Technological Innovation, Public Policies, and Renewable Energy Production: Evidence from EU Countries and Turkiye

Technological innovation is an issue that countries attach importance to for competitive advantage today. The cost of establishing the infrastructure required for technological innovation requires the support of the state. Support is provided in this area through public policies. When the depletion of fossil fuel resources is added to the environmental problems caused by global warming in the field of energy, the need for alternative energy sources increases its importance day by day. In this respect, renewable energy sources are both environmentally friendly and there is no problem of depletion of resources. In this area, encouraging public policies are implemented. Since the relationship between technological innovation and renewable energy can be determined statistically and a single policy that supports both areas can be very attractive for governments, this area has been focused on in the study. The main aim of the study is to provide policy-relevant insights into public policies that can simultaneously support technological innovation and renewable energy production in EU countries and Türkiye. What distinguishes this study from the existing literature is the use of the Global Innovation Index and its sub-components as a comprehensive measure of innovation, rather than relying on single indicators such as patents or R&D expenditures. By capturing the multidimensional nature of innovation, the analysis provides a more robust assessment of its relationship with renewable energy production. The empirical results indicate that innovation dimensions related to infrastructure and market development have a positive and statistically significant effect on renewable energy production, while public policy indicators also exhibit a supportive role. These findings offer relevant implications for public finance and energy policy.