Driving Green Innovation in an Emerging Economy: The Moderating Role of Policy Support on the ESG Innovation Link in Thailand

Tharinee  Suesatsakul; Junping Yang

ผู้แต่ง

Tharinee Suesatsakul Zhejiang Sci-Tech University, School of Economics and Management, China.
Junping Yang Zhejiang Sci-Tech University, School of Economics and Management, China.

คำสำคัญ:

ESG, Policy Support, Green Innovation, Sustainable Development, Thailand

บทคัดย่อ

This paper presents a conceptual and analytical review of the factors driving green innovation in emerging economies, with Thailand as the main context of analysis. Rather than relying on primary empirical data, the study synthesizes academic literature, policy documents, government reports, and institutional data to examine the relationship between Environmental, Social, and Governance (ESG) practices, policy support, and green technological innovation. The paper adopts a qualitative documentary analysis approach to identify how government policies can strengthen the link between ESG practices and innovation outcomes in the business sector. The analysis focuses on the moderating role of policy support. In Thailand, policy instruments such as green bond market development, tax incentives, sustainability-related regulations, and greenhouse gas reduction targets are discussed as mechanisms that encourage firms to invest in environmentally friendly technologies. These policies may help reduce financial barriers, increase regulatory clarity, and create institutional incentives for businesses to integrate ESG principles into corporate strategies. The paper argues that ESG practices alone may not automatically generate green technological innovation, especially in emerging economies where firms often face challenges such as limited access to green finance, uncertain policy enforcement, high initial investment costs, and insufficient technical capacity. In this context, supportive public policy can enhance the effectiveness of ESG practices by lowering investment risks, providing financial incentives, setting clearer environmental standards, and encouraging firms to align sustainability goals with innovation strategies.

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