Environmental innovations, geographically mediated knowledge spillovers, economic and environmental performance

This paper explores the connection between environmental innovations, geographically mediated knowledge spillovers (geographical spillovers), economic and environmental performance. Specifically, with data gathered from the OECD database for three economic areas (Europe, Japan and USA) over the period 2005–2017 the paper focuses on measuring the relationship between patents in environmental related technologies as well as geographical spillovers and economic performance in terms of GDP. The empirical analysis evidence that innovation processes related to environmental technologies and geographical spillovers have a positive rela- tionship with GDP. The results also evidence a N-shaped Environmental Kuznets Curve, where the direction (negative or positive) of the relationship between environmental (CO2 emissions) and economic performance depends on the economic development level of a country. The results bring forth important lessons for ‘green growth’ policies.