The Impact of Patent-Based Innovations, Electric Vehicle Adoption, and Renewable Energy on Economic Growth: Evidence from Cross-Country Panel Data (2010–2024)

Abstract

The current research examines the relationship among economic growth rate, technological innovation, the use of electric vehicles and energy use based on a panel research of the countries in the study period selected. As a measure of economic development, economic growth, which is expressed as real GDP per capita, is viewed as one of the indicators of development, whereas patents are employed to measure the innovation activities, and the adoption of electric vehicles is viewed as the process of transition to the sustainable mobility. Energy consumption comes to define the significance of energy in facilitating economic activities. In the study, advanced panel econometric techniques are used to explain the dynamic nature and heterogeneity of cross-country data. The first panel unit root tests show that variables are non-stationary in levels but become stationary which corresponds to the inclusion of integrative levels of dynamic modeling (Pesaran, 2015). The Westerlund (2007) panel cointegration test which is based on error correction is used in order to test the possible relationship between these variables at the long-run equilibrium. The findings imply that there are heterogeneous long-run relationships among the countries; thus, the CCEMG estimator is used to represent the cross-sectional dependence and national specific dynamics. The use of sophisticated panel econometric models such as the Pooled Mean Group (PMG) and Common Correlated Effects Mean Group (CCEMG) estimator were applied to fit the long-run relations, short run dynamics, cross-sectional dependence, and country relative heterogeneity. The techniques improve reliability and soundness of the empirical results.