The Technological Innovation is a concept developed within the scientific field of innovation studies which serves to explain the nature and rate of technological change. A Technological Innovation can be defined as ‘a dynamic network of agents interacting in a specific economic/industrial area under a particular institutional infrastructure and involved in the generation, diffusion, and utilisation of technology’.

The approach may be applied to at least three levels of analysis: to a technology in the sense of a knowledge field, to a product or an artefact, or to a set of related products and artefacts aimed at satisfying a particular [societal] function’. With respect to the latter, the approach has especially proven itself in explaining why and how sustainable (energy) technologies have developed and diffused into a society, or have failed to do so.

The concept of a Technological Innovation was introduced as part of a wider theoretical school, called the innovation approach. The central idea behind this approach is that determinants of technological change are not (only) to be found in individual firms or in research institutes, but (also) in a broad societal structure in which firms, as well as knowledge institutes, are embedded. Since the 1980s, innovation studies have pointed out the influence of societal structures on technological change, and indirectly on long-term economic growth, within nations, sectors or technological fields.

The purpose of analysing a Technological Innovation is to analyse and evaluate the development of a particular technological field in terms of the structures and processes that support or hamper it. Besides its particular focus, there are two, more analytical, features that set the Technological Innovation approach apart from other innovation approaches.

Firstly, the Technological Innovation concept emphasises that stimulating knowledge flows is not sufficient to induce technological change and economic performance. There is a need to exploit this knowledge in order to create new business opportunities. This stresses the importance of individuals as sources of innovation, something which is sometimes overseen in the, more macro-oriented, nationally or sectorally oriented innovation approaches.

Secondly, the Technological Innovation approach often focuses on system dynamics. The focus on entrepreneurial action has encouraged scholars to consider a Technological Innovation as something to be built up over time. This was already put forward by Carlsson and Stankiewicz:

Technological Innovations are defined in terms of knowledge/competence flows rather than flows of ordinary goods and services. They consist of dynamic knowledge and competence networks. In the presence of an entrepreneur and sufficient critical mass, such networks can be transformed into development blocks, i.e. synergistic clusters of firms and technologies within an industry or a group of industries.

Technological innovation is widely viewed as the key to economic growth, there is no consensus on what makes some industries and countries more "innovative" than others, or exactly how innovations fuel an economy. The authors, leading economists and political scientists, have compiled evidence from nine countries and nine industries to draw several cautionary lessons for policymakers. For example, while innovation drove a late-1990s U.S. productivity surge in a few key computer-related industries, there is no evidence that this had a transformative effect on the rest of the economy. Conversely, Japan's extended slump was caused not by a failure to innovate, as many believe, but rather by deep-seated structural and macroeconomic failures.

Information technology accounts for more than one-third of recent U.S. economic growth and nearly two-thirds of corporate capital investment. "The new economy" appears omnipresent, but little is actually known about its workings. This book explores the phenomenon in studies of the United States, Japan, Germany, France, the United Kingdom, and the Nordic states. Nine industry studies examine the Internet, computers and semiconductors, banking, securities trading, venture capital, energy, agricultural biotechnology, pharmaceutical biotechnology, and automobiles.

The relationship between innovation and economic growth has been well studied. However, that is not to say that it is well understood. Renowned scholars continue to work with incredibly simplified models of an incredibly complex economy. Consequently, empirical results are usually carefully annotated with caveats noting the limitations of all findings and the great uncertainties that remain concerning fundamental assumptions in the field.(Statistics Canada, Innovation Analysis Bulletin,2002)

A theoretical link between innovation and economic growth has been contemplated since at least as early as Adam Smith (1776). Not only did he articulate the productivity gains from specialization through the division of labour as well as from technological improvements to capital equipment and processes, he even recognized an early version of technology transfer from suppliers to users and the role of a distinct R&D function operating in the economy:

“All the improvements in machinery, however, have by no means been the inventions of those who had occasion to use the machines. Many improvements have been made by the ingenuity of the makers of the machines, when to make them became the business of a peculiar trade; and some by that of those who are called philosophers or men of speculation, whose trade it is not to do anything, but to observe everything; and who, upon that account, are often capable of combining together the powers of the most distant and dissimilar objects. In the progress of society, philosophy or speculation becomes, like every other employment, the principal or sole trade and occupation of a particular class of citizens… and the quantity of science is considerably increased by it. ” (Smith,1776)

