Innovational duality and sustainable development: finding optima amidst socio-ecological policy trade-off in post-COVID-19 era

Abstract

Purpose – This study aims to analyze the socio-ecological policy trade-off caused by technological innovations in the post-COVID-19 era. The study outcomes are utilized to design a comprehensive policy framework for attaining sustainable development goals (SDGs). Design/methodology/approach – Study is done for 100 countries over 1991–2019. Second-generation estimation method is used. Innovation is measured by total factor productivity, environmental quality is measured by carbon dioxide (CO2) emissions and social dimension is captured by unemployment. Findings – Innovation–CO2 emissions association is found to be inverted U-shaped and innovation– unemployment association is found to be U-shaped. Research limitations/implications – The study outcomes show the conflicting impact of technological innovation leading to policy trade-off. This dual impact of innovation is considered during policy recommendation. Practical implications – The policy framework recommended in the study shows a way to address the objectives of SDG 8, 9 and 13 during post-COVID-19 period. Social implications – Policy recommendations in the study show a way to internalize the negative social externality exerted by innovation. Originality/value – This study contributes to the literature by considering the policy trade-off caused by innovation and recommending an SDG-oriented policy framework for the post-COVID-19 era.