The Impact of Global Innovation on Sustainable Development in Asian Countries

Abstract

This study investigates the impact of global innovation on sustainable development across Asian countries during the period 2007–2023. Employing the system GMM, the research addresses key econometric challenges such as endogeneity, heteroskedasticity, and autocorrelation in dynamic panel data. The model includes the global innovation index (GII), sustainable development goals (SDG), and control variables such as trade openness (TOP), foreign direct investment (FDI), urbanization rate (UBA), and inflation (INF). The empirical findings reveal that GII, FDI, INF, and UBA exert statistically significant and positive effects on SDG. Conversely, TOP may have a negative impact when not aligned with sustainability standards. These results provide important empirical evidence to support the formulation of innovation-driven policies tailored to advance SDG progress in the Asian context.