The green transition is one of the most transformative developments of the 21st century, reshaping global production, consumption, and innovation systems.
This paper investigates how different models of capitalism specialize within the green value chain, conceptualized as four key segments: innovation, manufacturing, business services, and deployment. By integrating insights from comparative political economy (CPE) on varieties of capitalism, growth models, and growth regimes, we develop expectations about how supply- and demand-side conditions influence national specialization and skill profiles. Using descriptive statistics and principal component analysis (PCA), we reveal a sharp divide between ‘green leaders’ and ‘green laggards’ across Europe, with Nordic and Continental European countries excelling in green specialization. Our findings highlight the pivotal role of high-level Science, Technology, Engineering and Mathematics (STEM) skills in driving green innovation and manufacturing. This study advances theoretical and empirical understanding of how national institutions shape distinct pathways in the global green transition.
Donato Di Carlo is an Assistant Professor in Political Economy at the LSE European Institute. His academic research focuses on comparative political economy and public policy issues, with a specific focus on growth models, industrial policy, economic regulation, EU integration, comparative industrial relations and wage-setting systems. Among others, his academic work has appeared in journals such as New Political Economy, Perspectives on Politics, Politics & Society, Regulation & Governance, Socio-economic Review.