Eco‐Innovation, Economic Complexity, and Sustainability: A Bibliometric and Systematic Literature Review

This study systematizes the literature on eco‐innovation and economic complexity, aiming to understand how the sophistication of productive structures shapes countries' capacity to develop environmentally responsible innovations, and how eco‐innovation may, in turn, influence productive sophistication. Accordingly, the study (1) maps predominant conceptual and methodological approaches; (2) synthesizes empirical evidence on the effects of productive complexity on eco‐innovation, including potential bidirectional dynamics; (3) examines the regulatory, policy, and incentive frameworks conditioning this relationship; (4) identifies the technological, institutional, and human capabilities underpinning eco‐innovation and productive upgrading; (5) investigates the role of international integration and cross‐country cooperation; and (6) assesses the environmental outcomes associated with complexity trajectories and green innovation. Methodologically, the analysis combines a bibliometric analysis with a systematic literature review encompassing 79 peer‐reviewed articles published between 2014 and 2024. The results indicate consistent evidence that economic complexity positively influences eco‐innovation, while the reverse mechanism—eco‐innovation fostering productive sophistication—remains underexplored, with only one study explicitly addressing bidirectionality. The literature also shows that eco‐innovation contributes to reducing CO 2 emissions, although findings on the environmental effects of economic complexity are mixed. Institutional quality, productive capabilities, and global linkages emerge as central drivers of both higher complexity and improved environmental performance. Although patents are widely used as proxies for eco‐innovation, few studies treat them as the primary unit of analysis, and comparative work across countries or between green and conventional innovation remains limited. Overall, the study identifies substantial conceptual and empirical gaps and underscores the need for more integrated and interdisciplinary research to advance understanding of the interplay between eco‐innovation, productive sophistication, and sustainability.