Determinants of open innovation in United State of America: New evidence from ARDL method

Abstract

This study examines the dynamic relationship between Gross Domestic Product (GDP), Foreign Direct Investment (FDI), renewable energy consumption, trade openness, and open innovation in the United States using the Autoregressive Distributed Lag (ARDL) methodology. The analysis covers annual data from 1990 to 2023 to explore short- and long-term relationships between these variables. The findings reveal that renewable energy consumption and trade openness significantly contribute to economic growth in the short term. At the same time, open innovation and FDI exhibit a more substantial long-run impact. The results provide vital insights for policymakers balancing economic growth with sustainable development. Based on these findings, we recommend tailored policies that enhance trade, promote FDI, and foster innovation while emphasizing the transition to renewable energy. These findings provide valuable implications for policymakers aiming to achieve sustainable economic growth and innovation-driven development in the U.S. The study highlights the need for policies that incentivize foreign direct investment in renewable energy sectors, promote trade agreements prioritizing the adoption of green technologies, and foster open innovation ecosystems to enhance sustainable economic growth.