY  - 2022
N1  - https://doi.org/10.11648/j.ajtab.20220802.12
DO  - 10.11648/j.ajtab.20220802.12
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 30
EP  - 37
PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20220802.12
AB  - The study examines the relationship between innovation and economic growth in Nigeria’s context. In the study, patent applications, residents are used as the innovation indicator, while GDP growth (annual %) represents the economic growth measure. The analysis covers the period 2000-2020, with the use of Autoregressive Distributed Lag (ARDL) technique and Granger causality test based on VECM. Results indeed reflect the increased importance given to the knowledge-intensive side of the economy. The effect of innovation tends to be a major source of increased productivity and improved growth. This assertion aligns with the argument and reaffirms the idea that innovation is instrumental in enhancing economic performance. Furthermore, simultaneous improvements in innovation and economic growth are expected if positive changes happened to both indicators with similar magnitudes. The evidence shows that growth-innovation linkage is mutually inducing, reflecting a bi-directional feedback effect. Hence, directing public policies towards supporting innovation aimed at significantly influencing economic growth should be better advocated. Given that the enhancement of innovation efforts seems advantageous to the economy, it is necessary to redesign education and job training that could engender the presence of high-quality innovation, and to ensure the rational reallocation of resources around relevant innovative technologies.
VL  - 8
IS  - 2
ER  -

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Author Information

John Oluwasegun Ajibike

Department of Banking and Finance, the Polytechnic, Ibadan, Nigeria
Fisayo Fagbemi

Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria

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Plain Text BibTeX RIS

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John Oluwasegun Ajibike, Fisayo Fagbemi. (2022). Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach. American Journal of Theoretical and Applied Business, 8(2), 30-37. https://doi.org/10.11648/j.ajtab.20220802.12

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ACS Style

John Oluwasegun Ajibike; Fisayo Fagbemi. Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach. Am. J. Theor. Appl. Bus. 2022, 8(2), 30-37. doi: 10.11648/j.ajtab.20220802.12

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AMA Style

John Oluwasegun Ajibike, Fisayo Fagbemi. Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach. Am J Theor Appl Bus. 2022;8(2):30-37. doi: 10.11648/j.ajtab.20220802.12

Copy | Download

@article{10.11648/j.ajtab.20220802.12,
  author = {John Oluwasegun Ajibike and Fisayo Fagbemi},
  title = {Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach},
  journal = {American Journal of Theoretical and Applied Business},
  volume = {8},
  number = {2},
  pages = {30-37},
  doi = {10.11648/j.ajtab.20220802.12},
  url = {https://doi.org/10.11648/j.ajtab.20220802.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20220802.12},
  abstract = {The study examines the relationship between innovation and economic growth in Nigeria’s context. In the study, patent applications, residents are used as the innovation indicator, while GDP growth (annual %) represents the economic growth measure. The analysis covers the period 2000-2020, with the use of Autoregressive Distributed Lag (ARDL) technique and Granger causality test based on VECM. Results indeed reflect the increased importance given to the knowledge-intensive side of the economy. The effect of innovation tends to be a major source of increased productivity and improved growth. This assertion aligns with the argument and reaffirms the idea that innovation is instrumental in enhancing economic performance. Furthermore, simultaneous improvements in innovation and economic growth are expected if positive changes happened to both indicators with similar magnitudes. The evidence shows that growth-innovation linkage is mutually inducing, reflecting a bi-directional feedback effect. Hence, directing public policies towards supporting innovation aimed at significantly influencing economic growth should be better advocated. Given that the enhancement of innovation efforts seems advantageous to the economy, it is necessary to redesign education and job training that could engender the presence of high-quality innovation, and to ensure the rational reallocation of resources around relevant innovative technologies.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach
AU  - John Oluwasegun Ajibike
AU  - Fisayo Fagbemi
Y1  - 2022/07/28
PY  - 2022
N1  - https://doi.org/10.11648/j.ajtab.20220802.12
DO  - 10.11648/j.ajtab.20220802.12
T2  - American Journal of Theoretical and Applied Business
JF  - American Journal of Theoretical and Applied Business
JO  - American Journal of Theoretical and Applied Business
SP  - 30
EP  - 37
PB  - Science Publishing Group
SN  - 2469-7842
UR  - https://doi.org/10.11648/j.ajtab.20220802.12
AB  - The study examines the relationship between innovation and economic growth in Nigeria’s context. In the study, patent applications, residents are used as the innovation indicator, while GDP growth (annual %) represents the economic growth measure. The analysis covers the period 2000-2020, with the use of Autoregressive Distributed Lag (ARDL) technique and Granger causality test based on VECM. Results indeed reflect the increased importance given to the knowledge-intensive side of the economy. The effect of innovation tends to be a major source of increased productivity and improved growth. This assertion aligns with the argument and reaffirms the idea that innovation is instrumental in enhancing economic performance. Furthermore, simultaneous improvements in innovation and economic growth are expected if positive changes happened to both indicators with similar magnitudes. The evidence shows that growth-innovation linkage is mutually inducing, reflecting a bi-directional feedback effect. Hence, directing public policies towards supporting innovation aimed at significantly influencing economic growth should be better advocated. Given that the enhancement of innovation efforts seems advantageous to the economy, it is necessary to redesign education and job training that could engender the presence of high-quality innovation, and to ensure the rational reallocation of resources around relevant innovative technologies.
VL  - 8
IS  - 2
ER  -

Copy | Download