Proceedings· Vol 25· 2026Research

Transformation from “Brown” to “Green” Economies: A Post-Schumpeterian Analysis Focusing on G-20 Countries

Horst Hanusch
Professor Emeritus, Faculty of Business and Economics
University of Augsburg
Yasushi Hara
Associate Professor, Faculty of Business Administration
Kobe University
Purpose

This study addresses the profound paradox between innovation-driven capitalist growth and planetary ecological boundaries by introducing Post-Schumpeterian Economics (PSE) to examine multi-dimensional green transformation pathways across G-20 economies.

Design/Methodology/Approach

Integrating Georgescu-Roegen's thermodynamic limits into evolutionary economic theory, we internalize climate security as a global public good. Empirically, hierarchical cluster analysis (Ward’s method) is applied across G-19 economies using open data spanning decoupling metrics, applied green technologies (renewables, electric vehicles), Y02 green patents, and green finance.

Findings

Global green transformation is structurally path-dependent and pluralistic, transcending traditional G-7 and BRICS divides. An asymmetric US-China technological duopoly dominates green frontiers, demonstrating that market-pricing mechanisms alone are insufficient without a Supervising State actively steering National Innovation Systems.

Original/Value of the Paper

PSE bridges evolutionary dynamism with ecological economics, offering policymakers an empirical typology to prevent one-size-fits-all transition failures.

Practical Implications

National governments should adopt "Supervised Positive-Sum Policies," strategically deploying public risk capital into disruptive green innovation ecosystems.

Keywords
Post-Schumpeterian EconomicsGreen TransformationNational Innovation SystemsCluster AnalysisG-20 EconomiesClimate SecuritySupervising StateDecoupling