Sustainability of goals to growth in Asian Pacific: the role of innovation and e-government services

The Asia-Pacific region accounts for one-third of the global population and economic growth, while being at the forefront of the climate crisis. Therefore, this study examines the relationship between Sustainable Development Goals (SDGs), national innovation capacity (GII), e-government (EGov), and private sector (PSG) contribution across Asia-Pacific economies. Using panel data from 2007 to 2023, this study identifies a strong linear relationship between the composite SDG index and the private sector share in GDP. There is also a strong connection between the GII and PSG contributions. Mediation analysis demonstrates that GII partially mediates the link between SDG advances and the PSG share of GDP, while the quality of EGov services significantly moderates the relationship. Similarly, goal-level analysis revealed that SDGs 1, 5, 10, 14, 15, and 16 remain the primary factors advancing PSG economic contributions, whereas SDGs 3, 9, and 12 are significant contributors to innovation in the economy. These results are essential for considering sustainability and innovation as mutually constructive concepts and for developing relevant policies to promote inclusive growth.