The impact of low-carbon technology trade, general innovation capability, and fossil fuel production on renewable energy patents in OECD and NICs

Energy security and concerns about decarbonization pressures have drawn the attention of researchers and policymakers to the advancement of innovations and technological diffusion for sustainable development. This study investigates the effects of low-carbon technology trade, innovation capability, and fossil fuel production on renewable energy patenting in OECD and NIC countries from 2003 to 2021. The study employs an advanced negative binomial fixed-effects model to account for over-dispersion in patent count data and unobserved heterogeneity across countries. The findings indicate that low-carbon technology trade is a key driver of renewable energy patents, while fossil fuel production negatively affects patenting activity in both OECD countries and NICs. Moreover, general innovation capability does not significantly increase renewable energy patents in OECD countries, but it exerts a positive effect in NICs. This research emphasizes the need for specific policy interventions to promote renewable energy patenting, especially in countries with high fossil fuel dependence and where innovation capabilities can be better leveraged for green technologies.