Abstract
Reaching the sustainable development goals needs innovations. This paper addresses the dynamics of green energy and resource efficiency innovations, and looks at the positioning of countries from the North and emerging economies. We use indicators for both general innovation capabilities and specific green technology capabilities. Data on general innovation capabilities reveal that the traditional OECD countries, by and large, still possess advantages compared to Newly Industrializing Countries (NICs). Literature and Patent indicators reveal that the innovation dynamics are particularly high for publications. Literature and exports indicators reveal that the South has been catching up substantially. With regard to patents, some countries of the South are catching up, but the North is still cleary leading. A detailed analysis of co-patenting and country-to-country trade data reveals a more differentiated picture: Leading countries from Europe such as Germany as still specializing on serving the markets of traditional OECD countries. Japan and Korea are very reluctant with regard to co-patenting, but specialize in exporting to China. South-South trade in green technologies is the fastest growing market segment. However, countries of the South are pursuing a differentiated strategy: Mexico is highly integrated into the US economy. Singapore and South Korea have been catching up and provide technologies especially for China. China itself is following a double strategy, with absorbing technology from the North in order to compete on markets of the North on the one hand, but increasingly specializing on becoming lead supplier for countries of the South on the other hand. The other technology providers from the South are mainly specializing in supplying other countries from the South. Thus, a segmentation of the market is likely, with green sustainability innovations in the South more likely originating in the South as well, and China being an important country to adapt knowledge from the North to the needs of the South.
Highlights
After deciding on the Sustainable Development Goals (SDGs) in the post Rio + 20 process, and after the Paris Agreement, innovations to reach the SDGs have gained in importance in policy debates
We draw on the corruption perception index of Transparency International, which ranks countries based on how corrupt their public sector is perceived to be, and data from the World Bank, which collects a dataset summarizing the views on the quality of governance
We look at data from the World Bank, which collects a dataset summarizing the views on the quality of governance provided by a large number of enterprise, citizen and expert survey respondents in industrial and developing countries
Summary
After deciding on the Sustainable Development Goals (SDGs) in the post Rio + 20 process, and after the Paris Agreement, innovations to reach the SDGs have gained in importance in policy debates. Environment-related goals such as water quality, climate and living on land (SDG No 13 to 15) are highly related to providing necessary access to energy and safe drinking water (SDG No 7 and 8), which in itself is a key to improving the health situation (SDG No 3). All this is tied to the future of cities and infrastructures (SDG No 9 and 11), with consumptions patterns interacting with production (SDG No 12). All this is tied to development perspectives of the North and South, with regard to reducing inequalities within and between generations (SDG No 10)
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