Exploring The Role Of Green Innovation In Green Development Around The World: Implications For Economic Growth

Abstract

The aim of this research was to conduct an in-depth analysis of green innovation's influence on green development by examining how these effects may change based on factors like a country's gross capital formation, digital transformation, and education levels. Subsequently, green innovation was tested for its role in strengthening the previously established positive relationship between green development and economic growth, according to past studies. Country-level data from 161 nations, including 20 developed countries and 141 developing countries, spanning 1975 to 2022 was collected from sources namely the World Bank National Accounts Data and OECD Data, resulting in over 3,089 unique data observations. Results from multiple linear regression models showed that advances in green innovation correlate with increased green development. Further analysis indicates these impacts are more pronounced for countries with higher gross capital formation, greater digital transformation, or higher education levels. Finally, the study found that the positive link between green development and economic growth appears to be strengthened by high levels of green innovation.