Technological innovation, R&D, FDI, and governance as drivers of economic growth: evidence from West African countries

This study investigates the effects of technological innovation (measured by patent applications), research and development (R&D), foreign direct investment (FDI), and governance on GDP per capita growth in 15 West African (ECOWAS) countries over 1991–2023. Using panel data and a range of robust econometric methods, including fixed-effects models, quantile regression, and system GMM, we address endogeneity and explore heterogeneity across income levels, time periods, and technological intensity. Results show that technological innovation and R&D are strong positive drivers of growth, with innovation effects strengthening at higher growth quantiles and in lower-middle-income countries. FDI has limited impact, likely due to weak absorptive capacity, while governance effects are mixed, turning negative in higher-performing contexts. These findings highlights the need for West African policymakers to prioritize R&D investment, patent-friendly policies, infrastructure improvements to better leverage FDI, and targeted governance reforms to support innovation-led growth.