The Sustainable Innovation and Digital Competitiveness in N11 Economies: A Framework Based on the SIDI Index

This study evaluates the digital competitiveness and innovation capacity of the N11 (Next Eleven) emerging economies by introducing the composite Sustainable Innovation and Digital Competitiveness Index (SIDI). Drawing on globally recognized databases and employing the TOPSIS method alongside panel regression analysis, the SIDI index ranks N11 countries and identifies the drivers of their performance between 2017 and 2023. The findings reveal striking disparities: South Korea, scoring 0.85, tops the list, owing to its extensive R&D investment, strong digital governance, and highly skilled tech workforce. In contrast, Bangladesh (0.42) and Nigeria (0.46) rank lower due to limited broadband penetration, pronounced socioeconomic inequalities, and continued reliance on non-renewable energy. Countries such as Indonesia (0.61) and the Philippines (0.55) exhibit uneven progress and face regulatory challenges. Key factors influencing the SIDI index include advanced digital infrastructure, reductions in the NEET rate, and the expansion of scalable renewable energy. Case studies of Turkey and Vietnam illustrate how targeted foreign direct investment (FDI) in the technology sector, coupled with inclusive policies such as digital literacy initiatives, led to a respective 18% and 22% rise in their SIDI scores since 2017. The research underscores the interdependence of three domains—(i) infrastructure, (ii) social equity, and (iii) environmental sustainability—and recommends that N11 countries adopt flexible strategies inspired by global models such as Germany’s Industry 4.0, adapted to local conditions. To accelerate inclusive digital transformation, policymakers should prioritize cross-sectoral investments in STEM education, green energy projects, and regional collaborations to harmonize standards and share best practices.