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Digital technologies and eco-innovation. Evidence of the twin transition from Italian firms

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  • Sandro Montresor
  • Antonio Vezzani

Abstract

This paper investigates how the twin transition (digital & green) unfolds within firms by relating investments in digital technologies to the propensity of eco-innovating production processes and models. Drawing on a heterogeneous theoretical background, digital technologies can be hypothesised to enable eco-innovation across the board. However, a greater eco-innovation impact is expected from Artificial Intelligence and from bundling digital investments. Using the new Permanent Census of Firms of the Italian National Statistical Office, these hypotheses are tested on a large sample of more than 150,000 firms. Results confirm that the contribution of digital technologies to a firm’s eco-innovation is mainly driven by investments in AI application areas, while investments in other digital technologies work more selectively. Moreover, new eco-innovative production processes and models benefit from bundling investments in different digital technologies, but with differences among firms of different size.

Suggested Citation

  • Sandro Montresor & Antonio Vezzani, 2023. "Digital technologies and eco-innovation. Evidence of the twin transition from Italian firms," Industry and Innovation, Taylor & Francis Journals, vol. 30(7), pages 766-800, August.
    • Handle: RePEc:taf:indinn:v:30:y:2023:i:7:p:766-800
    DOI: 10.1080/13662716.2023.2213179
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    Citations

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    Cited by:

    1. Nelli, Linnea & Virgillito, Maria Enrica & Vivarelli, Marco, 2025. "A Twin Transition or a Policy Flagship? Emergent Constellations and Dominant Blocks in Green and Digital Technologies," IZA Discussion Papers 17779, Institute of Labor Economics (IZA).
    2. Benedetta Montanaro & Annalisa Croce & Elisa Ughetto, 2024. "Venture capital investments in artificial intelligence," Journal of Evolutionary Economics, Springer, vol. 34(1), pages 1-28, January.
    3. Abbasiharofteh, Milad & Kriesch, Lukas, 2024. "Not all twins are identical: the digital layer of “twin” transition market applications," Papers in Innovation Studies 2024/16, Lund University, CIRCLE - Centre for Innovation Research.
    4. Gianluca Biggi & Martina Iori & Julia Mazzei & Andrea Mina, 2024. "Green Intelligence: The AI content of green technologies," LEM Papers Series 2024/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Prakhar Prakhar & Rachana Jaiswal & Shashank Gupta & Syed Zamberi Ahmad & Patrice Piccardi & Gabriele Santoro, 2025. "How can we improve entrepreneurial dynamics in electric vehicle manufacturing for a sustainable future: insights using a deep learning-based hybrid PLS-SEM-ANN approach," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-45, December.
    6. Benedetti, Ilaria & Guarini, Giulio & Laureti, Tiziana, 2023. "Digitalization in Europe: A potential driver of energy efficiency for the twin transition policy strategy," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    7. Usman, Muhammad & Simionescu, Mihaela & Radulescu, Magdalena & Balsalobre-Lorente, Daniel, 2024. "Breaking barriers, cultivating sustainability: Discovering the trifecta influence of digitalization, natural resources, and globalization on eco-innovations across 27 European nations," Resources Policy, Elsevier, vol. 94(C).

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