Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Seoul Center for Finance and Innovation The Leaders of the Twin Transition in Asia: Mapping Capabilities through Digital and Green Patents © 2023 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522- 2625; e-mail: pubrights@worldbank.org. World Bank Group Finance, Competitiveness and Innovation Global Practice The Leaders of the Twin Transition in Asia: Mapping Capabilities through Digital and Green Patents Seoul Center for Finance and Innovation june 2023 Acknowledgment This report was prepared by a team led by Anwar Aridi (Senior Private Sector Specialist, World Bank’s Finance Competitiveness and Innovation Global Practice), which included Pierre-Alexandre Balland (Utrecht University & Artificial and Natural Intelligence Toulouse Institute), Ron Boschma (Utrecht University and University of Stavanger) as lead authors, and Kibum Kim (Private Sector Specialist, WB FCI GP). The note benefited from the guidance of the World Bank Management, Zafer Mustafaoglu (Practice Manager) and Jason Allford (Country Manager), and from feedback and comments provided by Alvaro Gonzalez (Lead Economist, WB FCI GP), Marcio Cruz (Principal Economist, IFC), and Jonathan David Timmis (Economist, WB EAP Chief Economist Unit). Ryosun Jang (Consultant, WB) and William Shaw (Consultant, WB) edited the report. This knowledge note was made possible by a grant from the Korean Ministry of Economy and Finance, provided through the Seoul Center for Finance and Innovation and the WBG Korea Office. The Leaders of the Twin Transition in Asia: Mapping Capabilities through Digital and Green Patents 4 Contents Acknowledgment............................................................................................................4 Executive Summary.........................................................................................................6 01 Introduction.............................................................................................................9 02 The relatedness framework.......................................................................................12 03 Identifying Twin Transition Technologies and the Twin Transition Space...................... 14 04 The global evolution of the Twin Technologies........................................................... 19 4.1 Green transition technologies...............................................................................20 4.2 Digital transition technologies.............................................................................. 22 05 Performance of cities in the Twin Transition.............................................................. 26 06 Potentials of cities in East and South East Asia in Twin Transition technologies............ 34 6.1