ArticlePublisher preview available

Technological Catch-Up, Innovation, and Productivity Analysis of National Innovation Systems in Developing Countries in Africa 2010–2018

Authors:
To read the full-text of this research, you can request a copy directly from the authors.

Abstract and Figures

This study investigates the levels and determinants of regional innovation catch-up, frontier shift, and productivity growth of African national innovation systems from 2010 to 2018. The study relied on the World Development Indicators data for 28 African countries. Non-radial non-oriented Data Envelopment Analysis (DEA) and bootstrapped truncated regression were the central estimation methodologies. The results revealed that 18% of Africa’s national innovation systems had experienced progress in the catch-up and frontier shift indexes. Further results showed that 21% had experienced total factor productivity growth. Nigeria and South Africa were on the region’s efficient frontier and had achieved the most technological advancement. In addition, Ghana and Senegal had the most productive national innovation systems. The results suggested that national innovation systems in Africa had experienced marginal progress. Further results indicate that the population growth rate and GDP per capita are the critical determinants of African national innovation systems, efficiency, technical efficiency, and productivity performance. Consequently, the implications of the results to policy are twofold. First, African countries should use benchmarking practices with the region’s best-performing national innovation systems. Lastly, African countries have the potential to grow their economies through regional collaborative Science, Technology, and Innovation practices.
This content is subject to copyright. Terms and conditions apply.
Vol.:(0123456789)
Journal of the Knowledge Economy (2024) 15:7941–7967
https://doi.org/10.1007/s13132-023-01327-4
1 3
Technological Catch‑Up, Innovation, andProductivity
Analysis ofNational Innovation Systems inDeveloping
Countries inAfrica 2010–2018
SimonNdicu1 · DianahNgui2· LauraBarasa3
Received: 12 March 2022 / Accepted: 25 February 2023 / Published online: 5 June 2023
© The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature
2023
Abstract
This study investigates the levels and determinants of regional innovation catch-up,
frontier shift, and productivity growth of African national innovation systems from
2010 to 2018. The study relied on the World Development Indicators data for 28
African countries. Non-radial non-oriented Data Envelopment Analysis (DEA) and
bootstrapped truncated regression were the central estimation methodologies. The
results revealed that 18% of Africa’s national innovation systems had experienced
progress in the catch-up and frontier shift indexes. Further results showed that 21%
had experienced total factor productivity growth. Nigeria and South Africa were on
the region’s efficient frontier and had achieved the most technological advancement.
In addition, Ghana and Senegal had the most productive national innovation sys-
tems. The results suggested that national innovation systems in Africa had experi-
enced marginal progress. Further results indicate that the population growth rate and
GDP per capita are the critical determinants of African national innovation systems,
efficiency, technical efficiency, and productivity performance. Consequently, the
implications of the results to policy are twofold. First, African countries should use
benchmarking practices with the region’s best-performing national innovation sys-
tems. Lastly, African countries have the potential to grow their economies through
regional collaborative Science, Technology, and Innovation practices.
Keywords National innovation system· Regional innovation system· Innovation
efficiency· Malmquist productivity index (MPI)
* Simon Ndicu
ndungu.simon@mnu.ac.ke; simonndicu8@gmail.com
1 Department ofEconomics andFinance, Mama Ngina University College (Constituent College
ofKenyatta University), P. O. Box444-01030, Gatundu, Kenya
2 Department ofEconometrics andStatistics, Kenyatta University, P. O. Box43844-00100,
Nairobi, Kenya
3 Department ofEconomics andDevelopment Studies, University ofNairobi,
P. O. Box30197-00100, Nairobi, Kenya
Content courtesy of Springer Nature, terms of use apply. Rights reserved.
... The competitive identity perspective on nation branding is somewhat related to a country's innovativeness and national innovation systems (Carayannis & Campbell, 2021;Casadella & Tahi, 2023;Disoska et al., 2024;Fagerberg & Srholec, 2008;Godin, 2009;Lundvall, 2007;Ndicu et al., 2024;Pan & Guo, 2022). In this context, national innovation systems can be understood as encompassing a set of "important economic, social, political, institutional, and other factors that influence the development, diffusion, and use of innovations" (Edquist, 2004, p. 182). ...
... Sixth, our findings make a significant contribution to the national innovation system literature. Building upon existing literature that examines the impact of a national innovation system on economic development (Fagerberg & Srholec, 2008;Ndicu et al., 2024) and measures for enhancing national competitiveness (Distanont, 2020), this study introduces a fresh perspective. Specifically, it sheds light on how the national innovation system with the two angles (innovation inputs and outputs) positively influences a nation's brand. ...
