Is digitalisation in the economy a source of innovative performance?

Purpose This study aims to examine the relationship between digitalisation in the economy and innovative performance in the context of the Sustainable Development Goals (SDGs) of Oman Vision 2040. Design/methodology/approach Monthly time series data from 2010 to 2022 were analysed using nonlinear estimators, i.e. nonlinear autoregressive distributed lag (NARDL). These estimators were determined to be the ideal analysis methods based on pre-tests and diagnostic tests. Findings This study’s main conclusions concerned the significant positive short- and long-run relationship between proxies of digitalisation in the economy and innovative performance. The Toda and Yamamoto causality test results provided evidence of positive causality because digitalisation in the economy caused changes in innovative performance. Originality/value The study findings revealed a promotion of Oman’s technological capabilities and readiness to adopt frontier technologies and foster a dynamic service-oriented ICT sector to drive technological advancements. Additionally, this study used an NARDL model to help capture real complexities where increases and decreases in a variable do not always have equal and opposite effects. Finally, this study aligned with SDG 8 and SDG 9 and the digital policy of Oman based on Oman Vision 2040.