Green innovation and export

Transitioning to a green economy is a major challenge for governments and businesses. Policies aimed at protecting the environment can reduce pollution and combat climate change, but they also influence how companies innovate and compete internationally. This project examines how strict environmental policies encourage companies to develop green innovations environmentally friendly technologies and practices and how these innovations affect productivity and the ability to export. The research focuses on three main questions: What factors encourage companies to invest in green rather than traditional innovations? How do these innovations impact productivity and exports? And which policies can best support green innovation and international competitiveness? To address these questions, the project analyzes data from thousands of companies across Europe and Austria, spanning approximately the last two decades. It compares environmental policies across countries, sectors, and time periods, identifying how green innovations are incentivized and how they spread within business networks. For Austrian companies, detailed data also allow the team to study local spillover effects, showing how clusters of innovative companies support growth and international trade. This project is original because it combines aspects rarely studied together: environmental policies, green innovation, productivity, and exports. While previous research often relied on small or selective samples, this study uses large, comprehensive datasets to provide solid, reliable evidence. The results will help policymakers design strategies that encourage environmentally friendly innovation while promoting economic growth and international competitiveness.