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 reports that this link is stronger for firms with greater internal digitalization intensity.
Why the authors say this matters
The authors conclude that their findings offer empirical evidence on how digital transformation supports sustainable innovation. They say the results point to sector-tailored digital–green strategies and relate to the EU’s twin digital–green transition agenda.
What the researchers tested
The researchers analyzed a balanced panel of 4,976 firm-year observations from 17 EU countries between 2016 and 2024. They built a Digital Economy Index using principal component analysis from four pillars: digital skills, infrastructure, business digitalization, and public services, and then applied regression, mediation, and moderation analyses.
What worked and what didn't
The results show a positive association between national digitalization and eco-innovation performance. The mediation analysis suggests the relationship works through reduced dependence on debt rather than increased leverage, and the moderation analysis suggests firms with stronger absorptive capabilities gain more from digitalization. The effect appears 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 specific study limitations. The findings are based on EU firms and countries only, so the scope described in the summary is limited to that setting.
Key points
- The study found a positive association between national digitalization and firm-level eco-innovation in Europe.
- A Digital Economy Index was built from digital skills, infrastructure, business digitalization, and public services.
- The mediation analysis suggests reduced dependence on debt, not increased leverage, helps explain the link.
- Firms with greater internal digitalization intensity showed stronger eco-innovation benefits.
- The association was stronger in high-technology and low-pollution industries and weaker in pollution-intensive sectors.
Disclosure
- Research title:
- Stronger 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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