What the study found
The study found that stronger national digitalization is positively associated with higher firm-level eco-innovation performance in Europe. It also found that this relationship is stronger in firms with greater internal digitalization intensity, which the authors describe as greater absorptive capability.
Why the authors say this matters
The authors conclude that their findings support sector-tailored digital–green strategies. They say these strategies should combine digital infrastructure and regulatory incentives in pollution-intensive sectors, and emphasize digital skills and financing mechanisms in high-technology industries.
What the researchers tested
The researchers analyzed a balanced panel of 4,976 firm-year observations across 17 EU countries from 2016 to 2024. They built a Principal Component Analysis (PCA)-based Digital Economy Index from four pillars: digital skills, infrastructure, business digitalization, and public services, and used regression, mediation, and moderation analyses.
What worked and what didn't
The results showed a positive association between national digitalization and eco-innovation performance. The mediation analysis suggests the link operates through reduced dependence on debt, rather than increased leverage, and the moderation analysis indicates stronger benefits for firms with higher internal digitalization intensity. Heterogeneity tests suggest the effects are more pronounced in high-technology and low-pollution industries, and weaker in pollution-intensive sectors.
What to keep in mind
The abstract does not describe detailed limitations. The study is based on firm-year observations from 17 EU countries over 2016 to 2024, so its scope is limited to that sample and period.
Key points
- A higher national digital economy index was positively associated with firm-level eco-innovation performance.
- The mediation analysis suggested the relationship worked through reduced dependence on debt, not increased leverage.
- Firms with greater internal digitalization intensity showed stronger eco-innovation benefits.
- Effects were more pronounced in high-technology and low-pollution industries.
- Pollution-intensive sectors showed weaker associations.
Disclosure
- Research title:
- Digitalization is linked to higher firm eco-innovation in Europe
- Authors:
- Marwan Mansour, Mohammed W.A. Saleh, Zaid Jaradat, Ahmad AL-Hawamleh, Mo’taz Al Zobi, Ahmad Marei
- Institutions:
- Academy of Public Administration, Al al-Bayt University, Amman Arab University, Amman Arab University, Middle East University, Palestine Technical University – Kadoorie
- Publication date:
- 2026-01-30
- OpenAlex record:
- View
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