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<p>This study analyzes the relationship between institutional quality and green innovation in Italian regions. We examine how varying levels of institutional quality influence the regional capacity to generate green innovation, disentangling the effects related to economic institutions (corruption, government effectiveness, and regulatory quality) from the impacts associated with political institutions (rule of law and voice and accountability). Using a panel of data for 2004–2018 on green patents, we use an instrumental variable approach to control for endogeneity and several robustness checks. Our results show that the most critical drivers of green innovation are related to the quality of political institutions. These findings remain robust, even when checking for economic and environmental controls, demonstrating that green innovation is more related to political decisions and social capital than to innovation in general. These results will support policy makers and the national and regional level in defining tailored place-based policies in Italy.</p>

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What kind of institutional quality matters for green innovation in Italy? a regional perspective

  • 期刊论文

  • 发表日期：

    2026年7月21日

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  • Adriana Carolina Pinate,
  • Martina Dal Molin,
  • Maria Giovanna Brandano

摘要

This study analyzes the relationship between institutional quality and green innovation in Italian regions. We examine how varying levels of institutional quality influence the regional capacity to generate green innovation, disentangling the effects related to economic institutions (corruption, government effectiveness, and regulatory quality) from the impacts associated with political institutions (rule of law and voice and accountability). Using a panel of data for 2004–2018 on green patents, we use an instrumental variable approach to control for endogeneity and several robustness checks. Our results show that the most critical drivers of green innovation are related to the quality of political institutions. These findings remain robust, even when checking for economic and environmental controls, demonstrating that green innovation is more related to political decisions and social capital than to innovation in general. These results will support policy makers and the national and regional level in defining tailored place-based policies in Italy.