Solutions for Unleashing Business Innovations: The Role of SDG-Aligned Strategies

Abstract

Innovation in manufacturing and non-manufacturing businesses is crucial for industrial competition, sustainability, and economic growth. Past research has examined innovation drivers and barriers, primarily focusing on business characteristics. However, strategic actions that align with Sustainable Development Goals (SDGs) like commitment to responsible production (SDG 12) and the promotion of a gender-diverse leadership team (SDG 5.5) have been largely underexplored. This study investigates how such SDG-aligned strategies impact a firm's ability to innovate in various dimensions: adopting new product lines, introducing novel products to the entire market (pioneer firms), improving processes, and investing in research and development (R&D). Analysis based on over 60 thousand firm-level observations across 130+ countries suggests that: (1) businesses with an international quality and/or environmental certification have a higher probability of investing in R&D and introducing new product within the business, and (2) female-owned businesses with a male manager have a higher probability of innovating new processes.

Department(s)

Economics

Keywords and Phrases

development; gender; Innovation; international standards; World Bank Enterprise Survey

International Standard Serial Number (ISSN)

1466-4283; 0003-6846

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2025 Taylor and Francis Group; Routledge, All rights reserved.

Publication Date

01 Jan 2025

Link to Full Text

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