This research examines how environmental taxation influences corporate innovation on green technologies, both cross-sector and across countries. Using panel data from OECD and non-OECD countries during 2010-2023, the study applies quantitative approaches such as correlation analysis and sectoral comparative analysis to ascertain the association between eco-tax revenue data and green patent filings. Results support the hypothesis that environmental taxation has a statistically significant positive effect on firm-level patents for green technologies, especially in the energy and manufacturing sectors. Firms with high R&D capacity are more likely to engage in green innovations in response to environmental taxes, and complementary policy instruments, such as environmental subsidies and innovation grants, reinforce this. However, the effectiveness of environmental taxes depends on factors such as firm size, industry characteristics, and regulatory quality. The study highlights the importance of aligning environmental taxation with innovation policy and building innovation capacity to promote sustainable corporate innovation. These findings have implications for policymakers and managers in designing effective environmental tax regimes and fostering a competitive edge in green markets.