Leveraging the OECD Framework to Create Policies That Enable Eco-Innovation: A Case study of Neom

Abstract

Amid escalating urbanization worldwide, cities confront the imperative to reconcile economic growth and environmental sustainability. This study employs a comparative analysis to evaluate the applicability of the Organization for Economic Cooperation and Development’s (OECD) seminal eco-innovation policy framework within Saudi Arabia’s emergent Neom City. The OECD framework delineates a robust policy ecosystem encompassing economic incentives, regulatory standards, market facilitation mechanisms, and knowledge exchange networks to catalyze eco-innovation. Initial benchmarking reveals lacunae within Neom’s extant sustainability planning, including limited financial incentives for green technology adoption and nascent sustainability education programs. Targeted integration of OECD prescriptions could potentiate Neom’s eco-innovation across multifaceted domains spanning renewable energy integration, energy efficiency, green infrastructure, and sustainable mobility. Urban policymakers can operationalize elements of the OECD’s model to align Neom’s development objectives with ecological sustainability, propelling its ambitions to manifest as an pioneering sustainable city. This research proffers strategic insights that can enable urban governance actors worldwide to leverage policy architectures to synergize economic growth and sustainability.