Combining digital and green technologies in regions: how to close the gap with respect to the frontier?

Stefano Basilico, Alberto Marzucchi and Sandro Montresor

No 2440, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: This paper focuses on the combination of green and digital technologies at the regional level. Using patent data, we put forward an original measurement of the regional speed of green-digital (i.e. twin) combination: the temporal distance between the time at which a combination is realised for the first time in the frontier region and the time at which this same combination is accomplished in the focal region. We proceed by investigating the drivers and the technological impact related to this speed. We find that the speed of combination is enhanced by dealing with broad and diverse twin technologies. The speed at which the gap is closed, also crucially depends on the interdependencies between green and digital domains, captured by the overlap in their knowledge bases. Counterintuitively, the longer the combination paths, the faster the region combines green and digital technologies. This finding is then rationalised further looking at the policy and network characteristics. Finally, we find that the earlier the combination happens, the greater is likely to be the impact on subsequent inventions, but only for granted patents. Overall, these results are discussed in terms of policy recommendations, given the high attention placed by policymakers on the twin transition.

Keywords: Twin transition; Digital technologies; Green technologies; Regional knowledge base (search for similar items in EconPapers)
JEL-codes: O31 O33 Q55 R11 R12 (search for similar items in EconPapers)
Date: 2024-12, Revised 2024-12
New Economics Papers: this item is included in nep-ene, nep-env, nep-geo, nep-ino, nep-sbm, nep-tid and nep-ure
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