The impact of technology innovation and R&D on firms' performance: an empirical analysis of Nigeria's service sector

摘要

This paper uses econometric model to analyse the impact of technological innovation and R&D on firm performance in the Nigerian service sector. The sector is attracting interest in policy circle because it has become the fastest growing sector globally. The analysis is based on data obtained from the Nigeria's innovation survey, 2008 undertaken among 500 enterprises in the service sector with about 41% response rate. The instrument was guided by the third edition of the Oslo Manual standardised through validation workshops under the NEPAD ASTII initiative. The result shows that technological acquisition, training and in-house R&D positively influence technological innovation while government support and embodied knowledge are insignificant. Also, technology innovation and R&D have positive impact on firms' performance. This paper offers an opportunity to understanding the impact of technology innovation and R&D on performance of service firms in developing country context.