Sustainability through business model innovation and climate finance in developing countries

The sustainability challenge facing developing economies has become a topic of debate in recent decades. This research delves into the impact of green finance and enterprise patents on sustainable development indices in distinct groups of developing nations, specifically in Asia and Europe. By analyzing data from 2000 to 2019, the study unveils a positive correlation between green finance and sustainability. Asian economies experience a 0.32% increase, and European economies a 0.54% increase in sustainability per 1% rise in green finance value. Similarly, enterprise patents contribute positively, with Asian economies witnessing a 0.18% increase and European economies a 0.26% increase per 1% rise in patents. However, challenges such as limited electricity access, exacerbated by electrification, impede sustainability progress. Furthermore, internet access and the poverty ratio negatively affect sustainability. The study recommends targeted policies to enhance sustainability indices, emphasizing incentivizing green investments, strengthening regulatory frameworks, and promoting research and development initiatives in both Asian and European developing economies.