Technological Innovation, Talent and Trade: Determinants of Sustainable Economic Growth in the N-11 Economies

This study examines the role of technological innovation progress in promoting sustainable economic growth across the Next-Eleven (N-11) emerging economies during 1991-2024. Employing advanced panel estimation techniques - Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) - the research investigates the long-run effects of technological innovation (TI), trade openness (TO), foreign direct investment (FDI), and human capital (HC) on GDP growth. The empirical results demonstrate that both technological innovation and trade openness significantly enhance economic performance, confirming their role as central engines of growth. Furthermore, human capital found to have a strong positive influence on economic growth, and its interaction with technological innovation (TI × HC) generating an amplifying effect, highlighting the importance of knowledge-based abilities in translating innovation to meaningful productivity gains. In contrast to this, FDI shows a weak relationship with GDP, which suggesting that foreign investment in shape of external capital flows have a limited impact until and unless in the presence of domestic innovation capacity and skilled human resources. Empirically, these models demonstrate a strong explanatory power (R² = 0.78–0.81), validating the findings. In short, the results indicate that sustainable growth in the next-eleven countries depends on strengthening innovation ecosystems, investing in education, expenditure on research and development, and integrating trade with technological advancement.

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