IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i5p2600-d756990.html
   My bibliography  Save this article

Economic Innovation Caused by Digital Transformation and Impact on Social Systems

Author

Listed:
  • Inhye Yoo

    (The Institute of National Public Policy, Chungnam National University, Daejeon 305764, Korea)

  • Chan-Goo Yi

    (Department of Public Administration, College of Social Science, Chungnam National University, Daejeon 305764, Korea)

Abstract

The purpose of this study is to review studies on innovation and identify factors that affect the acceleration of digital economic innovation. This study also analyzes the impact of economic innovation on social systems. A systematic literature review method was used to analyze the findings of extant studies on digital transformation and economic growth. Results indicate that different drivers trigger economic innovation in different times. Our analyses reveal that digital economic innovation results in changes in the industrial structure and helps productivity improvement and cost reduction in the production sector. Results show that the impact of economic innovation on technology and society spheres interacts with economic innovation. This study contributes to the literature by providing a comprehensive framework of how economic innovation and social systems are connected and how technology, economy, society, and policy sectors coevolve within the enormous framework of social systems.

Suggested Citation

  • Inhye Yoo & Chan-Goo Yi, 2022. "Economic Innovation Caused by Digital Transformation and Impact on Social Systems," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:5:p:2600-:d:756990
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/5/2600/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/5/2600/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Hideki Nakamura & Joseph Zeira, 2024. "Automation and unemployment: help is on the way," Journal of Economic Growth, Springer, vol. 29(2), pages 215-250, June.
    3. Berg, Janine., 2016. "Income security in the on-demand economy : findings and policy lessons from a survey of crowdworkers," ILO Working Papers 994906483402676, International Labour Organization.
    4. David J. Teece, 2008. "Firm organization, industrial structure, and technological innovation," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 11, pages 265-296, World Scientific Publishing Co. Pte. Ltd..
    5. Rosenberg, Nathan, 1976. "On Technological Expectations," Economic Journal, Royal Economic Society, vol. 86(343), pages 523-535, September.
    6. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 339-376.
    7. Mazzola, Erica & Perrone, Giovanni & Kamuriwo, Dzidziso Samuel, 2015. "Network embeddedness and new product development in the biopharmaceutical industry: The moderating role of open innovation flow," International Journal of Production Economics, Elsevier, vol. 160(C), pages 106-119.
    8. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-293, June.
    9. Dalenogare, Lucas Santos & Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro Germán, 2018. "The expected contribution of Industry 4.0 technologies for industrial performance," International Journal of Production Economics, Elsevier, vol. 204(C), pages 383-394.
    10. Frambach, Ruud T. & Schillewaert, Niels, 2002. "Organizational innovation adoption: a multi-level framework of determinants and opportunities for future research," Journal of Business Research, Elsevier, vol. 55(2), pages 163-176, February.
    11. Grossman, Gene M. & Helpman, Elhanan, 1991. "Trade, knowledge spillovers, and growth," European Economic Review, Elsevier, vol. 35(2-3), pages 517-526, April.
    12. Zhiang (John) Lin & Mike W. Peng & Haibin Yang & Sunny Li Sun, 2009. "How do networks and learning drive M&As? An institutional comparison between China and the United States," Strategic Management Journal, Wiley Blackwell, vol. 30(10), pages 1113-1132, October.
    13. Carlota Perez, 2002. "Technological Revolutions and Financial Capital," Books, Edward Elgar Publishing, number 2640.
    14. Sze-Sze Wong & Wai Fong Boh, 2014. "The Contingent Effects of Social Network Sparseness and Centrality on Managerial Innovativeness," Journal of Management Studies, Wiley Blackwell, vol. 51(7), pages 1180-1203, November.
    15. Carlota Perez, 2010. "Technological revolutions and techno-economic paradigms," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 34(1), pages 185-202, January.
    16. Carlsson, Bo, 2004. "The Digital Economy: what is new and what is not?," Structural Change and Economic Dynamics, Elsevier, vol. 15(3), pages 245-264, September.
    17. Fagerberg, Jan & Verspagen, Bart, 2002. "Technology-gaps, innovation-diffusion and transformation: an evolutionary interpretation," Research Policy, Elsevier, vol. 31(8-9), pages 1291-1304, December.
    18. Geels, Frank W., 2004. "From sectoral systems of innovation to socio-technical systems: Insights about dynamics and change from sociology and institutional theory," Research Policy, Elsevier, vol. 33(6-7), pages 897-920, September.
    19. MORIKAWA Masayuki, 2020. "Heterogeneous Relationships between Automation Technologies and Skilled Labor: Evidence from a Firm Survey," Discussion papers 20004, Research Institute of Economy, Trade and Industry (RIETI).
    20. Pavitt, Keith & Robson, Michael & Townsend, Joe, 1987. "The Size Distribution of Innovating Firms in the UK: 1945-1983," Journal of Industrial Economics, Wiley Blackwell, vol. 35(3), pages 297-316, March.
    21. Nambisan, Satish & Wright, Mike & Feldman, Maryann, 2019. "The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    22. Gautam Ahuja & Francisco Polidoro & Will Mitchell, 2009. "Structural homophily or social asymmetry? The formation of alliances by poorly embedded firms," Strategic Management Journal, Wiley Blackwell, vol. 30(9), pages 941-958, September.
