Technological innovations and health performance: Effects and transmission channels

This article extends the existing literature on the health impacts of technological innovations by investigating both the direct effects of technological innovations on health outcomes and the indirect effects through economic growth, environmental performance, and renewable energy in the GCC countries. The study employs the three-step approach of Baron and Kenny (1986) to analyze the relationship between technological innovations and health outcomes. To ensure the validity of the analysis, several multiple preliminary tests are conducting, including assessments of cross-section dependence and slope homogeneity. The Augmented Mean Group (AMG) method is then utilized to explore the long-run estimates. The findings derived from the estimated health production function reveal that technological innovations have a direct positive impact on improving health outcomes, specifically in terms of life expectancy at birth and disability-adjusted life years (DALYs). Furthermore, the study highlights the significant role of technological innovations in promoting economic growth, environmental performance, and renewable energy generation. However, when incorporating these mediating variables alongside technological innovations in the health production function, the direct effects of technological innovations on health outcomes becomes less significant. This suggests that economic growth and environmental performance act as transmission channels, linking technological innovations to improved health outcomes. It is crucial for policymakers in the GCC countries to prioritize the implementation of policies that foster technological innovations, was they possess the potential to not only drive economic growth but also enhance environmental performance, ultimately leading to better health outcomes.