Author: Dr. Gariba and colleagues.
Public sector digitalization and technological innovation have emerged as essential drivers of sustainable development in the modern economy. Within the European Union (EU), these two forces are transforming how governments deliver services, manage resources, and pursue sustainability goals. As digital transformation accelerates, it is vital for EU economies to integrate public digitalization and innovation strategies to achieve long-term economic, social, and environmental sustainability. Despite their growing relevance, the interaction between digitalization and technological innovation, and their combined influence on sustainability, remains insufficiently explored.
Drawing from the Triple Bottom Line (TBL) theory, this study develops and empirically tests a model that examines the mediating role of technological innovation in the relationship between public digitalization and sustainability. The TBL framework, which emphasizes economic prosperity, social well-being, and environmental protection, provides a comprehensive lens to understand how public digital transformation and innovation can jointly contribute to sustainable development. By exploring these interdependencies, the study aims to offer evidence-based insights for improving public sector efficiency and sustainability across EU member states.
The research utilizes a panel dataset covering EU countries from 2018 to 2023 and applies Structural Equation Modeling (SEM) to assess both direct and indirect relationships between public digitalization, technological innovation, and sustainability outcomes. This methodological approach allows for a robust evaluation of how digital initiatives in the public sector foster innovation and how these innovations, in turn, contribute to sustainable progress. The dataset captures variations across EU member states, providing a comparative perspective on digital governance and innovation performance.
The findings reveal that public digitalization significantly and positively impacts technological innovation within the EU. Digital tools enhance knowledge sharing, streamline processes, and create opportunities for innovative solutions to societal and environmental challenges. Furthermore, technological innovation shows a strong positive effect on sustainability, reinforcing its role as a key enabler of green growth, social inclusion, and economic efficiency. The study also confirms that technological innovation mediates the relationship between public digitalization and sustainability, emphasizing its central role in translating digital initiatives into tangible sustainable outcomes.
These results carry meaningful implications for EU policymakers and practitioners. To strengthen the synergy between public digitalization and sustainability, governments should prioritize policies that encourage research and development, support digital infrastructure, and promote collaborative innovation ecosystems. Investing in digital skills and innovation-friendly institutions will further accelerate sustainability transitions across EU economies.
In conclusion, this study highlights that technological innovation acts as both a catalyst and a bridge between public digitalization and sustainable development. By fostering innovation through digital governance, EU countries can enhance resilience, reduce environmental impacts, and promote inclusive growth. The integration of digitalization and innovation within public sector strategies is thus essential for achieving the Sustainable Development Goals (SDGs) and advancing Europe’s long-term sustainability agenda.
Read the full article here to explore the detailed findings and their implications for both policymakers and practitioners.