Digitalization and green innovation: a fuzzy­set qualitative comparative analysis based on 30 provinces in China
Authors: Yan Chenli , Wang Derek D. 
Published: January 2025

Purpose
Amid the pressing global need for sustainable development and environmental protection, exploring effective pathways to foster green innovation has become crucial. This study aims to examine the impact of digitalization on green innovation by analyzing its interactions with micro and macro factors.

Design/methodology/approach
This paper adopts a multi-level perspective (MLP) with a multi-agent framework to study how different factors impact green innovation efficiency. This paper uses fuzzy-set qualitative comparative analysis (fsQCA) on 30 Chinese provinces from 2012 to 2021 to identify key conditions and pathways for green innovation efficiency.

Findings
The findings reveal that digitalization alone does not constitute a necessary condition for green innovation. Rather, digitalization needs to be configured with other factors to form dynamic causal paths. In 2012–2016, a single path type (digitalization coupled with regional innovation and marketization) exists. In 2017–2021, two causal path types [digitalization and foreign direct investment (FDI), digitalization and regional innovation] emerge.

Research limitations/implications
The study has three theoretical contributions. First, while previous research studies often focus on single factors, the study examines the complexity of green innovation from a configurational perspective. Using the fsQCA method, this paper explores complex interactions and asymmetric causal relationships among multi-level factors. Second, this paper presents a novel theoretical framework that integrates the MLP framework with the multi-agent framework, facilitating a multi-dimensional analysis of green innovation. This synthesis elucidates the complex network of relationships, interactions and dependencies that propel green innovation. Third, responding to the call in international dynamic QCA research, this paper uses the multi-period QCA method. This allows for a detailed stage-by-stage comparative analysis, elucidating green innovation paths and revealing evolutionary trends of “configurational diversity” and “factor concentration.” This research offers practical insights for policymakers and stakeholders to develop more effective, tailored strategies for promoting green innovation.

Practical implications
Digitalization alone cannot fully drive green innovation; it must be combined with factors such as marketization, regional innovation and FDI. To achieve this, promote market-oriented reforms to enhance market mechanisms and encourage participation in green innovation projects through incentives. Increase investment in regional innovation, establish platforms for resource sharing and technological exchange and support cooperation between local governments and businesses. Additionally, it attracts FDI by creating favorable policies and a conducive business environment. Adapting policies to evolving conditions is crucial. Regularly assess and update policies to ensure their effectiveness and relevance in the face of changing technological and market landscapes. Optimize approval processes, reduce bureaucratic hurdles and improve policy implementation efficiency. Regions should also tailor strategies to their specific needs: those with high digitalization but lacking FDI should focus on building a robust research and development (R&D) personnel base, while regions with high FDI but insufficient local talent should attract skilled professionals through talent attraction programs and partnerships with international universities. Continuously adapting strategies ensures that regions can effectively drive sustainable development and green innovation.

Social implications
The research advances the understanding of green innovation by examining multi-level configuration effects, introducing an integrated framework and conducting stage-by-stage comparative analysis. These contributions collectively enhance the theoretical foundation and practical applicability of promoting green innovation in an increasingly digitalized world.

Originality/value
This study offers invaluable theoretical insights and practical pathways for policymakers and decision-makers, providing tailored strategies to promote green innovation. By understanding the complex interactions between digitalization and other factors, decision-makers can better leverage digitalization for sustainable development and environmental protection.