The Relationship Between Innovation Performance and Sustainable Development Goals: A Global Canonical Correlation Analysis

Articles in Press

Document Type : Research Paper

Authors

1 Department of Production and Operations Management, Faculty of Industrial Management and Technology, College of Management, University of Tehran, Tehran, Iran.

2 Department of Industrial Management, Faculty of Industrial Management and Technology, College of Management, University of Tehran, Tehran, Iran.

10.22059/ier.2026.409267.1008382

Abstract

This study examines the relationship between innovation performance and progress toward Sustainable Development Goals (SDGs) across 132 countries. Using data from the Global Innovation Index (GII 2024) and the Sustainable Development Report (SDR 2024), Canonical Correlation Analysis (CCA) was applied to explore multidimensional links between seven innovation indicators and seventeen sustainability indicators. Results indicate a strong interdependence: sustainability explains 79.56% of innovation variance, while innovation explains 48.25% of sustainability variance. SDGs 9 (Industry, Innovation, and Infrastructure), 16 (Peace, Justice, and Strong Institutions), and 3 (Good Health and Well-being) exhibit the highest positive correlations, whereas SDG 12 (Responsible Consumption and Production) shows a negative correlation. Among innovation indicators, Human Capital and Research (HCR) and Infrastructure have the strongest impact. The findings of this study provide a roadmap for policymakers, suggesting that aligning national innovation strategies with sustainability priorities is crucial for fostering innovation-driven growth and achieving the SDGs. This alignment will help guide countries toward more sustainable, long-term development through innovation. Overall, the results underscore the importance of aligning national innovation strategies with sustainability priorities to promote innovation-driven growth and balanced progress toward sustainable development.

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Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 25 April 2026

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