It will not come as a surprise that investment from multinationals can support the acceleration of innovation and proliferation of green technology, however this report shows that such investments can increase the sustainability focus of the multi-technology corporation investors.
Using patent filing data as an indicator of innovation, this report sets out how green foreign direct investments can impact the technological focus of the investor, both in terms of the share of patents that are in green technologies and the overall number of patents filed to green technologies. This is interesting as discussion around the effect of such investments typically is focused on the recipient of the investment.
The authors of this report suggest that, while multinational enterprises can have a negative impact on the green transformation through hindering the implementation of green legislation, they may also play an important role in achieving net-zero goals through the progress resulting from green foreign direct investments.
If the world's largest MNEs (multinational enterprises) devote their innovative activities to making green technologies more efficient, affordable, and accessible, their contribution to the green transformation could be significant. As the knowledge base becomes greener, sustainability-focused technologies move to the centre of competitive strategy.
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