IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v84y2026ics0160791x25003240.html

The interplay of technological innovation, human capital and civil liberties in advancing economic complexity and sustainable growth

Author

Listed:
  • Liu, Zhouding
  • Jackson, Ana

Abstract

This study presents the interaction between technological innovation, human capital, civil liberties, and natural resource rents in the formation of economic complexity and sustainable development in G-20 nations since the year 1990 and 2023. The use of Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) estimators in a cointegration model which takes care of structural break, the analysis shows that the variables have heterogeneous dynamics. The findings indicate that human capital has a powerful positive influence on technological innovation by highlighting its use as a key driver of knowledge generation. On the other hand, there is no significant relation between natural resource rents and innovation, which means that the abundance of resources does not necessarily slow down progress, and it is supported by proper policy frameworks. The economic complexity increases the pace of innovation and civil liberties represent both a positive but a negative impact when one is an independent country that portrays the nuances of the institutions of innovation. The general trend is to establish a constant increase in innovation throughout the G-20, which is the result of the introduction of globalization and digital transformation. These results indicate that policies that enhance the development of human capital, reinvestment of resources and profit into institutions are the keys to enhancing economic complexity and sustainable and innovational growth processes.

Suggested Citation

  • Liu, Zhouding & Jackson, Ana, 2026. "The interplay of technological innovation, human capital and civil liberties in advancing economic complexity and sustainable growth," Technology in Society, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:teinso:v:84:y:2026:i:c:s0160791x25003240
    DOI: 10.1016/j.techsoc.2025.103134
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X25003240
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2025.103134?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
    2. Adekoya, Oluwasegun B. & Kenku, Oluwademilade T. & Oliyide, Johnson A. & Al-Faryan, Mamdouh Abdulaziz Saleh & Ogunjemilua, Oluwafemi D., 2023. "Does economic complexity drive energy efficiency and renewable energy transition?," Energy, Elsevier, vol. 278(C).
    3. Khan, Zeeshan & Ali, Shahid & Dong, Kangyin & Li, Rita Yi Man, 2021. "How does fiscal decentralization affect CO2 emissions? The roles of institutions and human capital," Energy Economics, Elsevier, vol. 94(C).
    4. Chien, Fengsheng & Anwar, Ahsan & Hsu, Ching-Chi & Sharif, Arshian & Razzaq, Asif & Sinha, Avik, 2021. "The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries," Technology in Society, Elsevier, vol. 65(C).
    5. Ahmad, Manzoor & Zheng, Jianghuai, 2021. "Do innovation in environmental-related technologies cyclically and asymmetrically affect environmental sustainability in BRICS nations?," Technology in Society, Elsevier, vol. 67(C).
    6. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    7. Ali, Syed Ahtsham & Alharthi, Majed & Hussain, Hafezali Iqbal & Rasul, Farhat & Hanif, Imran & Haider, Jahanzaib & Ullah, Saad & ur Rahman, Saeed & Abbas, Qaiser, 2021. "A clean technological innovation and eco-efficiency enhancement: A multi-index assessment of sustainable economic and environmental management," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    8. Zhang, Yanyuan & Ding, Yanqi & Yan, Weichen, 2025. "United in green: Institutional dual ownership and corporate green innovation," Finance Research Letters, Elsevier, vol. 84(C).
    9. Joakim Westerlund, 2005. "New Simple Tests for Panel Cointegration," Econometric Reviews, Taylor & Francis Journals, vol. 24(3), pages 297-316.
    10. Ma, Dan & Zhu, Qing, 2022. "Innovation in emerging economies: Research on the digital economy driving high-quality green development," Journal of Business Research, Elsevier, vol. 145(C), pages 801-813.
