Scopes and Limits of Innovations for Sustainability in Developing Economies: A Case of Steel Industry in Iran

Sustainable development, as an increasingly important topic, ensures that development meets needs of the present while being considerate of the ability of future generations to meet their own needs. There are several concerns and issues that need to be dealt with when it comes to a sustainable development, and the concept of innovation for sustainability is therefore becoming a crucial element in addressing today’s challenges toward such a development. Innovation for sustainability is any attempt to develop something new, which improves performance with respect to environmental, economic and social pillars of sustainable development. In this regard, innovation is prerequisite to sustainability not only for the developed world but also for developing countries. This study elaborates on scopes and limits of innovation for sustainability in emerging economies as a case study in Iranian steel industry. Iran is a developing country, with rich natural resources, and a complicated economy with its specific potentials as well as problems such as the imposed sanctions, hence requiring innovativeness and novelty toward a sustainable development. From the theoretical point of view, this study elaborates on fundamentals and obstacles of innovation and ecoinnovation, sustainability in general and in the developing world, steel industry and Iranian steel industry in particular. From the empirical perspective, the study tests five hypotheses – inspired from the theoretical part of the study as well as Iran’s economic situation – based on interviews with six managers in Iran’s steel industry. The findings indicate that currently the triple pillars of sustainability in the Iranian steel industry are not considered as a holistic approach and are not mutually reinforcing. The already implemented innovations for sustainability in the Iranian steel industry have been technological innovations and mostly in state-run factories because they receive more support from the government. Organizational modifications and government’s strategic planning are required to further smooth the movement of the Iranian steel industry in the first place and Iran’s economy towards sustainability at a larger scale