Decoding Innovation Growth: An Explainable AI Analysis of How Mega Sport Events Transform Financial Landscapes and Sustainability Metrics

This article describes a new approach attempting to understand the interconnection of Mega Sport Events (MSEs) and any nation’s innovation ecosystem, measured by the trajectory of patent applications. Through advanced machine learning models, over two decades (1985-2022) of data from six host countries are analysed to uncover how investment expenditures interact with economic conditions and environmental, social, and governance (ESG) factors. There is a reality that seems to be dualistic: while strategically targeted operational expenditures stimulate innovation capabilities, there is excessive expenditure that stifles the output. Even more interestingly, the demographic structure is found to be a strong driver of innovation, rejecting dominant theorisations regarding the benefits of MSEs. Differentiating the impact of sustainability strategies and social integration policies is important. These conclusions provide vital insights to public management on the controversial spending issues regarding event bidding and resource distribution. This analysis demonstrates the apparent contradiction between the sustainability of investment and the innovation yield, fundamentally changing how countries can leverage the true legacy of sporting events, which encompass economic development.