This dissertation investigated three key hypotheses. Firstly, it suggests that non-green production capabilities significantly contribute to the spillover of production capabilities into green sectors. Secondly, it proposes that the spillover of production capabilities from the green sectors follows a path-defying evolution pattern. In contrast, those from the non-green sectors adhere to a path-dependent pattern. Thirdly, it proposes that technological innovation has a positive and significant effect on the spillover of existing non-green production capabilities into green sectors but no significant effect on the spillover of production capabilities between green sectors. The analysis uses a novel network science methodology, the 'Green Sector Space,' statistical and network analysis techniques, and Partial Least Square Structural Equation Modeling to test these hypotheses. It first studies the evolution of green production capabilities for 226 countries between 2003 and 2015 to identify the primary sectors dominating the spillover of production capabilities. It also investigates the pattern observed in the evolution of green production capabilities in the different economic classifications. Finally, focusing on 72 developing
countries, it examines the effect of technological innovation on the production capabilities spillover within their economic sectors. The findings highlight significant disparities in green production capabilities in developing economies compared to other economic classifications. Additionally, the significant and dominant role of non-green sectors in driving the spillover of
production capabilities into countries' green sectors, with a significantly higher dominance observed in developing countries. Finally, the results underscore technological innovation's significant and positive effect on the spillover of production capabilities from non-green to green sectors in developing countries, which exhibits a path-dependent evolution pattern. Conversely, it does not significantly affect the spillover between the green sectors. The analysis recommends interventions in developing economies that rely heavily on non-green sectors to leverage technological innovations to diversify their green production capabilities and accelerate green growth.
Ivan Garibay, Committee Chair.
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