Environmental Innovations, Local Networks and Internationalization

Abstract

This paper investigates the forces correlated with environmental innovations (EIs) introduced by firms in local production systems (LPS). The role of inter-firm network relationships, agglomeration economies and internationalization strategies is jointly analysed for a sample of 555 firms in the EmiliaRomagna (ER) region (North-East Italy). Cooperating with a certain kind of local actors-i.e. suppliers and universities-is the most important EI driver for the investigated firms, along with their training coverage and their adoption of information and communication technologies. The role of agglomeration economies is instead less clear-cut. They spur EIs only in the presence of established LPS, with idiosyncratic sector specialization, while conversely they act as EI barriers. Networking effects and agglomeration economies are instead found to strongly promote the adoption of EIs by multinational firms, thus highlighting the importance of local -global interactions. Interesting specifications for these results are found for particular kinds of EIs, in such fields as CO 2 abatement and ISO labelling, generally extending the analysis of EI drivers by joining local and international factors. In addition, the role of regulatory sector factors confirms the induced innovation hypothesis and provides a robustness check to our results.

Is Strategic Proactivity a Driver of an Environmental Strategy? Effects of Innovation and Internationalization Leadership

“…According to this idea, internationalised firms adopt convenient positions, operating wherever legislation is less demanding and there is minimal stakeholder pressure. According to this point of view, international trade and foreign direct investments are assumed to be channels through which firms exploit asymmetries in international environmental regulations [48]. However, others believe that firms with a global presence develop environmental practices, policies and standards adapted to the most demanding legislation [49,50].…”

The Role of Technology Spillovers in the Process of Water Pollution Abatement for Large International Firms

“…The endogenous nature of market structures associated with the dynamics of innovation, the asymmetries among firms in technological capabilities, and the nature of diffusion processes have been deeply investigated [3], but now the attention paid to environmental issues requires a stronger complementarity with more sustainable production, based on new, cleaner alternatives [4]. Environmental innovations represent a fundamental role in the process of integration between competitiveness and sustainability [5][6][7][8].…”

The Pursuit of External Knowledge in Eco-Innovation. Analysis of the Agri-Food Sector in Spain

“…These two questions also affect external aspects, as noted by Cainelli et al (2012), whereby large firms usually cooperate more frequently with "qualified" agents such as universities or suppliers with expertise in environmental matters. This opportunity is only exploited by large firms, and benefits the development of improved products which, along with the assimilation capacity enabled by employee training, enhance results.…”

“…Horbach (2008) observes positive results from collaboration, and states that eco-innovation processes involving collaboration with universities or research centers have been positive in terms of the use of materials and energy. Cainelli et al (2012) argue that cooperation should be undertaken alongside actors with expertise in environmental solutions in order to yield positive results, since cooperation has a dual purpose: training and process modernization. Based on these studies, Del Rio et al (2016) refer to the greater intensity and frequency of this cooperation when the intention is to explore new markets or create new products in the industrial sectors.…”