Corporate innovation capacity, national innovation setting, and renewable energy use

Abstract

This study combines both the resource-based view and institutional theory to investigate the relationship between a company's innovation capabilities and its consumption of renewable energy sources within well-established innovation ecosystems. Drawing on a comprehensive dataset of 14,506 observations covering 2007 to 2018, we executed the country-industry-year fixed-effects regression. The analysis reveals that a nation's innovation framework significantly influences the connection between a firm's innovation capabilities and its use of renewable energy. This relationship is moderated by key indicators of the nation's innovation climate, including the quality of scientific research institutions, university–industry collaboration, and government involvement in technology procurement. These findings emphasise the importance of institutional factors in fostering synergy between a company's innovation capacity and its consumption of renewable energy sources. They highlight the potential benefits of collaboration between firms and governments in promoting renewable energy consumption, especially in an era where innovative energy solutions are critical. This evidence underscores the need for a supportive macro-level policy environment alongside corporate initiatives to facilitate the transition to cleaner energy sources.