Digital Transformation, Innovation and Sustainable Growth

Abstract

The current era is considered as the most dynamic and competitive era in term of technology and innovation. More desperation can be seen by countries to modernize their arsenal of technologies and innovation. As these two dimensions have been proved as the corner stone of economic heights for the regions and countries. Therefore, many countries, especially richer countries are more proven towards technological transformation and innovation to achieve competitive advantage. This research investigates the impact Digital Transformation on Sustainable Growth and to examine the mediating role of Innovation. This study collected annual data from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE. This study collects annual data from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE. We used data from 2008-2021. Following quantitative research design, different statistical techniques i.e. Quantile Regression, GMM and Dynamic Fixed effect models were applied. The results of our analysis showed that a long-run and short run association exists between the variables and further evidenced that digital transformation and innovation positively affect the sustainable growth of the Gulf countries. The findings have certain meaningful contributions to the policy makers.