Sustainable Entrepreneurship and Innovation: A Catalyst for the Transition Towards a Green and Blue Economy

Abstract

This study investigates how sustainable entrepreneurship and innovation act as catalysts for the transition towards a green and blue economy by comparing 30 developed and developing countries. Using Principal Component Analysis (PCA), five strategic indicators are analyzed: Venture Capital investment (including deal-based global ranking), Global Innovation Index rank, Ocean Health Index, Corruption Perceptions Index, and Green Growth Index. Together, the first three principal components explain over 82% of the variance, revealing distinct structural patterns. Developed economies such as Sweden, Germany, and Denmark combine strong innovation performance, institutional quality, and environmental resilience, while emerging economies like Morocco, Kenya, and South Africa face governance and innovation gaps but demonstrate relative potential in green growth. The United States stands out as an outlier with exceptionally high venture capital availability, whereas Singapore shows solid innovation and governance accompanied by fragile ocean health, and Saudi Arabia exhibits persistent weaknesses in green growth. These findings provide actionable insights for multiple stakeholders: policymakers in developing countries should prioritize institutional reforms and targeted financing to unlock entrepreneurial ecosystems; investors can identify economies where innovation-driven ventures align with sustainability opportunities; and entrepreneurs can leverage green and blue market niches in contexts where environmental needs are urgent. By mapping country clusters and their structural trade-offs, this research offers a decision-making framework that helps governments, investors, and innovators design tailored strategies to accelerate sustainable growth and resilience in the global transition towards green and blue economies.