Policy Article

Innovation Policy for the Transformation to Climate Neutrality


  • Peterson
  • S.
  • Semrau
  • F.O.
Publication Date

Rapid deployment and developments in green innovations are crucial for achieving climate neutrality. While market-based policy instruments are the backbone of climate policy, governmental support for research and development (R&D) complements an efficient policy mix that supports green innovations at all stages of the innovation process. Nonetheless, international R&D support has declined over the last decade. In an international comparison, Japan is at the forefront of green R&D support. Germany is also a leader in R&D support, but its market-based environmental policy stringency remains low, which undermines the importance of an adequate climate policy mix.

Kiel Institute Experts


JEL Classification
O38, Q55, Q58

Key Words

  • Green/eco-/environmental innovation
  • R&D support
  • Climate policy
  • Innovation policy