Sustainability and its influence on innovation efficiency

Innovation efficiency plays a key role in ensuring that sustainability efforts are implemented effectively and yield maximum benefits. This study emphasizes the impact of government regulations and environmental resource saving approaches on innovation efficiency. By analyzing data from more than 1196 German companies statistically, this study examines the importance of governmental and legal regulations as well as engagement in environmental activities for green innovation. The findings reveal that companies prioritizing regulations and environmental practices achieve higher innovation output from the same innovation input than other firms, leading to improved innovation efficiency. Companies focusing on sustainability aspects exhibit a higher level of innovation efficiency, enhance their market position and long-term firm performance, and elevate their competitiveness through the efficient development of new and sustainable innovations. Companies embracing these aspects contribute to both their own success and the well-being of the environment