Green Innovation Efficiency in Economic Development
Summary
Green innovation efficiency refers to the capacity of firms, industries or regions to generate environmental benefits through technological advancement relative to the resources invested in research, development and implementation. It has emerged as a critical metric in reconciling economic growth with environmental sustainability, encompassing reductions in carbon emissions, resource consumption and pollutant discharge alongside conventional measures of productivity and value added. Advances in analytical techniques—such as data envelopment analysis, Malmquist productivity indices and spatial econometric models—have enabled finer assessment of both the research and development phase and the commercialisation or achievement transformation phase. Empirical studies reveal pronounced regional disparities in efficiency, driven by factors including intensity of environmental regulation, availability of green finance, foreign direct investment, government R&D subsidies and the structure of local industries. In many economies, coastal or more developed regions exhibit higher efficiency scores, while inland or less industrialised areas lag behind. Addressing these gaps requires a combination of tailored policy instruments, incentive-based regulation and strategic deployment of financial resources to stimulate both incremental and breakthrough innovations. Global case studies demonstrate the importance of coordinated institutional frameworks, cross-border technology spillovers and public–private partnerships in accelerating the diffusion of green technologies and ensuring that high-quality economic development proceeds in tandem with ecological resilience.
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Green Innovation Efficiency in Economic Development publication trend
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Technical terms
Green innovation efficiency: A performance indicator comparing environmental and economic benefits from innovation against inputs such as capital, labour and materials.
Data envelopment analysis (DEA): A non-parametric method for assessing the relative efficiency of decision-making units by comparing multiple inputs and outputs.
Malmquist index: A productivity measure that captures changes in efficiency and technological frontiers over time.
Spatial spillover: The phenomenon whereby innovation activities or policies in one region influence outcomes such as productivity or emissions in neighbouring regions.
References
- Impact of Green Finance and Environmental Regulations on the Green Innovation Efficiency in China. Sustainability (2022).
- The Impact of Green Technology Innovation on Carbon Emissions in the Context of Carbon Neutrality in China: Evidence from Spatial Spillover and Nonlinear Effect Analysis. International Journal of Environmental Research and Public Health (2022).
- How Does Government Policy Improve Green Technology Innovation: An Empirical Study in China. Frontiers in Environmental Science (2022).
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