This empirical study tests hypotheses using a questionnaire survey to explore the positive effect of green innovative capability and green relational capability on entrepreneurial opportunity recognition through the mediator, co‐innovation behavior, in Taiwanese manufacturing companies. Co‐innovation behavior functioned as a partial mediator. A total of 169 valid questionnaires were retrieved. Overall, the sample size of the green project duration of fewer than 3 years was 92 and that of the green project duration of 3 years or more group was 77. Companies implementing green projects for more than 3 years obtained considerable improvements in their green innovative capability, green relational capability, co‐innovation behavior, and entrepreneurial opportunity recognition. The findings indicate that Taiwanese manufacturing companies should cultivate their green innovative and green relational capabilities, which can enhance entrepreneurial opportunity recognition through mediation by co‐innovation behavior.