Abstract
Technology innovation and trade openness have been playing strategic roles towards economic development in emerging and developing economies in recent time. This study explores the dynamic relationships between technological innovation, trade openness and GDP in Saudi Arabia between 1989 and 2019. The study used autoregressive distributed lag (ARDL) and the results show that GDP is cointegrated with technology innovation and trade openness, which signifies long run association among the variables. Moreso, using error correction model technology innovation and trade openness have short run impacts on economic growth. Furthermore, Pairwise Granger causality indicates a causality running from each of technology innovation and trade openness to GDP growth with no feedback. This supports an innovation-led and trade liberalisation economy. This result therefore suggests a more strategic opening of the Saudi Arabia’s economy to external trade and a massive investment in research and development and technology innovation by the Saudi government for the achievement of a strong, steady and sustainable economic growth by year 2030 and beyond.