Green innovation and environmental performance: the role of economic interactions and technological contaminations across agri-food industries

This paper explores how economic interactions and technological contaminations across industries influence green innovation and environmental performance. It integrates the concepts of core supply-chain industries and general-purpose industries to identify industrial drivers of green innovation capacity. Core supply-chain industries are vital nodes in the global economic network, facilitating the flow of goods, materials, and services through input-output linkages (Criscuolo and Timmis, 2018). Conversely, general-purpose industries act as driver for innovation, developing versatile technologies for cross-sectoral use. The study hypothesizes that agri-food industries positioned as economic and technological hubs within global supply chains and innovation networks can access diverse knowledge bases and build recombination capabilities, boosting green technological progress and environmental performance. The study uses two main sources. The Global Resource Input Output Assessment (GLORIA), a multi-region input-output dataset, provides insights into interdependencies across industries in 31 European countries, the US, China, and the Rest of the World. The final dataset consists of 39 agri-food and bio-based industries from 1990 to 2020. Using network indexes and Global Value Chain participation to assess the influence of country-industries within global production networks. These value chain participation indicators are derived from the I-O table by performing the decomposition of gross exports into value-added components following the approach of Wang et al. (2013). The OECD RegPat Database offers green patent data by country and sector for the same period. By using a concordance approach to match technological IPC classes to GLORIA sectors and adopting a green patent identification process based on CPC-Y02 (climate change adaptation and mitigation), we measure the evolution of green invention capacity within each country-industry over time. Environmental performance is assessed using GLORIA satellite accounts, focusing on CO2 emissions relative to country value-added. The research employs quantitative methods, including network analysis and patent metrics, to link economic interactions and technological contamination with green innovation outcomes. Preliminary findings suggest that agri-food industries positioned as economic and technological hubs exhibit stronger green innovation and better environmental performance. Industries integrated into supply chains form strategic inter-industry partnerships, enhancing access to diverse knowledge bases. Similarly, industries with general-purpose technologies create platforms for cross-sectoral innovation. Quantitative analysis shows that industries with higher economic interconnections and technological contamination generate more green patents, reflecting higher innovation capacity. Moreover, economically and technologically interlinked industries achieve substantial CO2 emission reductions, demonstrating enhanced environmental performance. These industries not only improve their environmental impact but also gain economic benefits including value-added growth. The research offers new insights into how global value chain integration and technological innovation influence industrial contributions to environmental sustainability. The findings support the hypothesis that industries as economic and technological hubs are better equipped to foster green innovation and achieve superior environmental performance. The study underscores the strategic importance of positioning within production and innovation networks and suggests policy and decision-making recommendations for improving the circularity and sustainability performances of the agri-food systems.