Measuring the Impact of Innovation Ecosystem and Enabling Environment on Fisheries System Performance

The ecological decline of the fisheries industry diminishes economic returns for fishers, while the pursuit of economic profitability by individual fishers conflicts with the social goals of fishing communities. This study examines the dynamic impact of global competitiveness on the sustainability of the fisheries industry across 27 European countries, considering factors such as fisheries production, supportive environments, innovation ecosystems, market size, human capital, and economic growth from 1990 to 2022. Utilizing the innovative method of moments quantile regression (MMQR) with fixed effects, the study reveals a significant positive relationship between a supportive environment and fisheries sustainability at higher quantiles. Additionally, human capital shows a significant positive effect from the first to the ninth quantiles in EU27 countries. Notably, the positive impact of a supportive environment and human capital on fisheries sustainability is more pronounced in the developed EU14 countries compared to the developing EU13 countries. The study also finds that the innovation ecosystem enhances fisheries sustainability across all quantiles. Conversely, market size and economic growth reduce fisheries sustainability in both EU14 and EU13 countries, supporting the growth hypothesis for fisheries-producing nations. Importantly, the positive effects of the innovation ecosystem, market size, and economic growth on fisheries sustainability are more substantial in the EU13 developing countries than in the EU14 developed countries. These findings offer valuable insights for policymakers to foster competitive markets in both EU14 and EU13 countries through the adoption of efficient and environmentally friendly technologies in the fisheries industry, thereby advancing sustainable development goals.