Technological innovation and economic growth in Southern Africa: Application of panel dynamic OLS regression

The effect of technological innovation on economic growth has received significant attention in the developed world over the last decades due to its speedy development and potential impacts. However, little is known in the context of developing countries, arguably due to data challenges. This paper uses panel dynamic Ordinary Least Square regression with annual data from the World Bank and global economy (2004-17) to examine the empirical link between technological innovation and economic growth in Southern Africa. The study finds that technological innovation indicators such as researchers in research and development, graduates from information and communication technology, patents-nonresidents, graduates from science, technology, engineering and mathematics and scientific and technical outputs have significant positive relationship with per capita economic growth in the long run, but no relationship exists for patents-residents and government expenditure with per capita economic growth. Based on the findings, policy intervention and strategies that promote these indicators are recommended.