Although the relationship between innovation and growth had been articulated at an intuitive level for some time, innovation was not introduced into formal economic growth models until 1957 (Solow, 1957). Robert Solow, a professor at MIT, was awarded a 1987 Nobel Prize in Economics for this and related work. Like scholars before him, he defined growth as the increase in GDP per hour of labour per unit time. He carefully measured the fraction of this growth that was actually attributable to increases in capital, such as investments in machinery and related equipment, since the theory of the day was that capital accumulation was the primary determinant of growth. However, capital accumulation accounted for less than a quarter of the measured growth. Solow’s insight was in attributing the remainder of the growth, the majority share, to "technical change." The magnitude of the residual calculated in this empirical study placed the role of innovation in economic growth squarely on centre stage, where it has remained for the past half century. Since Solow’s contributions, the relationship between innovation and growth has been modeled in increasingly sophisticated ways. Perhaps the most notable recent advances came from Lucas (1988) and Romer (1986, 1990), who emphasized the concepts of human capital and knowledge spillovers, respectively. Following the recent idea of distinguishing human capital, which is developed by investments in education and training, from physical capital, Lucas modeled human capital with constant rather than diminishing returns, thus offering useful insights into the critical role of a highly skilled workforce for long-term growth. Romer endogenized innovation in the growth model by introducing knowledge spillovers, which resulted in deep implications for how scholars think about growth.

1.2 STATEMENT OF PROBLEMS

Every nation begins its journey of development with predominantly traditional systems characterized by poor products and poor technologies. The right kind of education, infrastructure, and institutions will put them on a development track, but not before they encounter a great deal of resistance from the old guard and various interest groups.

To be able to respond to the pressures of rapidly changing technology and management, developing need strong modern institutions. These institutions form the backbone of democratic functioning for law and order, defense, security, industry, commerce, education, technology and many other related activities.

In today's fast-changing Technological world, developing nations are now placing greater emphasis on science and technology and setting up more institutions to promote science. Today, developing nations are in dire need of technology to increase productivity.

But these technologies are in the hands of Western nations, who are trying very hard to block their coming to the market. If leaders in developing nations do not change and adopt some radical economic reforms, they will be left behind with a primitive production base and obsolete technology and products.

1.3 OBJECTIVE OF THE STUDY

The main purpose of this research work is evaluate technological and industrial innovation to economics with particular reference to Nigeria and Enugu state precisely and the specific objectives of this research work includes:

1. To examine the impact of technological and industrial innovation to economic growth of Nigeria.

2. To examine the problems associated with technological and industrial innovation.

3. Proffer possible solution to the problems

1.4 RESEARCH QUESTION

The following research questions were formulated in this research work:

1. What are the impact of technological and industrial innovation to economic growth of Nigeria?

2. Is there any relationship between economic growth and technological innovation?

3. What are the problems associated with technological innovations in Nigeria and Enugu state in particular?

1.5 SIGNIFICANCE OF THE STUDY

It is important to point out that on completion of this work by the researcher, it would be of immense significance to the following:

RESEARCHERS: Other researchers on the same or similar topic would find this work helpful as it will form a base of review of related literature and also a stepping-shine for future researchers.

ECONOMY: This work will help to improve the national output and thereby national income. This is because of improvement in the efficiency and effectiveness of the operations as well as the overall success of the state.

LAW MAKERS: The law makers will implement policies that will enhance the technological improvement in Nigeria, The standard of corporations will be increased as a result of the knowledge acquired from this research work.

1.7 SCOPE AND LIMITATION OF THE STUDY

The researcher considered precedent to limit the research work to Enugu state and its environs.

During the course of writing the project work the research encountered some problem associated with finance, time and data collections.

FINANCE: Finance is the background of every plan going by the present economic hardship facing the entire country, I have limited finance which will not also found it difficult to purchase much of my requirement so I could only carry out the research works much, and my purpose could carry me.

TIME: One of the greatest shortcomings was time factor for the mere fact that I am a student taking recognizance of the academic region facing me as a final year student and it is incumbent on me to attend classroom lectures carryout assignment, writing of term papers. Therefore I could not find it convenient in completing such until this task, particularly in the area of field survey, which involves going out in Enugu metropolis.

1.8 DEFINITION OF TERMS

Key terms are used in the study have been defined to enhance understanding of such variables in the context of this research.

Technology: Is the making modification, usage, and knowledge of tools, machines, techniques, crafts, systems, method of organization, in order to solve a problem, improve a preexisting solution to a problem, achieve a goal or perform a specification function and arrangement and procedures technologies.

Industry: Is the production of an economic good or serves within an economy. And raw materials industries may be agriculture based, manue based, mineral based, porent based and the amount of capital invested number of people employed and the volume of production and manufacturing became a key sector of production and labour.

Innovation: The process by which an idea or innovation is translated into a good or service for which this process. To be called an innovation, an idea must be replicable at an economical cost and must satisfy a specific needs information, imagination and initation.

Economic Growth: A positive change in the level of production of goods and services by a country over a certain period of time. Norminal growth defined as economic growth including inflation while real growth is norminal growth minus inflation and is usually brought about by technological innovation and positive external forces.

Development: Is the systematic use of scientific and technical knowledge to meet specific objectives or requirements. And an extension of the theoretical or practical aspects of a concept, design, discovery or innovation and economic and social transformation.

Technological growth: Is the history of technology is the history of the innovation of tools and techniques, and is similar in many ways to the history.

Keys: Technology, innovation, development and industry and economic growth.