Digital Innovation and Inclusive Growth: Pathways to Achieving Sustainable Development Goals

Abstract

This paper aims to systematically examine the pathways through which digital innovation can advance inclusive growth, specifically in alignment with the United Nations Sustainable Development Goals (SDGs). It synthesizes empirical evidence from various emerging economies to identify effective digital strategies and critical contextual factors. The study employs a systematic literature review methodology, analyzing a selection of peer-reviewed articles and empirical studies published within the last five years. A thematic coding approach was used to categorize insights related to barriers, governance, and the socio-economic impact of digital technologies on inclusive growth. The review reveals that digital financial inclusion positively correlates with enhanced economic participation among marginalized groups. The findings also underscore the pivotal role of supportive government policy and regulatory frameworks in fostering a stable environment for digital innovation. A significant barrier identified is the persistent digital divide, particularly regarding digital literacy, which limits the effective utilization of new technologies. Innovative applications in healthcare and education, accelerated by the COVID-19 pandemic, also emerged as new pathways for inclusive growth. The findings provide essential insights for policymakers and practitioners, emphasizing the need for comprehensive strategies that combine digital access with education and proactive regulatory support to ensure equitable economic growth. This paper offers a timely and focused synthesis of the complex relationship between digital innovation and inclusive growth, providing a nuanced understanding of how technology can catalyze sustainable development in emerging economies.