The Effect of Healthcare Innovation on Economic Growth in Nigeria, 1990-2024

Creativity is not just about solving problems, its also about impacting knowledge. In a fast- paced and dynamic world like ours, innovative ideas are one of the advances an economy really needs to place itself in front, especially in Nigeria.
The concept of health innovation is not disseminated enough in terms of research studies and government policies in Nigeria. There is a notable scarcity of research on health in Nigeria, and even fewer studies critically examine the primary factors contributing to health outcomes in the country. Therefore, the study examined how health innovation affect Nigeria's economic growth. It also addressed the impact of health on economic growth using crucial indicators like life expectancy and total factor productivity. Most existing studies focus on basic variables like health expenditure, using limited data and short time frames. This study addressed that gap by using a broader set of variables over a longer period. It offered a deeper, more comprehensive understanding of healthcare's role in economic growth.
This study employed a log-linear multiple regression model relied in the Solow-Swan growth theory. The model aided in the examination of key determinants of economic growth. The study applied the Ordinary Least Square (OLS) estimation technique to annual time series data.
The findings indicated that health innovation had a positive and significant relationship with gross domestic product, highlighting its role in driving economic growth. Health innovation, using the proxy variables life expectancy and total factor productivity, demonstrated a positive and significant relationship which suggested that a healthier and longer-living population can contribute to economic performance, while improvements in resource effectiveness also positively contribute to economic growth.
The study concluded that the interactive effect of life expectancy and total factor productivity on gross domestic product was positive and significant, highlighting the vital role of health innovation in driving economic growth in Nigeria. The study recommended that policymakers and governmental authorities prioritise investment in health innovation, recognising its essential contribution to Nigeria’s economic development.