Science and innovation are essential to addressing pressing environmental challenges such as climate change, pollution and biodiversity loss. This publication is a unique reference guide providing comprehensive evidence for policymakers, statisticians and researchers on how STI contributes to energy and green transitions and sustainable growth. Drawing on a wide range of existing and original, newly developed indicators and data sources, it maps key concepts, highlights measurement gaps, and explores the role of science and innovation in enabling the emergence and widespread adoption of environmentally sound technologies, informing public policy and societal engagement. The report also offers recommendations for improving the systematic measurement of STI’s contribution to sustainability across OECD countries.
Measuring Science and Innovation for Sustainable Growth
Abstract
Executive summary
The transformational power of science, technology and innovation (STI) is necessary to extend economic wellbeing while addressing major global environmental challenges such as climate change, pollution and biodiversity loss. To harness and direct this power effectively, however, policymakers require fit-for-purpose measures that capture the multifaceted contribution of science and innovation, the role played by different actors and the impact of relevant policies. Measuring Science and Innovation for Sustainable Growth provides new and comprehensive evidence on the role of science and innovation for resource and environmental sustainability. It draws on existing statistics and newly developed databases, indicators and analysis to map key trends and structural issues, comparing the capabilities of countries in this important domain to inform decision making. The following insights emerge from the gathered evidence:
Cost reductions enabled by technological innovation have accelerated the uptake of new technologies across key sectors. In 2023, for instance, electricity from large-scale solar PV was 56% cheaper than from fossil fuels—having been over four times more expensive in 2010. The global electric car fleet reached nearly 58 million by the end of 2024, more than triple its size in 2021.
In the median OECD country, over 40% of innovative firms introduced at least one environmentally beneficial innovation in the previous three years.
Environmental technology startups have attracted 17% of total venture capital (VC) funding, and account for a growing share of national startup populations in three out of four surveyed countries.
New indicators show that nearly 28% of scientific publications are relevant to energy and environmental societal goals.
International collaboration is significantly more prevalent in energy and environmental science than in other fields.
Climate change mitigation and adaptation patent filings build more directly on scientific knowledge than high-carbon ones, citing nearly six times as many peer-reviewed articles. Key cited disciplines include engineering, chemistry, and materials science, with computer science also playing a greater role in low-carbon than in high-carbon patents.
Start-ups in energy and sustainability are the second most likely to be founded by PhD holders (16%) - underscoring science’s role in entrepreneurial activity.
China is now the world’s largest contributor to scientific publications in energy journals and accounts for 40% of the 10% most cited environment- and energy-related publications.
China’s high-quality patent filings in environmental technologies grew more than sixfold between 2010 and 2020, while growth in the United States and the EU remained below 20%. Nearly a quarter of China’s international patent filings now relate to environmental outcomes, compared to just 10% in the United States.
The share of venture capital channeled into environment-related start-ups grew by 25 percentage points in China between 2010 and 2022, compared to just 6 percentage points in the EU and stagnation in the wider OECD.
China also dominates clean technology manufacturing and leads in exports of environmental goods, having gone from laggard to leader over three decades.
Technology-specific support for low-carbon innovation declined across the OECD between 2012 and 2019, even as environmental policy stringency increased.
Between the early 1980s and 2006, government budgets for R&D dedicated to energy and the environment have remained largely flat in real terms. Relevant R&D budgets in the OECD area grew by 29% in 2023 and stood at 7% on average that year. Less than 5% is dedicated to low-carbon energy research, development and demonstration (RD&D).
Recovery spending channeled into innovation with environmental objectives post-COVID was heavily weighted toward technology deployment, with just 6.5% allocated to RD&D.
Analysis of R&D funding portfolios for governmental funding bodies shows that energy and environmental goals accounted for approximately 20% of funding in 2023, representing nearly USD 40 billion.
New analysis shows that direct public funding for business R&D is positively associated with the uptake of innovations with environmental benefits, particularly those that reduce CO₂ emissions, pollution, or resource intensity. Environment-related patenting is also more common among firms receiving direct support.
R&D tax incentives, by contrast, show no clear effect in EU countries on environmental outcomes or the composition of private R&D. Firms cite market demand, reputation, regulations, and cost pressures as key motivators for pursuing environmental innovation.
Environmental concerns remain high on the public agenda, especially in the EU, even as safety and economic concerns loom large. The percentage of respondents who agree or strongly agree that environmental issues will be resolved primarily through technological progress is the highest in Israel (62%), followed by Sweden (48%) and United States (47%).
Trust in climate scientists is strong across the world and there is support for climate action - in particular in the form of low-carbon technology subsidies.
Carbon taxes are more acceptable when linked to clean technology investments, indicating public appetite for coherent, science-informed policy solutions.
Major evidence gaps hamper decision making at the intersection of science, innovation, and sustainable growth. Governments can respond by adopting a three-pillar measurement agenda:
Pillar 1: Build the foundations Leverage diverse data sources and methods with multi-purpose planning; align measurement efforts toward environmental science and innovation; and foster shared ownership and partnerships for effective data use.
Pillar 2: Address evidence gaps Capture the broad contributions of upstream research; track green technology adoption and the reach of environmental innovation beyond business; monitor public support beyond R&D; assess systemic STI roles in the economy and environment; and account for STI’s own environmental footprint.
Pillar 3: Measure impacts Develop systems of indicators tailored to policy needs and embed evaluation in the design and implementation of innovation policy.
