Industrial robots, national AI policies and green innovation: evidence from 41 UNIDO industry data

We examine how industrial robots influence green innovation in 41 countries from 1995 to 2019. Results show that robots significantly boost green innovation by attracting FDI, enhancing productivity and R&D, and improving industrial competitiveness. National AI policies, especially enablers and incentives, amplify this effect, with stronger impacts in countries with lower R&D and competitiveness. The effect is also more pronounced in nations with lower income, weaker digital infrastructure, and higher environmental awareness. Using tariff changes as an instrument, we find evidence suggesting a causal relationship. Our findings highlight the green innovation potential of emerging economies through industrial robotics.