    23. Robert E. Litan & Alice M. Rivlin, 2001. "Projecting the Economic Impact of the Internet," American Economic Review, American Economic Association, vol. 91(2), pages 313-317, May.
    24. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    25. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jing-Yan Ma & Lei Shi & Tae-Won Kang, 2022. "The Effect of Digital Transformation on the Pharmaceutical Sustainable Supply Chain Performance: The Mediating Role of Information Sharing and Traceability Using Structural Equation Modeling," Sustainability, MDPI, vol. 15(1), pages 1-21, December.
    2. Gershom Atukunda & Benjamin Musiita & Johnson Atwiine & Aquilionus Atwine & Anthony Moni Olyanga, 2024. "Financial Innovations and Profitability of Commercial Banks in Uganda," Journal of Economics and Behavioral Studies, AMH International, vol. 16(2), pages 32-44.
    3. Xin Du & Hengming Zhang & Yawen Han, 2022. "How Does New Infrastructure Investment Affect Economic Growth Quality? Empirical Evidence from China," Sustainability, MDPI, vol. 14(6), pages 1-30, March.
    4. Xiao Han & Yang Zheng, 2022. "Driving Elements of Enterprise Digital Transformation Based on the Perspective of Dynamic Evolution," Sustainability, MDPI, vol. 14(16), pages 1-19, August.
    5. Muawia Ramadan & Tariq Amer & Bashir Salah & Mohammed Ruzayqat, 2022. "The Impact of Integration of Industry 4.0 and Internal Organizational Forces on Sustaining Competitive Advantages and Achieving Strategic Objectives," Sustainability, MDPI, vol. 14(10), pages 1-20, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mark Knell & Simone Vannuccini, 2022. "Tools and concepts for understanding disruptive technological change after Schumpeter," Jena Economics Research Papers 2022-005, Friedrich-Schiller-University Jena.
    2. G Cameron, 1996. "Innovation and Economic Growth," CEP Discussion Papers dp0277, Centre for Economic Performance, LSE.
    3. Shang, Qingyan & Poon, Jessie P.H. & Yue, Qingtang, 2012. "The role of regional knowledge spillovers on China's innovation," China Economic Review, Elsevier, vol. 23(4), pages 1164-1175.
    4. Rinaldo Evangelista, 2018. "Technology and Economic Development: The Schumpeterian Legacy," Review of Radical Political Economics, Union for Radical Political Economics, vol. 50(1), pages 136-153, March.
    5. Iritié, B. G. Jean-Jacques, 2014. "Enjeux des politiques industrielles basées sur les clusters d'innovation: cas des pôles de compétitivité [Issues of Innovative Clusters-based Industrial Policy: Case of Pole of Competitiveness]," MPRA Paper 54429, University Library of Munich, Germany.
    6. Sumbal Fatima & Bateer Chen & Muhammad Ramzan & Qamar Abbas, 2020. "The Nexus Between Trade Openness and GDP Growth: Analyzing the Role of Human Capital Accumulation," SAGE Open, , vol. 10(4), pages 21582440209, November.
    7. Fulvio Castellacci, 2007. "Evolutionary And New Growth Theories. Are They Converging?," Journal of Economic Surveys, Wiley Blackwell, vol. 21(3), pages 585-627, July.
    8. Ruttan, Vernon W., 1998. "Growth Economics And Development Economics: What Should Development Economists Learn (If Anything) From The New Growth Theory?," Bulletins 12972, University of Minnesota, Economic Development Center.
    9. Feld, Lars P. & Schmidt, Christoph M. & Schnabel, Isabel & Truger, Achim & Wieland, Volker, 2019. "Den Strukturwandel meistern. Jahresgutachten 2019/20 [Dealing with Structural Change. Annual Report 2019/20]," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201920, September.
    10. Sang-Yong Tom Lee & Xiao Jia Guo, 2004. "Information and Communications Technology (ICT) and Spillover: A Panel Analysis," Econometric Society 2004 Far Eastern Meetings 722, Econometric Society.
    11. Juan Ricardo Perilla Jimenez, 2019. "Mainstream and evolutionary views of technology, economic growth and catching up," Journal of Evolutionary Economics, Springer, vol. 29(3), pages 823-852, July.
    12. Alhassan Abdul-Wakeel Karakara & Evans Osabuohien, 2020. "ICT adoption, competition and innovation of informal firms in West Africa: a comparative study of Ghana and Nigeria," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 14(3), pages 397-414, June.
    13. Carine Nourry, 2012. "Dasgupta, D.: Modern growth theory," Journal of Economics, Springer, vol. 105(1), pages 97-100, January.
    14. Andersson, Fredrik N.G. & Edgerton, David L. & Opper, Sonja, 2013. "A Matter of Time: Revisiting Growth Convergence in China," World Development, Elsevier, vol. 45(C), pages 239-251.
    15. Saima Javed & Yu Rong & Hafiz Muhammad Ihsan Zafeer & Samra Maqbool & Babar Nawaz Abbasi, 2024. "Unleashing the potential: a quest to understand and examine the factors enriching research and innovation productivities of South Asian universities," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    16. Shelby D. Hunt, 2012. "Understanding the Drivers of Economic Growth: Grounding Endogenous Economic Growth Models in Resource-Advantage Theory," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 6(4), December.
    17. Asongu, Simplice & Boateng, Agyenim & Akamavi, Raphael, 2016. "Mobile Phone Innovation and Inclusive Human Development: Evidence from Sub-Saharan Africa," MPRA Paper 75046, University Library of Munich, Germany.
    18. De, Supriyo, 2014. "Intangible capital and growth in the ‘new economy’: Implications of a multi-sector endogenous growth model," Structural Change and Economic Dynamics, Elsevier, vol. 28(C), pages 25-42.
    19. Brock, William A. & Xepapadeas, Anastasios & Yannacopoulos, Athanasios N., 2014. "Optimal agglomerations in dynamic economics," Journal of Mathematical Economics, Elsevier, vol. 53(C), pages 1-15.
    20. Quatraro, Francesco, 2008. "Regional Knowledge Base and Productivity Growth: The Evidence of Italian Manufacturing," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200810, University of Turin.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:5:p:2600-:d:756990. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.