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From Digital Transformation to Innovation: An Institutional-Level Evaluation of OECD Countries’ Sustainable Development Pathways

Author

Listed:
  • Fatih Bıyıklı

Abstract

This study investigates the impact of digitalization, research and development (R&D) expenditures, and high-technology exports on national innovation performance across OECD countries from 2010 to 2023. Drawing on panel data analysis and grounded in the theoretical frameworks of dynamic capabilities, national innovation systems, and the resource-based view, the research employs the Global Innovation Index (GII) as a proxy for innovation performance, while utilizing the ICT Development Index (IDI), R&D intensity, and high-tech export share as explanatory variables. Fixed effects regression analysis reveals that digitalization and R&D expenditures significantly enhance innovation output, while high-tech exports exhibit a weaker and more heterogeneous relationship. The findings emphasize the critical role of digital infrastructure and knowledge investment in strengthening innovation ecosystems, particularly in the context of sustainable development goals. By focusing on cross-country dynamics and long-term trends, this study contributes to both organizational theory and policy discourse, offering evidence-based insights for designing more inclusive and resilient innovation strategies in an increasingly digital global economy.

Suggested Citation

  • Fatih Bıyıklı, 2025. "From Digital Transformation to Innovation: An Institutional-Level Evaluation of OECD Countries’ Sustainable Development Pathways," Journal of Research in Economics, Politics & Finance, Ersan ERSOY, vol. 10(SI), pages 88-106.
  • Handle: RePEc:ahs:journl:v:10:y:2025:i:si:p:88-106
    DOI: 10.30784/epfad.1813025
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    References listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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