Article
Full-text available
This study examines the economic dimensions of knowledge and innovation by investigating the connection between innovation efficiency and nation brand strength— two critical factors in the economic development of knowledge economies. Although the link between innovation efficiency and nation brand strength has not yet been scientifically validated, prior research on innovation efficiency has identified relevant sub-factors, such as innovation inputs and outputs, which can be applied to assess nation brand performance. The study seeks to answer two key questions: Is there a direct or indirect relationship between nation brand strength and these innovation sub-factors? And if so, is this relationship affected by a country’s average income level (measured by GDP per capita)? The findings indicate that GDP per capita impacts both the direct relationship between innovation outputs and nation brand strength and the indirect relationship between innovation inputs and nation brand strength, mediated by innovation outputs. Moreover, GDP per capita has a stronger effect on nation brand strength in low- and medium-income countries than in high-income ones. Understanding these relationships can help policymakers refine their nation brand management strategies by focusing on improving innovation inputs, outputs, or both. These insights advance the theory and practice of national innovation systems and innovation efficiency, as well as contribute to the research on nation branding by analyzing the long-term relationship between innovation sub-factors and nation brand strength across 49 countries from 2011 to 2019.
... In the analysis of the factors influencing innovation efficiency, the existing literature primarily focuses on two viewpoints: the stage of development of companies [30] and their internal and external environments [31]. From the perspective of different stages, prior research has predominantly categorized the innovation process into two distinct stages [32]. ...
... Developing countries face unique challenges in fostering patenting activity and building innovation systems. Ndicu, Ngui, and Barasa (2024) highlight the difficulties African nations encounter in generating patents due to limited resources, weak institutions, and a lack of supportive policies. Their findings align with those of Radosevic (2022), who emphasizes the need for tailored policy interventions to enable technological catch-up in Eastern ...
Preprint
Full-text available
This article focuses on the propensity to patent across Italian regions, considering data from ISTAT-BES between 2004 and 2019 to contribute to analyzing regional gaps and determinants of innovative performances. Results show how the North-South gap in innovative performance has persisted over time, confirming the relevance of research intensity, digital infrastructure, and cultural employment on patenting activity. These relations have been analyzed using the panel data econometric model. It allows singling out crucial positive drivers like R&D investment or strongly negative factors, such as limited mobility of graduates. More precisely, given the novelty of approaches applied in the used model, the following contributions are represented: first, the fine grain of regional differentiation, from which the sub-national innovation system will be observed. It also puts forward a set of actionable policy recommendations that would contribute to more substantial inclusive innovation, particularly emphasizing less-performing regions. By focusing on such dynamics, this study will indirectly address how regional characteristics and policies shape innovation and technological competitiveness in Italy. Therefore, it contributes to the debate on regional systems of innovation and their possible role in economic development in Europe since the economic, institutional, and technological conditions are differentiated between various areas in Italy.
... Meanwhile, our study also includes moderating impacts of technological innovation into the model which further differentiates our theoretical model from past studies. Particularly, technological innovation has played a significant role in promoting key service features and functions in application systems (Ndicu et al., 2024;Wu and Liu, 2021), which provides users with a high ability to customize services following their preferences and styles. Subsequently, it leads to more creativity to achieve better work productivity for the users. ...
