Effect of Foreign Direct Investment on Technology Transfer and Innovation Growth in Nigeria’s Technology Industry
Abstract
This study empirically examines the effect of foreign direct investment (FDI) on technology transfer and innovation growth in Nigeria’s technology industry using annual secondary data spanning the period 2010–2023. Anchored on technology spillover and endogenous growth theories, the study employs multiple regression techniques to quantify the impact of FDI inflows and complementary structural factors on innovation performance. The regression results reveal that FDI exerts a strong, positive, and statistically significant effect on innovation growth in Nigeria’s technology sector. The technology transfer index also demonstrates a significant positive influence, confirming that FDI contributes to innovation primarily through knowledge spillovers, skills diffusion, and technological upgrading. Human capital development, infrastructure development, and research and development (R&D) expenditure further exhibit positive and significant effects, indicating that the innovation benefits of FDI are amplified in the presence of supportive domestic absorptive capacity. The model exhibits strong explanatory power with a high coefficient of determination and satisfactory diagnostic statistics, confirming the robustness of the estimated relationships. Overall, the findings establish that FDI is a critical driver of innovation growth in Nigeria’s technology industry, both directly and through technology transfer channels. The study therefore underscores the importance of policies that attract innovation-oriented FDI, strengthen domestic technological capabilities, and expand infrastructure investment to sustain long-run innovation-led industrial growth in Nigeria.
Keywords
Foreign Direct Investment, Technology Transfer, Innovation Growth, Technology Industry, Nigeria.
Citations
IRE Journals:
Dr. Chukwuemeka Ifegwu Eke, Ochia Dorathy Adaobi; Ajumobi Folashade Victoria, Kala Iliya John; Gloria Omosun; Hassana Mamman, Yusuf Obeidat Ayoola; Garba Fatima Sule-Usman; Faruk Onibudo, Oyele Oluwasegun Meshach; Stella Uzuogu; Bello Zainab Yusuf "Effect of Foreign Direct Investment on Technology Transfer and Innovation Growth in Nigeria’s Technology Industry" Iconic Research And Engineering Journals Volume 9 Issue 6 2025 Page 867-877 https://doi.org/10.64388/IREV9I6-1712721
IEEE:
Dr. Chukwuemeka Ifegwu Eke, Ochia Dorathy Adaobi; Ajumobi Folashade Victoria, Kala Iliya John; Gloria Omosun; Hassana Mamman, Yusuf Obeidat Ayoola; Garba Fatima Sule-Usman; Faruk Onibudo, Oyele Oluwasegun Meshach; Stella Uzuogu; Bello Zainab Yusuf
"Effect of Foreign Direct Investment on Technology Transfer and Innovation Growth in Nigeria’s Technology Industry" Iconic Research And Engineering Journals, 9(6) https://doi.org/10.64388/IREV9I6-1712721
About IRE Journals
IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
Important Links
For Authors
Volume 8:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 7:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 6:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 5:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 4:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12Volume 3:
Issue 1, Issue 2, Issue 3, Issue 4, Issue 5, Issue 6, Issue 7, Issue 8, Issue 9, Issue 10, Issue 11, Issue 12