The role of innovation in sustainable growth: A dynamic panel study on micro and macro levels 1990-2019

Innovation has become a critical factor in achieving sustainable growth through energy efficiency improvement and energy intensity efficacy at both the micro and macro levels. This study aims to explain the role of innovation in sustainability using panel data analysis at the micro (2009-2018) and macro levels (1990-2019). This study uses pooled OLS, fixed effect, common correlated effects pooled, first difference OLS, mean group, augmented mean group, random coefficient, common correlated effect estimator, and group-mean fully modified modeling. Technological progress at the micro and macro levels promotes sustainability. Innovation is only a necessary prerequisite for long-term sustainability but is not sufficient. The study shows how technology-related innovations at the micro (company) level are more important for green growth than non-technology innovations. A firm's ownership is also an essential driver of sustainability. The results should help owners and managers build sustainable business innovation models and policy-makers in designing sustainable growth models and policies.

Automated summary

This study examines the role of innovation in sustainability through panel data analysis and finds that technological innovation is more important for green growth, while ownership of firms is also a critical driver of sustainability.