1. Introduction

Innovation strategy and sustainable development are the issues that attract the most attention today. Previous studies have highlighted the fact that innovation may help businesses become more competitive in the market by increasing production efficiency, cutting costs, and improving product quality [1]. At the same time, innovation can also help companies develop new markets and business areas and achieve sustainable development. From a social perspective, social progress and development can be promoted by innovation which can also improve people’s living standards. For example, technological innovation in medical care, education, transportation, and other fields can improve people’s quality of life and social welfare. Meanwhile, innovation can promote employment, economic growth, socio-economic prosperity, development.

About the environment, innovation can help companies achieve green and sustainable development and reduce negative environmental impacts. For example, companies can reduce energy consumption and pollutant emissions in the production process through technological innovation, energy substitution, etc., thereby protecting the environment and improving ecological quality. At the same time, green innovation can also bring new business opportunities and competitive advantages, creating more economic value for enterprises [2]. Salim analysed articles and bibliographic information to explain the importance and methods of green innovation [3]. Innovation, as an engine that promotes the competitive advantage and growth of enterprises and society, has become one of the essential elements of development.

On the other hand, sustainable development emphasises long-term responsibilities and impacts on the economy, society and the environment. Sustainable development is about meeting current needs while protecting and maintaining resources to ensure the survival needs of future generations. Its core principles include balanced the development of economic, social and environmental , efficient use and protection of resources. Many scholars have studied the current situation of sustainable development in China. Zhang studied sustainable development by comparing different provinces in China [4]. The theoretical basis of sustainable development provides theoretical guidance for enterprises to focus on long-term development and social responsibility in the business process. Businesses play an important role in sustainable development. Not solely ought they to prioritize their economic interests, but they must also contemplate the ramifications on society and the environment. The tripartite nature of corporate responsibility encompasses economic, social, and environmental duties. Notably, environmental accountability stands at the helm of sustainable development. When evaluating a company's sustainability, economic, social, and environmental metrics serve as key indicators.

Despite the significant attention and research given to both innovation and sustainable development, a surprisingly limited number of literature reviews have delved into the intricate link between the two.This research aims to provide new perspectives and thinking for academia and practice, promote the organic combination between innovation and sustainable development, and facilitate enterprises to achieve more balanced and sustainable development in the economy, society and environment.

2. Innovation and Sustainable Development

2.1. Sustainable Economic Development

There is no doubt that innovation has many benefits for economic development. Through innovation, companies can improve resource utilisation efficiency and achieve improved economic benefits. Scholars have proposed various theoretical frameworks to explain how innovation promotes sustainable development. Wang et al. created corporate digital transformation indicators using Python technology using data from Shanghai and Shenzhen A-share listed companies between 2011 and 2020. To measure corporate sustainable development performance more thoroughly, they combined financial and environmental performance [5]. The impact of digital transformation on corporate sustainability performance is explored from theoretical and empirical levels. The conclusion demonstrates the positive impact of digital transformation on corporate sustainable development and reflects the role of innovation in promoting sustainable development. Lu et al. delved into the influence of ambidextrous learning and its complementary nature on the sustainable development performance of enterprises operating in a dynamic context. Utilizing theories such as organisational learning, continuous innovation capability, sustainable development performance, synergy, and contingency, they established a linkage between dual learning (consisting of exploratory and exploitative learning) and sustainable development performance. Their findings suggest that the enhancement of innovation capabilities can lead to improvements in sustainable development performance [6]. Li et al. found through statistical analysis of questionnaires from 196 high-tech enterprises that ambidextrous innovation will positively impact corporate sustainable development and that these two different innovations will have different impacts on sustainable development [7]. Karel highlights the significance of technological innovation at the transitional level as the most comprehensive aspect for fostering long-term sustainable development. This level holds the greatest potential for improvement, indicating its pivotal role in achieving sustainable progress [8]. The research of the above scholars all reflects innovation. The role of enterprises in improving resource utilisation efficiency. In increasingly severe global resource constraints, how companies can improve economic efficiency has become an urgent issue. By developing a series of cost-reducing and efficiency-increasing technologies, companies can reduce energy consumption, improve efficiency, and win market share and consumer favour. It is worth noting that different innovations have completely different impact paths.

For instance, the relationship between exploitative innovation and corporate sustainable growth is somewhat facilitated by shared mediating factors like long-term competitive advantage and short-term financial success. On the other hand,long-term competitive advantage acts as a comprehensive bridge between corporate sustainable development and exploratory innovation [7]. Furthermore, technological change exhibits varying degrees of influence on sustainable development, ranging from incremental optimisations of individual artefacts to significant artefact modifications, system-level changes, and ultimately technological transitions that encompass alterations in production and consumption patterns.However, there is still a lack of research in this area, and blind innovation can sometimes be counterproductive. For example, after Nokia fell behind by insisting on using the Symbian system, Striving for change, Bian and Microsoft chose to develop the Windows Mobile system instead of using existing Android and other systems, accelerating Nokia’s demise. Blind innovation will lead to negative impacts such as loss of market opportunities, waste of resources and damage to brand image. Therefore, enterprises need to remain rational, cautious, and forward-looking during the innovation process, so choosing an appropriate innovation model based on the actual situation is also essential to improving development efficiency.

