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March 10, 2026Sustainable Development3 citations

Unlocking the Potential of the Digital Economy for Sustainable Development: Roles of Human Capital, R&D, and Green Innovation

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AOAnis OmriMKMontassar Kahia

Key Points

  • The aim is to explore how the digital economy promotes sustainable development in Saudi Arabia, focusing on green innovation and R&D.
  • Analyzed the relationship between digitalization and sustainable development using an aggregate index and disaggregated measures.
  • Evaluated the roles of human capital, research and development, and green technological innovations in this context.
  • Examined the environmental impacts of digitalization and the interaction with green innovations.
  • Digitalization significantly enhances economic and social development in Saudi Arabia.
  • Environmental degradation is noted due to some aspects of digitalization.
  • Green technological innovation positively interacts with the digital economy, improving sustainability.
  • R&D investment can stimulate economic growth, but its environmental benefits depend on surpassing a critical investment threshold.

Abstract

ABSTRACT As part of its Vision 2030 initiative, Saudi Arabia has adopted digital transformation as a strategic pillar for economic diversification and sustainable growth. Substantial investments in digital infrastructure, R below this threshold, R&D can hinder environmental sustainability, underscoring the importance of targeted investments that prioritize green technologies. Human capital accumulation also fortifies the digital economy's potential to promote balanced progress. Overall, the findings underscore the need for policies that nurture green innovation, sustain R&D expenditure, and elevate human capital to maximize the digital economy's contribution to sustainable development. By fostering synergy between digitalization and eco‐friendly technological advancements, Saudi Arabia can realize Vision 2030's goals of inclusive, enduring prosperity.

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Cite This Study

Omri et al. (2026) studied this question.

synapsesocial.com/papers/69af956970916d39fea4cf5dhttps://doi.org/10.1002/sd.70876
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