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

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.