2.2. Sustainable Development of Society and Environment

Simultaneously, innovation holds immense potential in addressing social and environmental challenges and promoting sustainable development, as extensively explored by scholars. Kwieciński employed a range of research methods, including traditional middle-order system analysis and institutional-legal approaches, alongside contemporary techniques such as sociological neo-institutionalism and network analysis [9]. The majority of studies analyzing the significance of social innovation for sustainable development rely on quantitative methods. Aricò highlights the contribution of scientific knowledge and innovation in addressing environmental issues at the international level, particularly within the framework of the United Nations [10]. Voegtlin discusses how governments and international organizations can promote responsible innovation to tackle the pressing sustainability challenges facing Earth's life support systems [11]. Mihaela's findings underscore the significance of innovative, sustainable entrepreneurship among SMEs as part of the support system for sustainable development. Entrepreneurial enterprises are increasingly recognized as a driving force for innovation and competitiveness, crucial to achieving sustainable development [12]. Ashford argues that sustainable development necessitates stimulating revolutionary technological innovation through regulations governing the environment, health, safety, economics, and the labor market [13]. Innovation holds the key to enhancing environmental and social sustainability by addressing issues such as climate change, ozone depletion, disaster risk, food security, biodiversity loss, social instability, and ineffective governance. For society and the environment, it may be necessary for influential groups such as governments and international organisations to take responsibility for promoting innovation because it is difficult for companies to improve profits through environmental innovation in the short term. Encouraging innovation and promoting sustainable development technologies and models can effectively achieve economic and social development. Coordinated development with the environment. Economic, social, and environmental sustainable development are not independent but are interrelated and mutually reinforcing. Innovation strategies need to be integrated with sustainable development goals to achieve triple benefits for the economy, society and environment. For example, companies can comply with national policies by implementing green innovation and developing environmentally friendly products and energy-saving technologies to achieve economic growth and environmental protection.

3. The Impact of Sustainable Development on Innovation

3.1. The Role of Sustainable Development in Promoting Innovation

Achieving sustainable development goals also requires innovation, and sustainable development provides new opportunities for innovation. Companies can discover new market needs and business opportunities by paying attention to social and environmental issues, thereby driving innovation. Competition between markets and countries for future development also promotes innovation. Walz's research demonstrates that competition among nations stimulates the development of innovative capacity, leading to the achievement of Sustainable Development Goals. This conclusion is drawn by examining the dynamics of green energy and resource efficiency innovations while considering the positioning of both northern and emerging economies [14]. Spangenberg underscores the significance of sustainability science in driving progress towards sustainability and bridging the gap between science and the general populace. He believes that sustainability science presents an opportunity to make innovation more accessible [15]. Today, sustainability has emerged as one of the most crucial drivers of innovation, as it encourages the development of sustainable solutions that address environmental and social challenges.

3.2. Sustainable Development’s Requirements for Innovation

Sustainable development requires innovation to be long-term and sustainable. The traditional short-term profit-oriented innovation model may ignore the consideration of future impacts, while sustainable development requires companies to think about innovation from a long-term perspective. This means that innovation must consider current market needs, future social and environmental trends, and relevant laws and regulations changes. Only in this way can enterprises continue to create value in an ever-changing environment and achieve long-term sustainable development. Albino conducted a study focusing on a sample represented by the companies listed in the Dow Jones Sustainability World Index. His findings indicate that the innovations in green products among many sustainability-driven companies are influenced by the specificities of their environmental strategy, economic sector, and geographical area. This suggests that companies need to take into account their unique contextual factors when developing sustainable products and strategies. It shows us that sustainable development policy guides innovation [16]. The essence of sustainable development lies in fulfilling current needs without compromising the viability of meeting future generations' needs. In other words, it aims to strike a balance between economic growth, social progress, and environmental protection, ensuring that our actions today do not hinder the ability of future generations to thrive. These requirements have many positive implications for the standardisation and feasibility of innovation. Innovation under the requirements of sustainable development will be more effective and effective for enterprises, society, and the environment and have a more far-reaching influence.