Article
Full-text available
Smart classrooms represent innovative learning facilities that seamlessly blend physical reality with digital learning environments, facilitated by advanced technologies. As smart classrooms have significant impacts on individual learning and development, it is essential to comprehend technological innovation, technology readiness , perceived usefulness, trust, and perceived value on students' adoption intention. To address this gap, 600 Thai university students were invited to join this research via questionnaire surveys. The collected data were analyzed using a path analysis technique. Findings from the analysis revealed two factors, namely perceived usefulness and perceived value positively predicted the student trust. Moreover, it was observed that technology readiness positively predicted both ease of use and perceived usefulness while ease of use positively predicted perceived usefulness and perceived value. Additionally, perceived value, student trust, and perceived usefulness determined students' intention to adopt smart classrooms. Finally, the involvement of technological innovation enhanced the associations: (1) between perceived usefulness and adoption intention and (2) between trust and adoption intention. These results offer supportive evidence for the newly proposed theoretical model that highlights the associations between perceived value, trust, perceived usefulness, and adoption intention. Overall, this research contributes to the understanding of the associations between technological and psychological factors, paving the way for students' decision to adopt smart classrooms in higher education. Introduction Technology readiness is used to upgrade and modernize the current facilities giving users more enhancements of information technology (IT) available for their utilities (Hekmatmehr et al., 2024). The IT enhancements can provide the utmost digital technologies to users to utilize for different purposes, namely storage, processing, and transmission of data and information (Talentedge, 2021). This encompasses a spectrum of hardware including laptops, servers, networks, storage devices , software, and other digital innovations. IT in a certain application system serves as a convenient function "ease of use" which assists users in accomplishing their transactions with free effort (Shah et al., 2024). Meanwhile, it also facilitates users' decision-making in management, strategies, operations, and communication efficiently and effectively. Therefore, the influences of technology readiness and ease of use in IT can develop perceived usefulness (Khan and Khan, 2024) which users believe that the IT of the application system can help them perform better work productivity. Therefore, investing in new IT is considered the key decision for all users, and insights regardless of the basis for this decision need to be forthcoming in information system research. To catch up with technological advancement, university students also changed their learning attitudes and behaviors requiring their universities to provide them with upgradable learning assistance (Dimitriadou and Lanitis, 2023). In response to this situation, higher education institutions have to integrate their advanced IT and innovations to modernize their learning facilities so that all students can obtain greater benefits, namely fast decision-making, more research solutions, lower costs, and learning effectiveness and efficiency. The result of this integration gives students newly modernized learning facilities called "Smart Classrooms" where students can get their topmost educational services from their universities (Aguilar et al., 2018; Bdiwi et al., 2019). The smart classrooms provide students with technology
... Since 2012, China has attached great importance to economic risks and recognized the urgency of preventing and responding to major economic risks. China's good planning also clearly demonstrates the need to maintain financial stability, guard against systemic risks, and ensure risk-free performance (Ndicu et al., 2023). China has raised the issue of preventing financial risks, especially systemic risks, which is one of the major issues and tasks of China's financial sector (Chen et al., 2019). ...
Article
Full-text available
China’s economy is constantly facing potential economic threats and regional economic risks. In view of China’s huge economic scale and unstable regional economic and financial development, it is necessary to investigate and prevent the impact of regional financial risks on China’s economic development. The development of digital finance has further changed the face of the financial sector and increased the uncertainty of systemic financial risks. Therefore, improving financial security and avoiding risks is particularly important. This problem must be solved. On this basis, the impact of digital financing on regional systemic economic risks will be analyzed. This paper shows that digital finance can effectively reduce the economic risk of the regional system, especially at the deep level. The analysis of medium-term financing mechanisms shows that digital financing can significantly alleviate the pressure of government debt, effectively alleviate local financing constraints, and thus reduce regional systemic financing risks. Effective external financial regulatory policies have alleviated digital financial risks to a certain extent and effectively reduced the impact of regional systemic financial risks. Only the eastern region can effectively reduce the economic risk of the regional system. This conclusion is entirely correct, and digital financing can effectively reduce broader regional and regional systemic financing risks compared to municipalities. The study will provide local authorities with useful information on how to prevent and respond to systemic financial risks and develop appropriate regulatory measures.
Article
This study investigates the significant influence of patriarchy on the potential acceptance and use of local digital government innovations in resource-constrained countries, building on studies that highlight patriarchy’s impactful role in shaping innovation. The Unified Theory of Acceptance and Use of Technology (UTAUT) was adopted as the evaluation theory ( n = 270) using Ethiopia as a case study. The results from structural equation modeling (SEM) reveal that patriarchy moderates the relationship between facilitating conditions and usage behavior. Contrary to conventional assumptions, we found that despite facing systemic barriers, women demonstrated higher engagement levels with the local digital innovation compared to their male counterparts, even when they did not perceive direct job-related benefits. This revelation not only challenges prevailing gender stereotypes but also underscores the resilience of women in circumventing patriarchal constraints. The study significantly contributes to theory by contextualizing the UTAUT model within a patriarchal framework, bringing out how societal norms and gender dynamics shape technology adoption in public sector settings. Practically, our findings advocate for gender-sensitive policies and interventions to bridge digital divides, emphasizing the need for inclusive strategies that account for underlying societal structures. By providing empirical evidence from a resource-constrained setting, this research offers important insights for policymakers, practitioners, and researchers aiming to foster equitable digital engagement and harness the full potential of digital government innovations.
