Towards a EU Climate and Energy Union - A patent-based analysis for green innovation policy recommendations

This study examines the pivotal role of green innovation in driving Europe’s transition toward climate neutrality, focusing on green patent activity as a proxy for technological advancements in the EU-27 between 2000 and 2023. Leveraging comprehensive datasets from EPO’s PATSTAT and Espacenet, the research explores the interplay of regulations, trade, environmental taxes, expenditure R&D, international climate cooperation and international scientific collaboration. Findings highlight significant trends in green patenting across sectors with a key role played by scientific international collaboration and trade in recyclable raw materials. However, several gaps remain. The weak statistical significance of traditionally relevant variables like trade in high-tech and R&D expenditure suggest rethinking the paradigm of the EU clean innovation policy framework. By leveraging newly defined green innovation categories and linking green technologies to specific economic sectors, this study offers policy recommendations for enhancing innovation through strategic investment, international collaboration, and regulatory alignment aimed at implementing an effective and competitive EU Climate and Energy Union.