Determinants of Environmental Innovation - New Evidence from German Panel Data Sources

Horbach, Jens

doi:10.2139/ssrn.879707

Cited by 329 publications

(695 citation statements)

References 19 publications

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“…Against this background, the focus of this paper is especially on the regulatory push/pull effect which has been confirmed by several case studies and surveys, the latter including Green (1994), Cleff and Rennings (1999), Rennings and Zwick (2002), Brunnermeier and Cohen (2003) and Horbach (2008). Recently, Popp (2006) found evidence in a study with patent data from the United States, Japan and Germany that the innovation decisions of firms were mainly driven by national regulation, not by regulation abroad.…”

Section: The Impact Of Environmental Regulation On Innovationmentioning

confidence: 76%

“…Concerning the decision of where to locate R&D units, supply factors such as the access to local scientific and technological resources have gained increasing importance over the past years (Horbach, 2008). And also company specific factors influence the innovation decision, such as knowledge transfer mechanisms and involvement in networks (Rehfeld et al, 2007).…”

Section: The Impact Of Environmental Regulation On Innovationmentioning

confidence: 99%

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The Impact of Regulation-Driven Environmental Innovation on Innovation Success and Firm Performance

Rennings

Rammer

2010

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp10065.pdf Non technical summaryIt is widely agreed in the literature that environmental innovation is not only determined by market pull and technology push factors but also depends on regulatory incentives. There is an ongoing debate on how regulation-driven environmental innovations influence innovation and firm success. Can firms succeed in the market with innovations stimulated by environmental regulation, i.e. can they achieve a similar market success compared to innovations triggered by market demand or by new technological developments?The positive answer is known as the Porter hypothesis which calls for a certain strictness of environmental policy. In general, the Porter hypothesis suggests that strict environmental policy spurs "innovation offsets". Increases in resource efficiency lead to higher economic efficiency, at least in the long run. These arguments are however still based on case studies. We want to validate the hypothesis by analysing regulation-driven environmental innovations.The impact of environmental innovations on firm performance is ambiguous. On the one hand, regulatory-driven environmental innovation may impose additional costs to firms and lower their profits. On the other hand, eco-innovators could profit from lower uncertainty in innovation due to regulatory standards and demand-generating effects. We analyse (a) whether regulation-driven environmental innovation generate similar innovation success compared to other types of product and process innovation, and (b) whether regulation-driven environmental innovation increase or decrease firm success (as measured by return on sales).Using firm data from the German innovation survey (the "Mannheim Innovation Panel"), we find that both product and process innovations driven by environmental regulation generate similar success in terms of sales with new products and cost savings as other innovations do. However, we find different effects when looking on the field of regulation that triggered innovations. Regulations in favour of sustainable mobility contribute to higher sales with market novelties while regulations in the field of water management lower this type of innovation success. With regard to a firm's price-cost margin, new processes implemented in order to comply with environmental regulation requirements lower profitability, indicating higher costs for this type of innovation which cannot ...

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Section: The Impact Of Environmental Regulation On Innovationmentioning

confidence: 76%

Section: The Impact Of Environmental Regulation On Innovationmentioning

confidence: 99%

The Impact of Regulation-Driven Environmental Innovation on Innovation Success and Firm Performance

Rennings

Rammer

2010

SSRN Journal

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“…Our definition of (corporate) technological environmental innovations (in the same manner as, e.g., Frondel et al, 2007Frondel et al, , 2008Wagner, 2007Wagner, , 2008Horbach, 2008) is based on the conventional understanding of technological innovations in general as defined in the Oslo-Manual of the OECD and Eurostat (1997) which distinguishes between product and process innovations. This definition considers three aspects of a technological innovation.…”

Section: Environmental Product and Process Innovationsmentioning

confidence: 99%

“…These measures are considered as environmental product and process innovations. Horbach (2008) analyzes the establishment panel of the Institute for Employment…”

Section: Environmental Product and Process Innovationsmentioning

confidence: 99%

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Environmental management systems and technological environmental innovations: Exploring the causal relationship

2009

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Role of entrepreneurial opportunity identification factors in the eco‐innovation of agribusiness

2020

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Agribusiness is central to human life, and eco-innovation is the key driving force behind economic and ecological growth. However, in developing countries, setting economic and environmental goals remains challenging for entrepreneurs. This article focuses on the perceived role of entrepreneurial opportunity identification (EOI) factors on eco-innovation in Tunisian agribusiness. A combination of external and sustainable factors was used to create an integrated model to assess the potential of EOI for stimulating eco-innovation and sustainable development. Structural equation modelling was used to explore the positive effect of these factors and investigate the mediating role of entrepreneurial alertness. The findings confirm (a) the positive influence of EOI factors on eco-innovation, which serves as an innovative way for entrepreneurs to gain profits; (b) entrepreneurial alertness constitutes the most important factor for adopting eco-innovation; (c) entrepreneurial alertness plays a mediating role between (1) prior knowledge and (2) social networks and eco-innovation.

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Determinants of Environmental Innovation - New Evidence from German Panel Data Sources

Cited by 329 publications

References 19 publications

The Impact of Regulation-Driven Environmental Innovation on Innovation Success and Firm Performance

The Impact of Regulation-Driven Environmental Innovation on Innovation Success and Firm Performance

Environmental management systems and technological environmental innovations: Exploring the causal relationship

Role of entrepreneurial opportunity identification factors in the eco‐innovation of agribusiness

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