Encouraging the innovation as a factor of economic sustainability: Evidence from Vietnam

Abstract

Subject. Currently, the relationship of innovation and economic sustainability has become an important aspect to consider. Analyzing the importance of encouraging the innovation for the economic growth of the Social Republic of Vietnam, we can determine the future of the economic development in many developing countries. Objectives. We substantiate the relationship of innovation and economic sustainability and outline our recommendations for encouraging the innovation and improving the innovative system of Vietnam. Methods. As part of the study, we mainly analyze proceedings on the role of innovation in the economic sustainability, materials of international organizations, and official papers of the Vietnamese government. Results. Having analyzed Global Innovation Index reports from 2013 through 2020, we found achievements and weaknesses of innovations in Vietnam. We determined the main challenges of Vietnam’s innovation system through the comparative analysis of the innovation indices of Vietnam, Singapore, Malaysia and Thailand. The article substantiates priorities for improving the national innovation system of Vietnam, and raising the importance of innovation for the economic sustainability. Conclusions and Relevance. We suggest what should be done to improve innovation in Vietnam. The findings can be used to set up a mechanism for encouraging innovation, which should become the principal driver of the sustainable economic development in Vietnam and other emerging economies.