Experience in the OECD member countries in the last few decades show that economic growth on one hand, and increases in resource consumption and environmental degradation on the other, can be de-coupled to a considerable extent. This is realised by changing the nature of goods and services we produce, and how we produce, distribute and use them, through technological change and innovation.

Technology, however, is a double-edged sword, and can have both positive and negative impacts on human welfare. The path toward sustainable development lies in maximising the positive impacts while minimising the negative ones. The rate and direction of technological change need to be guided by appropriate public policies for the goal of sustainable development.

Public policies for this include environmental and social policies as well as science, technology and innovation policies. These policies need to be designed in a coherent manner to enhance technological change and innovation for sustainable development.

In an era of rapid technological change, new technologies, including biotechnology, information and communication technologies, play a crucial role in innovation for sustainability. The potential role of these emergent technologies need to be carefully assessed to design appropriate policies to enhance innovation and technological change for sustainable development.