Author:

Natalya G. Viktorova Peter the Great St. Petersburg Polytechnic University, Saint Petersburg, Russia

Lingli Lyu Peter the Great St. Petersburg Polytechnic University, Saint Petersburg, Russia

Diankai Wang Zhejiang International Studies University, Hangzhou, China

Abstract:

Despite the widespread recognition of innovation as a key driver of economic growth, its impact on the multidimensional goals of sustainable development, particularly within state-led innovation systems, remains underexplored. In the context of China’s innovation-driven development strategy and its commitment to the UN 2030 Agenda, understanding how national innovation capability simultaneously influences environmental quality, social equity, and economic growth has become a theoretical and practical imperative. The study aims to assess the impact of the national innovation capability on China’s sustainable development from 2014 to 2024. Drawing on the theory of national innovation systems and the concept of sustainable development, and using the entropy method and OLS regression the study analyses the data from official Chinese statistical yearbooks. Two composite indices are constructed: the national innovation capability index and the sustainable development index (with economic, social, and environmental subindices). The results show that the national innovation capability significantly contributes to the sustainable development, with the strongest impact on the environment, followed by social progress and economic growth. These findings remain robust across various model specifications and confirm the effectiveness of China’s innovation development strategy in advancing the sustainable development goals.

Keywords: national innovation capability; sustainable development; China; index; entropy method; regression analysis.

For citation: Viktorova N. G., Lyu L., Wang D. (2026). Assessing the impact of innovation capability on China’s sustainable development. Journal of New Economy, vol. 27, no. 2, pp. 27–49. DOI: 10.29141/2658-5081-2026-27-2-2. EDN: SUFATL.

Article info: received December 28, 2025; received in revised form March 27, 2026; accepted April 3, 2026