Innovation and its potential in the context of the ecological component of sustainable development

Abstract

Purpose

This paper seeks to discuss technology transfer – and its role in climate change mitigation – within the United Nations framework of sustainable development. Innovation is broadly considered as a tool to bring about breakthrough results in climate change alleviation. To ensure that innovative technology serves sustainable development, a massive international effort on the part of the regulators is required to create an integrated legislative framework to standardize eco‐innovation policies worldwide. To facilitate a global ecological regulatory framework, it is essential to use universal measurement tools which provide input to the decision‐making process at an international level, and address the mechanism of monitoring progress.

Design/methodology/approach

The concept of eco‐innovation potential is introduced as one of the inputs to the decision‐making process on the global level. A composite index with such constituents as ecological balance (deficit or reserve), innovation, and energy intensity of economy, is built. The concept of innovation credits is introduced.

Findings

The simulation shows that ecological balance can potentially be increased for countries with greater eco‐innovation potential. The innovation credits can be given to countries with the highest eco‐innovation potential to foster eco‐innovation and perform technology transfer.

Originality/value

Earlier research developed focus on innovation as a means to transition to sustainable development and to create climate positive technological regimes applied at a national or industry level. The paper illustrates that the eco‐innovation potential index can be applied globally and can provide key input to the decision‐making process at a global level.

Citation

Bakhtina, V.A. (2011), "Innovation and its potential in the context of the ecological component of sustainable development", Sustainability Accounting, Management and Policy Journal, Vol. 2 No. 2, pp. 248-262. https://doi.org/10.1108/20408021111185402