Abstract: The development of renewable energy is an important path to achieve carbon peaking and carbon neutrality, while technological innovation is the biggest obstacle the development of renewable energy is faced. The findings of this empirical analysis using EU data from 1991 to 2019 show that there is a significant spatial spillover effect in the technology innovation of EU renewable energy, which is mainly achieved through the promotion of government policies and financial development. The results of the spatial correlation analysis show that this spatial effect has been more pronounced since 1999. The results of the regression analysis with spatial models further show that government policies have significant heterogeneous characteristics for renewable energy innovation, which may mean that policies that indirectly lead to innovation through demand and weaken market mechanisms will be difficult to sustain, and it will become crucial to build a more market-oriented policy support mechanism with direct-driving effect. In addition, the EU’s well-developed direct financing market has a significant positive impact on renewable energy innovation, while the indirect financing market can only play a limited role. This shows that the direct financing mechanisms such as green bonds and carbon financial markets are effective means to promote renewable energy innovation. China should further construct a clearer and more explicit common vision of energy and climate, strengthen the inter-provincial cooperation and coordinated development, and create a development pattern of renewable energy which can be beneficial to all.

Key words: technology innovation, renewable energy, spatial spillover effect, carbon neutrality