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Green Innovation and National Competitiveness: Rethinking Economic Resilience in the Sustainability Transition

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  • Natália Teixeira

    (ISG—Business & Economics School, 1500-552 Lisbon, Portugal
    CEFAGE—Center for Advanced Studies in Management and Economics, 7000-809 Évora, Portugal
    CIGEST—Center for Management Research, 1749-045 Lisbon, Portugal)

Abstract

With environmental and economic disruptions occurring faster than ever before, the link between green innovation and national competitiveness deserves further analysis. This article investigates how sustainability-oriented strategies (particularly investments in research and development (R&D), renewable energy, and innovation capacity) affect the performance of environmental goods exports and national economic resilience. An exploratory cross-sectional analysis is conducted using multiple linear regression models applied to a sample of 14 countries, including the seven most sustainability-oriented economies and seven countries whose economic growth relies predominantly on fossil fuels. The results suggest a strong positive relationship between R&D expenditure and green trade competitiveness, while renewable energy consumption indicators produce mixed or even negative short-term effects. Adjusted net savings emerge as a robust indicator of both growth and competitiveness. However, no significant associations were found between renewable energy indicators and economic resilience, highlighting transitional trade-offs and institutional barriers inherent in ecological transformation. The study contributes to the growing literature on green transitions by combining macroeconomic indicators of innovation and sustainability with export performance. Policy implications include aligning innovation strategies with trade objectives, improving the measurement of green competitiveness, and supporting institutional preparedness for the transition.

Suggested Citation

  • Natália Teixeira, 2025. "Green Innovation and National Competitiveness: Rethinking Economic Resilience in the Sustainability Transition," Sustainability, MDPI, vol. 17(17), pages 1-16, August.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:17:p:7660-:d:1732168
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    References listed on IDEAS

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