Role of Innovation in the Energy Sector for Enhancing Export Performance and Economic Growth

Abstract

Innovation in the energy sector plays an important role in enhancing the export performance and economic growth of the country. In this conceptual paper, we make a difference between innovation within the industry from innovation outside the industry, and their impact on the export performance and economic growth of the country. The most essential aspects of conceptualized relationships are that innovations in the energy sector i.e. electricity sector can significantly improve the economic growth of the country and the export performance of manufacturing organizations. The energy consumption theory and neo-classical theory involves in order to explain economic growth in the prospect of innovation. It is identified that by making innovation in the energy sector, it becomes possible for the government to overcome the tariff rates of electricity, which ultimately reduces the production cost of organizations, and enhances the export performance and economic growth of the country.