    11. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    12. Huang, Yongming & Haseeb, Mohammad & Usman, Muhammad & Ozturk, Ilhan, 2022. "Dynamic association between ICT, renewable energy, economic complexity and ecological footprint: Is there any difference between E-7 (developing) and G-7 (developed) countries?," Technology in Society, Elsevier, vol. 68(C).
    13. Liu, Fengyu & Feng, Jue & Zhai, Ge & Razzaq, Asif, 2022. "Influence of fiscal decentralization and renewable energy investment on ecological sustainability in EU: What is the moderating role of institutional governance?," Renewable Energy, Elsevier, vol. 200(C), pages 1265-1274.
    14. Doğan, Buhari & Ghosh, Sudeshna & Hoang, Dung Phuong & Chu, Lan Khanh, 2022. "Are economic complexity and eco-innovation mutually exclusive to control energy demand and environmental quality in E7 and G7 countries?," Technology in Society, Elsevier, vol. 68(C).
    15. Manzoor Ahmad & Zeeshan Khan & Zia Ur Rahman & Shoukat Iqbal Khattak & Zia Ullah Khan, 2021. "Can innovation shocks determine CO2 emissions (CO2e) in the OECD economies? A new perspective," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(1), pages 89-109, January.
    16. Anwar, Sajid & Cooray, Arusha, 2012. "Financial development, political rights, civil liberties and economic growth: Evidence from South Asia," Economic Modelling, Elsevier, vol. 29(3), pages 974-981.
    17. Ahakwa, Isaac, 2024. "Towards land degradation neutrality: Does green energy and green human capital matter?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 197(C).
    18. Ali, Kishwar & Jianguo, Du & Kirikkaleli, Dervis, 2022. "Modeling the natural resources and financial inclusion on ecological footprint: The role of economic governance institutions. Evidence from ECOWAS economies," Resources Policy, Elsevier, vol. 79(C).
    19. Ren, Haixia & Xian, Zhe & Zhu, Baorong & Lin, Haiying, 2025. "Fiscal decentralization and regional Innovation: Dual mechanisms of human capital mediation and financial development moderation," International Review of Economics & Finance, Elsevier, vol. 102(C).
    20. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    21. Cunyi Yang & Conghao Zhu & Khaldoon Albitar, 2024. "ESG ratings and green innovation: A U‐shaped journey towards sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4108-4129, July.
    22. Ahakwa, Isaac & Tackie, Evelyn Agba & Tackie, Faustina Korkor & Mangudhla, Tinashe & Baig, Jibal & Islam, Sartaj ul & Sarpong, Francis Atta, 2024. "Greening the path to carbon neutrality in the post-COP26 era: Embracing green energy, green innovation, and green human capital," Innovation and Green Development, Elsevier, vol. 3(3).
    23. Gu, Xiaoya & Baig, Imran Ali & Shoaib, Muhammad & Zhang, Shuo, 2024. "Examining the natural resources-ecological degradation nexus: The role of energy innovation and human capital in BRICST nations," Resources Policy, Elsevier, vol. 90(C).
    24. Guo, Jianan & Islam, Muhammad Azizul & Jain, Ameeta & van Staden, Chris J., 2022. "Civil liberties and social and environmental information transparency: A global investigation of financial institutions," The British Accounting Review, Elsevier, vol. 54(1).
    25. Balsalobre-Lorente, Daniel & Abbas, Jaffar & He, Chang & Pilař, Ladislav & Shah, Syed Ale Raza, 2023. "Tourism, urbanization and natural resources rents matter for environmental sustainability: The leading role of AI and ICT on sustainable development goals in the digital era," Resources Policy, Elsevier, vol. 82(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chu, Lan Khanh, 2024. "Towards achieving energy transition goal: How do green financial policy, environmental tax, economic complexity, and globalization matter?," Renewable Energy, Elsevier, vol. 222(C).
    2. Payne, James E. & Truong, Huong Hoang Diep & Chu, Lan Khanh & Doğan, Buhari & Ghosh, Sudeshna, 2023. "The effect of economic complexity and energy security on measures of energy efficiency: Evidence from panel quantile analysis," Energy Policy, Elsevier, vol. 177(C).
    3. Doğan, Buhari & Ghosh, Sudeshna & Shahzadi, Irum & Balsalobre-Lorente, Daniel & Nguyen, Canh Phuc, 2022. "The relevance of economic complexity and economic globalization as determinants of energy demand for different stages of development," Renewable Energy, Elsevier, vol. 190(C), pages 371-384.
