An economic framework to support responsible innovation adoption by enterprises in emerging economies

Responsible Innovation (RI) has gained significant attention as a framework to align innovation activities within enterprises with societal values, sustainability, and ethical considerations. However, its adoption by enterprises in emerging economies is hindered by the dominance of profit-driven decision-making models. According to previous studies, enterprises in these economies rely almost exclusively on the profit criterion, often neglecting broader societal impacts. This study addresses the inherent tension between profitability and societal welfare by proposing an economics-based signaling approach to RI. Drawing on signaling theory, the framework demonstrates how RI adoption can shift from being a moral obligation to an economically rational choice, thus incentivizing profit-oriented enterprises. By introducing a responsible innovation signal, the paper explores how information asymmetry in innovation markets can be reduced, enabling enterprises utilizing responsible practices to differentiate themselves. The findings provide actionable insights for fostering the widespread integration of RI among enterprises in emerging economies, offering new perspectives for policymakers, enterprises, and researchers.