DYNAMICS OF INTELLECTUAL CAPITAL TOWARDS GREEN INNOVATION STRATEGY IN INDONESIA-MALAYSIA-THAILAND GROWTH TRIANGLE (IMT-GT)

This study investigates the degree of intellectual capital needed to lower CO2 emissions in the atmosphere and how it affects the GDP of companies in Indonesia, Malaysia, and Thailand. This study used secondary data from Worldbank and globalcarbonatlas from 1998 to 2022. The data were the level of industrialization and CO2 emission in the three countries that form a growth triangle in the collaboration of Indonesia, Malaysia, and Thailand. The data were analyzed using the Hansen threshold model to Assesses intellectual capital and CO2 emission. Intellectual Capital (IC) such as knowledge, expertise, and innovation, plays a key role in reducing negative environmental impacts. When a company or country has an effective green innovation strategy, IC can help mitigate the negative influence of GDP and the level of Industrialization on CO2 emissions. Increasing human capital encourages the adoption of environmentally friendly technologies and sustainable practices. Innovations emerging from ICs can also lead to more efficient energy use and reduced waste. This study is limited to the period from 1998 to 2022 and focuses on Indonesia, Malaysia, and Thailand. The observed variables include Intellectual Capital (IC), CO2 emissions, GDP, and the level of industrialization, using dynamic threshold panel data. While valuable, this focus means findings might not be generalizable to other regions. Future research should extend the period, include more countries, and break down Intellectual Capital into its components for a more detailed understanding. The differences in Intellectual Capital threshold values among Indonesia, Malaysia, and Thailand affect these countries' capacities to mitigate the impact of GDP growth and industrialization on CO2 emissions. This study finds that increasing intellectual capital in these countries is crucial for reducing carbon emissions.