The Role of Innovation in Promoting Economic Growth and Sustainability
DOI:
https://doi.org/10.54518/fid.2.1.2024.1251Keywords:
Economic Growth, Innovation, Productivity, Sustainability, TechnologyAbstract
Technological advancement and digital transformation have significantly reshaped the economic and business environment. These changes require organizations to continuously adapt through innovation to maintain competitiveness and achieve long-term economic sustainability. This study aims to analyze the role of innovation in promoting economic growth and supporting economic sustainability. The research employed a quantitative approach using a survey method and Structural Equation Modeling–Partial Least Squares (SEM-PLS) analysis. The findings indicate that innovation positively affects economic growth by improving productivity, efficiency, and organizations' ability to create value. Furthermore, innovation contributes to economic sustainability by strengthening organizational adaptability, resilience, and competitiveness in responding to changes in the business environment. The results also reveal that integrating innovation and digital transformation is crucial to fostering sustainable economic growth. Therefore, organizations should consider innovation as a strategic priority to enhance economic performance while maintaining long-term sustainability. These findings provide both theoretical and practical insights into the importance of innovation as a key driver of sustainable economic development.
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