The energy crisis of the 1970s sparked a great deal of research and serious criticism of resource scarcity and economic collapse, especially since modern economies use huge amounts of energy. Despite the tendency of many economists, especially Malthus, to the pessimistic view regarding the inevitability of running out of the resource in the long term, and thus its negative impact on growth, there are those who see the ability of innovation in reducing the scarcity of the resource. Therefore, this study aimed at analyzing the role that innovation plays in reducing the resource exhaustion, through 6 chapters that included presenting a theoretical analysis of the relationship between innovation and resource scarcity within the framework of literature and mathematical models, as well as a graphical analysis by presenting examples of the most prominent sectors in which this relationship emerged, Then re-modeling the relationship between innovation and scarcity of resources to come up with a model that is more flexible and capable of being applied to most countries of the world. Finally, the study used the standard method to clarify the relationship using two different approaches. The first approach explains the relationship within the framework of inputs (consumption) and using the Generalized GMM Method of Moments during the period (2000-2021). The study concluded that there is a positive role for innovation in promoting energy efficiency; Increasing spending on research and development by 1% of output will lead to a decrease in energy intensity (for higher energy efficiency) by 0.04%. As for the second approach, it explains the relationship between innovation and scarcity of resources in the framework of outputs (production), and in it the study relied on creating a Simultaneous Equation Model for economic growth, by relying on the model proposed by the researcher's mathematical analysis. Using a sample of 15 countries that are among the largest oil producing countries in the world during the period (1994-2019), and by applying the 3SLS method, I found that there is a positive impact of innovation on the existing reserves of the scarce resource. An increase in innovation by 1% leads to an increase in oil reserves by 126%, and this corresponds to the term "recovery or enhanced oil technology", which means that the use of more unusual methods and technologies can increase the amount of oil that can be extracted from the oil field.