2013
DOI: 10.1007/s10640-013-9705-4
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Does Foreign Environmental Policy Influence Domestic Innovation? Evidence from the Wind Industry

Abstract: This paper analyses the relative influence of domestic and foreign demand--pull policies in wind power across OECD countries on the rate of innovation in this technology. We use annual wind power generation to capture the stringency of the portfolio of demand--pull policies in place (e.g., guaranteed tariffs, investment and production tax credits), and patent data as an indicator of innovation activity. We find that wind technology improvements respond positively to policies both home and abroad, but the margi… Show more

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Cited by 143 publications
(82 citation statements)
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“…Peters, Schneider, Griesshaber, and Hoffmann () find that demand‐pull policies in foreign countries positively affect domestic patenting in photovoltaic energy sector in 15 OECD countries in 1978–2005. In a similar vein, Dechezleprêtre and Glachant () observe that domestic environmental innovation performance is positively correlated with foreign demand‐pull policies promoting wind power in the case of 28 OECD countries over 1994–2005, while there appear to be no detectable effects of foreign supply‐push policies.…”
Section: Background Literaturementioning
confidence: 81%
“…Peters, Schneider, Griesshaber, and Hoffmann () find that demand‐pull policies in foreign countries positively affect domestic patenting in photovoltaic energy sector in 15 OECD countries in 1978–2005. In a similar vein, Dechezleprêtre and Glachant () observe that domestic environmental innovation performance is positively correlated with foreign demand‐pull policies promoting wind power in the case of 28 OECD countries over 1994–2005, while there appear to be no detectable effects of foreign supply‐push policies.…”
Section: Background Literaturementioning
confidence: 81%
“…). Other studies justified the use public R&D expenditures at year t to explain innovation in the same year, through the use of tax credits on private R&D expenditures, which are received by companies once expenditures have been incurred (Dechezleprêtre and Glachant ). In the present analysis, a one‐year lag and contemporaneous public R&D were included, both turning out to carry a significant contribution to RET patenting in Italy.…”
Section: Methodology Results and Discussionmentioning
confidence: 99%
“…), as wind technology has become more mature and closer to being able to compete with fossil fuels than other renewable sources, such as solar or ocean energy. Renewable energy patenting activities are driven both by domestic and foreign environmental regulations (Dechezleprêtre and Glachant ) and by international legitimacy (i.e., ratification of the Kyoto Protocol). Consequently, knowledge creation in the field of RET was described as a borderless phenomenon in which inventors increase their innovation effort in response to national policies.…”
Section: Introductionmentioning
confidence: 99%
“…To measure the development of ICT, this paper employs a patent-based indicator that is widely used in recent studies on technological innovation [39,40]. For a specific technology domain, the activity of a patent application typically indicates marginal improvements in some technological characteristics over the existing technology.…”
Section: Measurement Of Ict Development: a Patent Approachmentioning
confidence: 99%