Technological innovation and digitalization in Asian countries’ economic development

Purpose This study uses a Panel Vector Autoregression (PVAR) model to investigate how the level and use of advanced technologies in the economy affect the digitalization of Asian economies. This study aims to examine the relationship between investment in technology and digital infrastructure and the level of digitalization in Asian countries. The results provide further empirical evidence on the level of economic digitalization based on technological innovation and investment in technological research in Asian economies. Among many interesting findings, it shows a positive impact of research and development (R&D) spending on high technology applied to economic activities. The results also contribute to the basis for building digital economy strategies for Asian countries. Design/methodology/approach This study uses a quantitative PVAR model developed to study how the level and use of innovative technologies in the economy affect the digitalization of Asian economies. Findings This demonstrates that there is a connection between the two. The huge disparities in economic digitalization that exist between Asian nations are a reflection of the diverse technological capabilities and investment agendas that prevail in each of these countries. For the purpose of enhancing the digital performance of the nation, it is of the utmost importance to make investments in the infrastructure that supports innovation and technology. Through the utilization of the PVAR technique, it is feasible to correctly portray the dynamic interplay that exists between the progression of technology and the applications of digital technology. Practical implications It is possible that policymakers in the Asia-Pacific area will use the findings as a useful guide when they are developing or revising strategies for digital transformation. Because of the tight connection that exists between innovation and digitalization, governments should be encouraged to enhance R&D support systems, create digital infrastructure and foster the expansion of high-tech businesses. This is because of the close tie that exists between the two. Taking into account the fact that the countries in the region have radically varying capacities for innovation and digital preparedness, the research also highlights the significance of using strategies that are appropriate for the circumstances. Originality/value This study examines how innovation-related factors affect Asia’s digital economic development using an innovative implementation of the PVAR model. This study broadens knowledge of digitalization routes across several national contexts by integrating dynamic panel analysis with an emphasis on R&D, infrastructure and digital maturity. The results aid in bridging the gap between emerging market economic transformation initiatives and technology policy.