4. Negative Impact Between Innovation and Sustainable Development

As blind innovation may harm corporate interests, as mentioned above, innovation has many negative impacts on sustainable development. This situation can be found in many cases in the development of human society. Artificial intelligence (AI) has emerged as a popular field of innovation, promising remarkable advancements and transformations across various industries. However, concerns have arisen regarding the potential impact of AI development on unemployment, particularly in highly technologically advanced countries. This potential wave of job displacement could potentially hinder society's progress towards sustainable development.To address these concerns, Mutascu employed a theoretical model to investigate the impact of AI on unemployment in highly developed nations. This model aims to gain a deeper understanding of the relationships between AI's advancements, job displacement, and economic factors. By doing so, it hopes to provide valuable insights into the potential risks and opportunities posed by AI's development.While AI undoubtedly has the potential to automate jobs and displace workers, it is also important to consider the benefits it brings. For instance, AI can enhance productivity, efficiency, and innovation in various sectors, leading to economic growth and job creation. Therefore, it is crucial to strike a balance between harnessing AI's benefits and mitigating its potential negative impacts on employment.To achieve this balance, society must invest in reskilling and upskilling the workforce to prepare them for the new job opportunities that AI brings. Additionally, policies and frameworks need to be established to ensure that the benefits of AI are distributed evenly across society, minimizing economic disparities and promoting sustainable development.In conclusion, while the impact of AI on unemployment is a valid concern, it should not detract from the remarkable benefits AI brings. Instead, society should focus on harnessing AI's potential while mitigating its negative impacts on employment to promote sustainable development. [17]. It shows that innovation sometimes hurts social development. Sustainable development also has many constraints on innovation. Implementing sustainable development policies and regulations may impose certain norms and restrictions on innovation activities. Implementing sustainable development measures may increase companies’ costs, which may affect their investment in innovation, increase production costs, and thus reduce the funds companies spend on R&D and innovation.

Overemphasis on sustainable development and neglect of technological innovation will also make it difficult to promote overall progress. Huesemann demonstrates that eco-efficiency improvements alone are insufficient to guarantee the sustainability of contemporary Western industrial societies. Therefore, innovations that solely focus on improving eco-efficiency are unlikely to be effective in achieving sustainability [18]. Moreover, Mace explored how physical limits on resource use should be addressed. Sustainable development must abide by ecological principles. This shows us that innovation can also be constrained by sustainability. However, the current research on the negative impact of innovation and sustainable development needs to be more extensive. In the future, scholars should also Pay attention to research in this area.

5. Balance Between Innovation and Sustainable Development

Finding a balance between innovation and sustainable development is a top priority to mitigate these negative impacts. Regarding the artificial intelligence squeezing employment space mentioned above, if a balance between humans and artificial intelligence can be found, this situation may not happen in some places. Shen and Zhang's research reveals that contrary to traditional beliefs, robotics have not resulted in a displacement of labor jobs, but rather have had a positive impact on the overall labor market [19]. Other scholars have also examined this aspect, with Bryden discussing how innovation systems must consider the needs and rights of those reliant on natural resources for their livelihoods. He concludes with general principles for designing innovation systems in economies based on natural resources [20]. Bring progress to society. As Vollenbroek said in his research, society should be used to ensure direct innovation towards sustainable development [21]. To balance innovation and sustainable development, interdisciplinary cooperation and exchanges should be strengthened and learned from different. This study employs the theories and methodologies of the discipline to enhance our comprehension of the intricate linkage between innovation and sustainable development.

6. Conclusion

A comprehensive literature review reveals that innovation serves as a pivotal driver of social progress and economic growth. Furthermore, it is emphasized that sustainable development is the sole viable path to guarantee the long-term sustainability of this progress and growth. On the one hand, innovation provides a strong driving force that supports sustainable development by promoting technological progress, optimising resource allocation, improving production efficiency, etc. On the other hand, sustainable development also requires that innovation activities consider the balance of the triple bottom line of environment, society and economy, thereby guiding innovation to develop in a greener, more inclusive and more sustainable direction.

However, this study also points out that innovation and sustainable development are only sometimes harmonious. In some cases, innovative activities may negatively impact the environment and society due to short-sightedness or profit motivation, thereby threatening the foundation of sustainable development. Similarly, strict requirements for sustainable development may sometimes limit the space and speed of innovation, making it difficult to implement some innovative projects with potential value but unknown risks. These negative impacts highlight the incomplete understanding of the intricate relationship between innovation and sustainable development, indicating the need for further research and practice to deepen our comprehension in this domain.

Several directions deserve special attention. First, it is necessary to research further the negative impacts of innovation and sustainable development to assess the actual impact of different innovation activities on sustainable development more accurately and achieve a balance between innovation and sustainable development accordingly. Secondly, it is imperative to enhance interdisciplinary collaboration and exchanges, leveraging theories and methodologies from diverse disciplines to broaden our comprehension of the intricate relationship between innovation and sustainable development. Finally, exploration at the practical level is also crucial. Through case studies, pilot projects, etc., that can test the practicality of theoretical research results and provide valuable experience for future policy formulation and practice.