How does digital knowledge shape regional green diversification? European evidence from a twin transition perspective

This study contributes to the twin transition debate by examining the role of digital knowledge in facilitating green diversification. Drawing on the literature on evolutionary economic geography, we are particularly interested in digital relatedness. We employ a spatially lagged X (SLX) logit model for 380 European regions for the period 1990–2019. Our findings deepen the understanding of the digital-green nexus, suggesting that related pre-existing digital technologies matter more for green than for non-green diversification. Further, while the existence of related digital technologies encourages regional development into complex green domains, our results suggest that regions do not rely on digital knowledge when diversifying into non-complex green technologies.