Article
This study investigates the significant influence of patriarchy on the potential acceptance and use of local digital government innovations in resource-constrained countries, building on studies that highlight patriarchy’s impactful role in shaping innovation. The Unified Theory of Acceptance and Use of Technology (UTAUT) was adopted as the evaluation theory (n= 270) using Ethiopia as a case study. The results from structural equation modeling (SEM) reveal that patriarchy moderates the relationship between facilitating conditions and usage behavior. Contrary to conventional assumptions, we found that despite facing systemic barriers, women demonstrated higher engagement levels with the local digital innovation compared to their male counterparts, even when they did not perceive direct job-related benefits. This revelation not only challenges prevailing gender stereotypes but also underscores the resilience of women in circumventing patriarchal constraints. The study significantly contributes to theory by contextualizing the UTAUT model within a patriarchal framework, bringing out how societal norms and gender dynamics shape technology adoption in public sector settings. Practically, our findings advocate for gender-sensitive policies and interventions to bridge digital divides, emphasizing the need for inclusive strategies that account for underlying societal structures. By providing empirical evidence from a resource-constrained setting, this research offers important insights for policymakers, practitioners, and researchers aiming to foster equitable digital engagement and harness the full potential of digital government innovations.
Article
Full-text available
The National Innovation System (NIS) approach exists today in multiple terminologies, through a variety of conceptualizations all seeking to provide real means of action to public decision-makers on the issue of innovation, knowledge and economic development. This approach was originally defined by and for high-income countries and not for low- and middle-income countries. Based on the classification of the countries of the World Bank on the Gross National Income of the countries studied, our article proposes to focus on the relevant indicators, not predefined upstream, in order to measure and evaluate the systemic innovation of the low- and middle-income countries, from a learning economy perspective. To answer this, we propose a qualitative model that we validate in the case of Senegal. A low-income economy, it draws most of its efforts not in terms of S&T but more broadly in its learning policy, its reforms on higher education or proposals on entrepreneurship. These efforts are commendable in an economy where macroeconomic conditions are holding back its growth. The originality of our research relates to the implementation of these indicators and the lessons it brings to Senegal on the richness of the exploitation of capacities and skills as a vector of a learning economy.
Article
Full-text available
This article investigates the asymmetric effect of internet access (index of the internet) on economic growth in 42 sub-Saharan African (SSA) countries over the period 2008–2018. The estimation procedure is obtained following a dynamic panel threshold regression technique via 1000 bootstrap replications and the 400 grids search developed by Hansen (1996, 1999, 2000). The investigation first explores the presence of inflection points in the relationship between internet access and economic growth through the application of Hansen’s threshold models. The finding from the nonlinearity threshold model revealed a significant internet threshold-effect of 3.55 percent for growth. The article also examines the linear short-run effect of internet access on economic growth while controlling for the effects of private sector credit, trade openness, government regulation, and tariff regimes. The marginal effect of internet access is evaluated at the minimum, and the maximum levels of government regulation and tariffs regime are positive. On the other hand, the minimum and maximum levels of private sector credit and trade openness are negative via the interaction terms. The article advances the literature by its nonlinear transformation of the relevance of internet access on economic growth by exploring interactive mechanisms of internet access versus financial resource, internet access versus trade, internet access versus government regulation, and internet access versus the tariff regimes from end-user subscriptions. In policy terms, the statistical significance of the joint impact of government regulations and tariff regimes is relevant in the operation of the telecommunication industry in SSA countries.
Article
Full-text available
This paper explores the regional innovation ecosystem (RIE) in an effort to fully understand its static and dynamic nature. We investigate how organisations coevolve within an ecosystem and how it affects their ecosystems. Based on a longitudinal, qualitative in-depth case study analysis of the three most representative Chinese RIEs, we empirically explore and validate a 4C framework. The framework includes construct, cooperation, configuration and capability and offers insights into 1) a better redistribution of roles and coordination of ecosystem resources, 2) delivering a better understanding of the dynamic and co-evolution nature of ecosystem development and 3) inspiring the practitioners to further explore their complementary partners. The key findings suggest importance of within- and inter-RIE complementarity-based collaboration, which – with appropriate and well-informed governmental support – can significantly boost the national innovation system.
Article
Full-text available
This paper explores how THA contribute to the understanding and promotion of industrial sustainability in Africa. There is a growing interest in the promotion of industrial sustainability in African countries; however, this attention is without much theoretical understanding. The new development agenda for African economies is industrial sustainability. While the agenda is possible through well-managed interactions between industries, universities, and governments, an exploration of how this can happen remains less understood. Using a systematic review approach, a thematic analysis of the triple helix literature revealed that despite the current limitations, stakeholders can find common grounds to leverage available opportunities to improve innovation and knowledge-based industrialization towards industrial sustainability. This paper proposes a conceptual model and research propositions to guide future research that seeks to illustrate how key stakeholders in the triple helix framework can effectively contribute to social, economic, and environmental wellbeing through industrial sustainability. This paper concludes that maximizing enablers and minimizing barriers that confront possible interconnections and interrelationships between universities, industries, governments, and their intermediaries could be a useful starting point towards the understanding and promotion of industrial sustainability in Africa.
