Digitalisation, Digital Governance, and Eco-Innovation: Evidence from Cross-Country Data in 2022

This study examines the relationship between digitalisation and eco-innovation across countries, with a particular focus on the role of digital government and digital standardisation. Using cross-country data for 2022, eco-innovation is proxied by environment-related patenting activity, while digitalisation is measured using the United Nations E-Government Development Index (EGDI). Employing a combination of ordinary least squares, population-weighted regressions, spline specifications, and quantile regressions, we document three main findings. First, digitalisation is positively and robustly associated with eco-innovation across countries. Second, the relationship is non-linear, with marginal effects that strengthen at higher levels of digital development, suggesting important complementarities between digital capabilities and national innovation systems. Third, the association between digitalisation and eco-innovation is heterogeneous across the distribution of eco-innovation, with particularly strong associations observed among countries with intermediate levels of innovative activity. Taken together, these findings suggest that digitalisation is systematically associated with eco-innovation across countries and indicate the potential relevance of digital governance and digital standardisation to sustainable technological change.