The Performance Effect of Environmental Innovations

While recent literature has focused on explaining the determinants of green innovations, it is not well understood how such innovations affect performance. To analyse the relationship between green innovation and performance, new industry-level panel data were exploited: these include 12 OECD countries, the whole manufacturing sector and a period of 30 years. The results show that green inventions are U-shape related to performance. However, the turning point is quite high and hence only relevant for a few industries. This indicates that - given the current level of green promotion - market incentives alone are not sufficient to allow the green invention activities of industries to rise considerably.

[1]  C. Rammer,et al.  Environmental Innovations and Firm Profitability: Unmasking the Porter Hypothesis , 2014 .

[2]  Giovanni Marin,et al.  Do eco-innovations harm productivity growth through crowding out? Results of an extended CDM model for Italy , 2014 .

[3]  D. Helm.  The Carbon Crunch , 2012 .

[4]  Paul Lanoie,et al.  Environmental Policy, Innovation and Performance: New Insights on the Porter Hypothesis , 2011 .

[5]  Bronwyn H Hall,et al.  Innovation and Diffusion of Clean/Green Technology: Can Patent Commons Help? , 2011 .

[6]  K. Frenken,et al.  Models in evolutionary economics and environmental policy: Towards an evolutionary environmental economics , 2009 .

[7]  David Popp,et al.  Energy, the Environment, and Technological Change , 2009 .

[8]  C. A. Benavides-Velasco,et al.  Innovative competence, exploration and exploitation: The influence of technological diversification , 2008 .

[9]  D. Popp,et al.  Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts , 2008 .

[10]  Scott L. Newbert.  Empirical research on the resource‐based view of the firm: an assessment and suggestions for future research , 2007 .

[11]  David Popp,et al.  Innovation in climate policy models: Implementing lessons from the economics of R&D , 2006 .

[12]  J. Horbach.  Determinants of Environmental Innovation - New Evidence from German Panel Data Sources , 2006 .

[13]  K. Rennings,et al.  Lead markets and regulation: a framework for analyzing the international diffusion of environmental innovations , 2005 .

[14]  Dominique Guellec,et al.  From R&D to Productivity Growth: Do the Institutional Settings and the Source of Funds of R&D Matter? , 2004 .

[15]  P. Howitt,et al.  Competition and Innovation: an Inverted-U Relationship , 2005 .

[16]  D. Popp.  Lessons from Patents: Using Patents to Measure Technological Change in Environmental Models , 2003 .

[17]  Smita B. Brunnermeier,et al.  Determinants of environmental innovation in US manufacturing industries , 2003 .

[18]  Erwin Danneels.  The dynamics of product innovation and firm competences , 2002 .

[19]  John Van Reenen,et al.  Patents, Real Options and Firm Performance , 2002 .

[20]  J. Barney,et al.  The resource-based view of the firm: Ten years after 1991 , 2001 .

[21]  David Popp,et al.  Induced Innovation and Energy Prices , 2001 .

[22]  Bruno Crépon,et al.  Research, Innovation, and Productivity: an Econometric Analysis at the Firm Level , 1998 .

[23]  A. Jaffe,et al.  The Induced Innovation Hypothesis and Energy-Saving Technological Change , 1998 .

[24]  D. Teece,et al.  DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT , 1997 .

[25]  Adam B. Jaffe,et al.  Environmental Regulation and Innovation: A Panel Data Study , 1996, Review of Economics and Statistics.

[26]  Charles P. Himmelberg,et al.  R&D and internal finance: a panel study of small firms in high-tech industries , 1994 .

[27]  F. Malerba.  Learning by Firms and Incremental Technical Change , 1992 .

[28]  Bronwyn H Hall.  Investment and Research and Development at the Firm Level: Does the Source of Financing Matter? , 1992 .

[29]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[30]  G. Huber.  Organizational Learning: The Contributing Processes and the Literatures , 1991 .

[31]  J. March.  Exploration and exploitation in organizational learning , 1991, STUDI ORGANIZZATIVI.

[32]  Z. Griliches.  Patent Statistics as Economic Indicators: a Survey , 1990 .

[33]  Z. Griliches,et al.  Industry Effects and Appropriability Measures in the Stock Markets Valuation of R&D and Patents , 1987 .

[34]  B. Wernerfelt,et al.  A Resource-Based View of the Firm , 1984 .

[35]  P. Dasgupta,et al.  Industrial Structure and the Nature of Innovative Activity , 1980 .

[36]  E. Penrose.  The theory of the growth of the firm twenty-five years after , 1960 .

[37]  P. Aghion,et al.  Cold start for the green innovation machine , 2009 .

[38]  Rainer Frietsch,et al.  Linking Technology Areas to Industrial Sectors , 2003 .

[39]  Paulo N. Figueiredo,et al.  Does technological learning pay off? Inter-firm differences in technological capability-accumulation paths and operational performance improvement , 2002 .

[40]  G. Noci,et al.  Managing "green" product innovation in small firms , 1999 .

[41]  I. Cockburn,et al.  Scale, scope, and spillovers: the determinants of research productivity in drug discovery. , 1996, The Rand journal of economics.

[42]  B. Wernerfelt,et al.  The resource‐based view of the firm: Ten years after , 1995 .

[43]  K. Arrow.  Economic Welfare and the Allocation of Resources for Invention , 1962 .