This paper investigates the impact of aligning an innovation strategy with Environmental, Social, and Governance (ESG) practices on innovation and non-innovation performance variables. Drawing on principles from Stakeholder Theory and Social Network Theory of Innovation, the research hypothesizes that ESG-driven firms will outperform non-ESG-driven firms in terms of future innovation outcomes, labor productivity, exporting, and survival rates. Using the Technological Innovation Panel (PITEC) database, the study compares the performance of two groups of innovative firms: ESG-driven companies and non-ESG companies. The findings reveal that ESG-driven companies exhibit better future innovation performance and, in terms of labor productivity, exporting, and survival, their performance is never inferior to that of non-ESG-driven firms. The study contributes to the literature by providing evidence that ESG-driven strategies enhance innovation outcomes and improve important performance metrics, supporting the Stakeholder Theory and linking it to the Social Network Theory of Innovation.This paper investigates the impact of aligning an innovation strategy with Environmental, Social, and Governance (ESG) practices on innovation and non-innovation performance variables. Drawing on principles from Stakeholder Theory and Social Network Theory of Innovation, the research hypothesizes that ESG-driven firms will outperform non-ESG-driven firms in terms of future innovation outcomes, labor productivity, exporting, and survival rates. Using the Technological Innovation Panel (PITEC) database, the study compares the performance of two groups of innovative firms: ESG-driven companies and non-ESG companies. The findings reveal that ESG-driven companies exhibit better future innovation performance and, in terms of labor productivity, exporting, and survival, their performance is never inferior to that of non-ESG-driven firms. The study contributes to the literature by providing evidence that ESG-driven strategies enhance innovation outcomes and improve important performance metrics, supporting the Stakeholder Theory and linking it to the Social Network Theory of Innovation.