Innovative Approaches for a Sustainable Future

Abstract

Research and development (R&D) and its contribution to innovation is critical for sustainable development and Society 5.0. This chapter investigates the intricate relationship between expenditure in R&D and sustainable development in light of socio-environmental issues with a panel of 38 OECD countries spanning 2000-2021. The variables of interest in this study include R&D expenditure as a percentage of gross domestic product (GDP) and economic growth. Real gross domestic product per capita serves as the proxy to measure sustainable economic growth, while social sustainability and environmental sustainability are measured by the social progress index and environmental sustainability index, respectively. The findings of this chapter show that the effect of expenditure in R&D on environmental sustainability is negative, which is influenced by the crowding out effect due to socio-environmental issues. This chapter suggests innovative approaches to sustainable development through a holistic approach incorporating human and social aspects.