AbstractSustainable development is increasingly receiving attention from proactive firms. A consistent economic framework which could be used as the economic foundation of both sustainable development and firm strategies towards sustainable development is developed here. It is shown that organizational innovations play a crucial part. Sustainable development requires organizational innovations which could change the business perspective dramatically. Time seems to be a crucial factor when business decisions in accordance with sustainable development are to be made. The content and meaning of sustainable development are briefy discussed. The analysis focuses on the economic interpretation and ecological consequences; some empirical data used to evaluate the future of sustainable development are considered. A model for the economic basis of long‐term development is presente