Green research networks and environmental innovation: the role of regional absorptive capacity

This paper focuses on how R&D investment enhances absorptive capacity by facilitating knowledge transfer in green research networks across European regions. The study takes into account potential nonlinear effects by estimating the moderating impact of R&D deciles on the elasticity of patents to the variation in regional participation in green networks over the period 2003 to 2021. The results suggest a minimum threshold level of R&D investment for regions to benefit from participation in green networks and nonlinear increasing synergies between R&D spending and network participation. Since firms may struggle to reach the necessary critical threshold for R&D, public support for R&D can significantly amplify the effectiveness of network-focused policies.