Abstract

This study examined the relationship between technological innovation and productivity growth in the African manufacturing sector, arguing that the region’s ability to bridge its industrial output gap is fundamentally tied to how effectively it adopts, adapts, and diffuses technology across its production systems. The central problem lies in the sector’s continued dependence on labour intensive, low technology production methods that limit value addition, constrain export competitiveness, and leave firms vulnerable to external shocks. The study adopted the Technology Gap Theory and the Endogenous Growth Theory, alongside a qualitative systematic literature review methodology. It also made use of secondary data from peer reviewed academic journals, institutional reports, and policy documents published between 2014 and 2024. Findings revealed that technological innovation drives manufacturing productivity gains across the continent, with adoption remaining highly uneven. Large, export oriented firms captured the bulk of the benefits, while small and medium sized enterprises struggled under the weight of structural constraints, including inadequate infrastructure, limited financing, and shallow innovation ecosystems. A major conclusion is that the gap between technological potential and productive reality in African manufacturing is primarily institutional rather than technical. Governments are therefore urged to construct integrated industrial technology policies that simultaneously address financing access, innovation infrastructure, and skills development as part of a coherent productivity agenda.

Keywords: Technological innovation, Productivity growth, African manufacturing, Endogenous growth, Technology diffusion, Industrial policy

https://doi.org/10.5281/zenodo.21137836

Temitope Oluwafemi Ademola
Business Innovation, School of Business
Osiri University, Lincoln, Nebraska,
USA
+2348077301197, +2348102985374
ORCID: 0009-0005-5680-6040