This paper examines the relationship between digital and green innovation and the internationalization of Italian firms. Relying on survey data from a sample of 2,500 Italian manufacturing firms in 2023, this research examines the role of these innovations in enhancing firms' ability to export and expand their export volumes. We find that the effect on export capabilities rises under two conditions: investing in a large number of technologies (digital intensity) and complementing fixed capital formation with training activities. Importantly, the combined effect (i.e., digital and green innovation) amplifies firms' export performance, underscoring the significance of integrating technological and sustainable strategies in firms’ internationalization efforts. These insights have managerial implications for the best business strategy to adopt within the firms and policy implications highlighting the importance of simultaneously supporting digital and green innovation initiatives.

Read the document