Challenges against innovation and drivers in Subsahara African economies (1976-2012): A cointegration analysis

Abstract

The study was designed to analyze the challenges against innovations and econometrically deduce the
long-run determinants of innovation levels in Sub-Sahara Africa. The study relied on secondary data
accessed from World Bank data base spanning over 37 years (1976- 2012). Data obtained were analyzed
using canonical cointegration regression (CCR) method. It was found that poor education (secondary
school enrollment) was exerting negative influence on innovation levels in SSA (p<0.05) in the long-run.
Credit to the private sector as well as value of official aids received, labour mobility proxied by number
of passengers transported via air planes and electricity consumption were significantly and positively
influencing the long-run level of innovation in the region. Their t-statistics were all significant at p<0.01.
Based on the findings, the study recommended increased funding of education, R&D as well as
increasing access to finance for entrepreneurship development; international communities and donors
especially should be encouraged to contribute to building global innovation systems by supporting
SSA firms: While SSA countries should remove barriers to labour mobility through flexible immigration
policies.