Article
Full-text available
Traditional radial DEA models treat DMUs as black boxes, whose internal structures are ignored, and measure input and output changes proportionally. On the other hand, network DEA models consider the internal structure of a DMU as a network system where sub-processes are connected by intermediate products aside from consuming main inputs and producing final outputs. The interest in network DEA has increased over the years producing different types of formulations including the network slacks-based measure DEA (NSBM). NSBM is a non-radial network approach suitable for measuring efficiencies when inputs and outputs may change non-proportionally. However, NSBM models and some of its recent developments failed to adhere to three important efficiency measurement issues: (a) able to properly define overall and divisional efficiencies, (b) able to identify Pareto-Koopmans efficiency status, and (c) able to show equivalence of primal (multiplier) and dual (envelopment) forms of the network DEA model. This study addressed these issues based on the NSBM approach and compared the results of the proposed network SBM model with other existing models in the literature. A numerical study on 10 electric power companies further illustrated the use and significance of the proposed network SBM model in efficiency measurement.
Article
Full-text available
This study aims to assess the contribution of international trade to efficiency in innovation for members of the OECD. It will do so by adopting a novel analysis on this theme by using Data Envelopment Analysis combined with regressions. The results indicate that being a member of the Asia-Pacific Economic Cooperation is significantly correlated to an increase in efficiency gains while being a member of the European Union does not correlate with the same benefits in this area.
Article
Full-text available
Innovativeness is one of the key factors stimulating economic growth. Improving innovative capacities is especially important for developing countries. The Latin American region is characterized by a variety of innovation policies. In this article, the author attempts to answer the question of which Latin American countries most efficiently spend funds on R&D. The study presented in this article also verifies the hypothesis that increased spending on R&D does not result in a proportional increase in the intended innovative results. The main research methodology employed is data envelopment analysis (DEA), which allows for assessing input-output efficiency and indicates the efficiency frontier for the period between 2000 and 2017.
Article
Full-text available
In the paper evaluation of research and development efficiency change in EU28 countries between 2010 and 2015. The authors used the non-radial and non-oriented Malmquist index of available R&D indicators of EU28 countries (five inputs and two outputs) and have found six groups of EU28 countries from the viewpoint of three index terms values (efficiency shift, frontier shift and Malmquist index). The relatively best group of countries with progress in both efficiency shift and frontier shift terms (Malmquist index >1) is represented by two countries: Italy and Germany. The last group contains the six relatively worst countries with regress in all three terms (efficiency shift, frontier shift and Malmquist index < 1): Netherlands, Greece, Malta, Poland, Luxembourg and Portugal. It was found by means of the nonparametric test that post-socialist countries are not different from capitalist EU countries from the viewpoint of efficiency change between 2010 and 2015. The biggest change in R&D efficiency using the Malmquist index between 2010 and 2015 was found in Spain, Latvia, Denmark and Ireland. Conversely, the smallest change in R&D efficiency is demonstrated by Poland, Luxembourg and Portugal. JEL Classification: C61, 032, R11, R12
Article
Purpose The rapid development of information and communication technology (ICT) over the past decade has enabled heterogeneous economic sectors to be more integrated, leading to a significant effect on nation’s growth across OECD countries. The objective of this study is to estimate the short run and long run inter-linkages among ICT, innovation technology, globalization, and economic growth for the period 1996-2017 in OECD countries. Design/methodology/approach This research provides some sophisticated methodologies by using principal component analysis to construct ICT and innovation indices and follow up by employing the panel cointegration test, pooled mean group regression, fully modified ordinary least squares and dynamic ordinary least squares as sophisticated estimation techniques, panel Granger causality and forecast error variance decomposition to examine the robustness of the causal association in the findings. Findings The empirical results herein suggest that ICT, innovation and globalization positively contribute to economic growth, while the causality findings reveal strong endogenous relationships among both ICT mobile and internet use, innovation development, globalization and economic growth in both short and long run. The findings further imply that OECD countries have yet to promote economic growth from ICT infrastructure expansion, the enlargement of technology innovation and the spread of globalization. Practical implications The particular policy recommendation is to reinforce the investment and establishment of a reliable ICT infrastructure as well as innovation technology to create sustained economic growth in this progressively interconnected world. Originality/value This study is valuable from policy and decision-makers’ perspective, as it highlights the significance of ICT infrastructure development, innovation enlargement and globalization to elevate the economic growth in OECD countries.