Abstract
This paper examines the relationship between the diffusion of digital and net zero innovations. Building on the diffusion of innovation theory, we propose two mechanisms, whereby complementarities-in-use between digital and net zero innovations arise, allowing digital affordances in the net zero domain to unfold. Drawing on a novel survey data of around 1,000 businesses representative of the UK SMEs population conducted in 2020, we explore how categories of digital adopters relate to categories of adopters of net zero technologies and organisational innovations. We find that the probability of belonging to the least advanced category of net zero adoption - late majority - decreases with digital innovativeness. On the contrary, the probability of belonging to more advanced net zero categories - early majority, early adopters, and innovators - increases with more advanced levels of digital innovativeness. These findings have important policy implications suggesting that business support schemes designed to facilitate digital transition may also be beneficial for achieving net zero, which in turn can increase productivity.