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 also demonstrates a positive influence, confirming the importance of effective 
industrial reforms. Furthermore, the interaction between mobile internet subscriptions and ICT service 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.