Digital Infrastructure and Renewable Energy Innovation: The Moderating Role of Human Capital

Digital infrastructure enables green transformation, but its impact on renewable energy innovation depends critically on the availability of human capital. This study examines whether human capital acts as a mediator or moderator in the relationship between digital infrastructure and renewable energy innovation. Drawing on innovation systems and absorptive-capacity theory, we distinguish deployed human capital (advanced-educated labor) from human capital in formation (tertiary enrolment). Using dynamic panel data models for a sample of 22 countries (2000–2020), we find a positive association between digital infrastructure and renewable energy patenting. However, human capital does not mediate this link; instead, it conditions the relationship’s strength. The estimated marginal association is highly sensitive to human capital levels, progressively diminishing at higher levels of both deployed and in formation human capital. These findings suggest that the innovation returns to digital infrastructure depend on the timing and deployment of capabilities within innovation systems.These findings suggest that the innovation returns to digital infrastructure depend not only on digital expansion but also on the timing and deployment of capabilities within national renewable innovation systems. Consequently, digital transformation and human capital development policies should be pursued to align existing and emerging skills with green innovation needs.