The Performance Effect of Environmental Innovations

摘要

While recent literature has focused on explaining the determinants of greeninnovations, it is not well understood how such innovations affect performance. To analyse therelationship between green innovation and performance, new industry-level panel data wereexploited: these include 12 OECD countries, the whole manufacturing sector and a period of 30years. The results show that green inventions are U-shape related to performance. However, theturning point is quite high and hence only relevant for a few industries. This indicates that - giventhe current level of green promotion - market incentives alone are not sufficient to allow thegreen invention activities of industries to rise considerably. To verify these results and to get abetter understanding of the mechanisms in the green market, we finally made several interviewswith multinational firms that have a good understanding of what happens on the global market ofgreen innovation.