Abstract
Technological innovation has generated much interest among scholars, practitioners, and policymakers as a critical instrument for achieving sustainable development. Although the relationship between technological innovation and sustainable development has been extensively discussed in the academic and policy circles, little studies have empirically examined the simultaneous impact of technological innovation on the three pillars of sustainable development. To fill this gap, the present study examines the ability of technological innovation to simultaneously promote economic progress and advance social and environmental conditions in the case of 75 low-, middle-, and high-income countries by demonstrating how this impact differs across the stages of economic development. From both long-run estimates and causality analysis, our findings reveal that technological innovation contributes simultaneously to the three pillars of sustainable development only in the case of rich countries; however, it only affects the economic and environmental dimensions in the middle-income countries, and no impact is found in the case of low-income countries. Future research directions, policy and managerial implications are also discussed.
•Impact of technological innovation (TI) on sustainable development (SD) is examined.•We find that TI contributes to the three pillars of SD only in the rich countries.•TI only affects the economic and environmental pillars in middle-income countries.•No impact is found in the case of low-income countries.•Impact of TI on SD differs across the stages of economic development.