Is Sustainable Innovation an Impetus to Sustainable Development Goals? Evidence From the EU

Khalid Khan · Adnan Khurshid · Chi‐Wei Su

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Sustainability and Innovation in Business Environmental Sustainability in Business Energy, Environment, Economic Growth

Abstract

ABSTRACT Innovations in environmental technology are essential to address sustainability challenges. This study examines the sustainable development goals (SDGs) relationship with environmental technological innovation (ETI) in EU countries during 2000–2022, using a panel bootstrap causality approach. The result indicates bidirectional causality between SDGs and ETI. Furthermore, the findings indicate that SDGs have a causal impact on ETI in Belgium, Denmark, Germany, the Netherlands, Iceland, Slovakia, Slovenia, and Spain. Similarly, ETI has a significant influence on SDGs in Austria, Estonia, France, Germany, Latvia, the Netherlands, Poland, and Sweden. However, the remaining countries have no causal relationship between SDGs and ETI. The robust results further validate and confirm the reliability of the main findings, supporting the theoretical framework. Policymakers should incorporate the principles of SDGs into national innovation programs, providing targeted financing, incentives, and regulatory frameworks to support initiatives that align with SDGs.

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References

2004General Diagnostic Tests for Cross Section Dependence in Panels 2007Testing slope homogeneity in large panels 1970Efficient Inference in a Random Coefficient Regression Model 2007Panel cointegration tests of the Fisher effect 2018Innovations for sustainable development: Moving toward a sustainable future 2021Energy efficiency: The role of technological innovation and knowledge spillover 2020Impact of technological innovation on energy efficiency in industry 4.0 era: Moderation of shadow economy in sustainable development 2018Information linkage, dynamic spillovers in prices and volatility between the carbon and energy markets

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