Sustainable Technology in High-Income Economies: The Role of Innovation

Abstract

The aim of this article is to examine the effects of innovation on the availability of cutting-edge technologies while controlling education, public funds and life expectancy in high-income countries from 2008 to 2018. In this study, Westerlund cointegration, fully modified ordinary least squares and dynamic ordinary least squares tests were applied. The research results indicate that: (i) there is a cointegrating link between the availability of the latest technologies and innovation, education, public funding and life expectancy; (ii) innovation increases the availability of cutting-edge technologies in high-income economies, whereas education, public funds and life expectancy contribute to sustainable technological availability; (iii) innovation, education, public funding and life expectancy result in the availability of cutting-edge technologies. The results are important in showing why policymakers in high-income economies should foster innovation capacity to sustain technological development.