Abstract:
A country's innovative capability remains a yardstick of its global competitive advantages, for a country to have an upper hand in a dynamic and competitive world it has to be innovative. Nigeria is not among the developed and or developing nations due to its innovative incapability and hence retards her developmental goals. The country's abandoned resources (wealth) and human capital gave her a little advantage over fellow African countries. This study examines the relationship between innovation and economic growth In Nigeria using the vector error correction model (VECM), and determines both shortrun and longrun causal relationships. Based on the result, there exists a longrun relationship between innovation and economic growth, so also the study found no shortrun but a longrun causal relationship between the study variable. Hence the study suggests enhancing innovation activities in virtually all sectors of the Nigerian economy.
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