Abstract
What is the real meaning of sustainable innovation? How is sustainable innovation different from other forms of innovation? How does sustainable innovation contribute to societal development? How can we measure the sustainable innovation of a country-which indicators and which synthesis methods should we use? In this paper we try to answer these previous questions. Starting from the concept of sustainable innovation, as it has been extensively discussed in recent years in a range of disciplines from economics to engineering and sociology, the paper focuses on the basic criteria (such as indicators and statistical models) required to evaluate the sustainable innovation at the regional level, choosing Italy as a case study. From the elementary indicators of innovation, on one hand, and sustainability, on other hand, a composite indicator of sustainable innovation has been computed. The statistical model used to compute this composite indicator has been a Higher-Order Partial Least Squares Path model. The results obtained applying this model to the Italian scenario are discussed, the ranking of the different Italian regions, and the impact of the composite indicator sustainable innovation on economic results of each region are discussed.