Green Transformation Innovation

Author Name KIMURA Yosuke (Tokyo Institute of Technology)
Creation Date/NO. December 2023 23-E-086
Research Project Heterogeneity across Agents and Sustainability of the Japanese Economy
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As the risk of climate change has increased, companies have advanced their research and development in green transformation (GX) technologies. This paper utilizes the GX classification published by the Japan Patent Office to estimate the values of green and non-green innovation, and analyzes their impacts on firms' resource allocation and growth. This paper finds that (1) green innovation has higher value than non-green innovation on average, (2) non-green innovation measures at the firm level predict a future increase in sales, capital and labor, but green innovation measures do not have predictive power in terms of future variation of firm growth or resource allocation.