Heterogeneous effects of frontier technology adoption on economic growth in Africa

The Fourth Industrial Revolution is ushering economies into a new era of technological transition, driven primarily by frontier technologies. While the adoption of these technologies is growing rapidly in the Global South, empirical evidence concerning their economic impacts in Africa are hard to find. This study advances the innovation and growth literature in this regard by analysing macro data from 39 African countries. Findings from quantile regression reveal that frontier technology adoption (FTR) has a modest positive effect on growth. Second, democracy amplifies the impact of FTR, but only at higher levels of egalitarianism. Third, although FTR is growth-enhancing across all growth quantiles, its impact diminishes from the 1st to the 9th. However, in the presence of egalitarian democracy, FTR significantly boosts growth from the 1st to the 9th quantiles. We conclude that progress in egalitarianism and investment in frontier technology readiness are essential for sustained economic growth in Africa.