Connected Intelligence Technological Innovation for Industrial Productivity (Evidence From Nigeria's Economic Transition)

Abstract

This study examines the role of connected intelligence, proxied by digital connectivity, in enhancing industrial productivity in a developing economy, with specific reference to Nigeria. Anchored in the development economics and digital economy literature, industrial application is measured by gross domestic product (GDP) growth, while digital connectivity is captured by mobile internet subscriptions. Regulatory quality is included as a proxy for industrial reforms, and technological innovation—measured by information and communication technology (ICT) service exports is incorporated as a moderating variable. Quarterly time-series data covering 1996Q1–2024Q4 are analyzed using the Autoregressive Distributed Lag (ARDL) technique to estimate both short-run dynamics and long-run relationships. The empirical findings indicate that digital connectivity exerts a positive and statistically significant effect on
industrial application in both the short and long run. Regulatory quality alsodemonstrates a positive influence, confirming the importance of effective industrial reforms. Furthermore, the interaction between mobile internet subscriptions and ICTservice exports reveals that technological innovation significantly strengthens the productivity-enhancing impact of digital connectivity. The study concludes that connected intelligence is a critical driver of industrial productivity in Nigeria. Accordingly, it recommends prioritizing investment in digital infrastructure, expanding affordable mobile internet access, promoting ICT-driven innovation, and strengthening regulatory frameworks to maximize the developmental benefits of digital connectivity and foster sustainable industrial growth.