    4. Muhammad Zahid Rafique & Nicolas Schneider & Umer Shahzad & Malin Song, 2022. "High‐tech industries, financial expansion, and low‐carbon energy deployment along the Belt and Road Initiative," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1779-1795, December.
    5. Hoang, Dung Phuong & Chu, Lan Khanh & To, Thanh Trung & Le, Ha Thanh, 2024. "How diversification in energy and economic sectors influences environmental quality: International evidence," Energy Policy, Elsevier, vol. 195(C).
    6. Liu, Hui & Chen, Donglin, 2024. "Asymmetrical impact of natural resources and the digital economy on green growth in the top five Asian knowledge-based economies," Resources Policy, Elsevier, vol. 88(C).
    7. Huang, Chaoqun & Liu, Weibai & Iqbal, Wasim & Shah, Syed Ale Raza, 2024. "Does digital governance matter for environmental sustainability? The key challenges and opportunities under the prism of natural resource management," Resources Policy, Elsevier, vol. 91(C).
    8. Lin, Keliang & Ghosh, Sudeshna & Abbas, Shujaat & Shahbaz, Muhammad & Ferraz, Diogo & Doğan, Buhari, 2024. "Heterogenous impact of energy security and environmental regulations on energy transition: Exploring the disparity between high-income and middle-income countries," Renewable Energy, Elsevier, vol. 237(PB).
    9. Dao, Ngoc Bich & Truong, Huong Hoang Diep & Shahbaz, Muhammad & Chu, Lan Khanh, 2024. "The impacts of natural resources rents diversification, uncertainty, and environmental technologies on ecological sustainability: Empirical evidence from OECD countries," Resources Policy, Elsevier, vol. 91(C).
    10. Hoang, Dung Phuong & Chu, Lan Khanh & To, Thanh Trung & Le, Ha Thanh, 2025. "The interaction of energy diversification policy and geopolitical uncertainty in sustaining the environment: International evidence," Energy Policy, Elsevier, vol. 200(C).
    11. Naima Chrid & Sami Saafi & Mohamed Chakroun, 2021. "Export Upgrading and Economic Growth: a Panel Cointegration and Causality Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 811-841, June.
    12. Dierk Herzer, 2024. "A panel data analysis of the long-run effect of environmental taxes on R&D expenditures at the macro-level," Economics Bulletin, AccessEcon, vol. 44(3), pages 1169-1180.
    13. Aladejare, Samson Adeniyi, 2022. "Natural resource rents, globalisation and environmental degradation: New insight from 5 richest African economies," Resources Policy, Elsevier, vol. 78(C).
    14. Murshed, Muntasir & Saboori, Behnaz & Madaleno, Mara & Wang, Hong & Doğan, Buhari, 2022. "Exploring the nexuses between nuclear energy, renewable energy, and carbon dioxide emissions: The role of economic complexity in the G7 countries," Renewable Energy, Elsevier, vol. 190(C), pages 664-674.
    15. Li, Menghan & Zhang, Kaiyue & Alamri, Ahmad Mohammed & Ageli, Mohammed Moosa & Khan, Numan, 2023. "Resource curse hypothesis and sustainable development: Evaluating the role of renewable energy and R&D," Resources Policy, Elsevier, vol. 81(C).
    16. Chishti, Muhammad Zubair & Sinha, Avik, 2022. "Do the shocks in technological and financial innovation influence the environmental quality? Evidence from BRICS economies," Technology in Society, Elsevier, vol. 68(C).
    17. Guo, Xiuping & Meng, Xianglei & Luan, Qingfeng & Wang, Yanhua, 2023. "Trade openness, globalization, and natural resources management: The moderating role of economic complexity in newly industrialized countries," Resources Policy, Elsevier, vol. 85(PA).
    18. Li, Xuelin & Yang, Lin, 2023. "Natural resources, remittances and carbon emissions: A Dutch Disease perspective with remittances for South Asia," Resources Policy, Elsevier, vol. 85(PB).
    19. Gao, Chunjiao & Chen, Hongxi, 2023. "Electricity from renewable energy resources: Sustainable energy transition and emissions for developed economies," Utilities Policy, Elsevier, vol. 82(C).
    20. Gina Cristina Dimian & Mihaela Maftei & Josef Jablonský & Erika Marin & Stelian Mircea Olaru, 2026. "The Influence of Digitalization on Greenhouse Gas Emissions in European Union. The Analysis of Mediating Effect of Renewable Energy Consumption," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(1), pages 1888-1928, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:84:y:2026:i:c:s0160791x25003240. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.