Green technological innovations and green growth: Examining the differential associations of environmental, climate adaptation, and ocean technologies

Abstract

This study examines the relationship between Green Technological Innovation (GTI) and green growth, with particular attention to Environmental-Related Technologies (ERTs), Climate Change Adaptation Technologies (CCATs), Sustainable Ocean Technologies (SOTs), and the development and diffusion phases of ERTs. Using panel data from 50 developed and developing countries over the period 1996–2021, the analysis employs Fixed Effects, Random Effects, and two-step System GMM estimators. The findings reveal substantial heterogeneity across technology domains. ERTs and SOTs are positively and significantly associated with green growth, whereas CCATs exhibit insignificant associations, highlighting the need for domain-specific policy approaches. Furthermore, both the development and diffusion phases of ERTs contribute positively to green growth, underscoring the importance of supporting the full innovation cycle. Among the control variables, renewable energy consumption, capital stock, and foreign direct investment are positively associated with green growth, while trade openness and labor force expansion present relative challenges. By distinguishing among GTI domains and innovation phases, this study provides one of the first cross-country assessments of their differential associations with green growth, offering policy-relevant insights for advancing environmental sustainability and the Sustainable Development Goals.