Do Innovation Systems Support Sustainable Well-Being? Empirical Evidence from Emerging EU Member States

This study investigates whether national innovation systems contribute to sustainable well-being in emerging EU Member States by examining the long-run relationship between innovation performance and a multidimensional Quality of Life Index (QoLI). Using a balanced panel covering 2013–2024 for ten countries, the analysis integrates the Global Innovation Index, economic development dynamics, and demographic pressure to assess whether innovation-led progress translates into broad societal benefits. Panel cointegration tests confirm a stable long-run equilibrium among variables, while FMOLS estimation reveals three key results: (i) While the bivariate Pearson correlation indicates a positive association between innovation capacity and quality of life, the multivariate FMOLS estimation reveals a statistically significant negative long-run effect of innovation performance on QoLI, once economic development and demographic pressures are jointly controlled for. (ii) Economic development contributes positively to sustainable well-being, reinforcing the role of income-driven improvements in living conditions, and (iii) population size exerts a strong negative effect, reflecting demographic stress and unequal access to essential services. The findings indicate an innovation–well-being gap in which technological progress advances faster than the institutional and social mechanisms needed to ensure equitable diffusion. These results underscore the need to reorient innovation strategies toward inclusive growth, social accessibility, and environmental resilience so that innovation systems can effectively support sustainable well-being in emerging European economies.