The impact of regulation and policy on radical eco-innovation The need for a new understanding

摘要

Purpose - This paper aims to review how current policy instruments drive (or not) environmentalrninnovation and, by doing so, to reinvestigate the relationship between innovation and regulation.rnDesign/methodology/approach - A comprehensive literature review on innovation andrnenvironmental regulation created a theoretical foundation of the paper. Using the grounded theory,rna model was developed and evaluated using interviews. This is a timely topic as the new shape ofrnrecent environmental regulation appears to be fairly strict. A new model is presented to encapsulaternhighly dynamic interaction of environmental innovation and regulation to provide results that reflectrnon the present innovation behaviour and its implications.rnFindings - The model highlights various diffusion pathways that are triggered by the main threerndrivers of innovation namely government (regulation), market (competition and cost) and technologyrnwhich has the possibility of an autonomous diffusion.rnResearch limitations/implications - The empirical data are limited to 13 qualitative experts'rninterviews within industry, consultancies and governmental departments.rnPractical implications - The suggested model is particularly useful for policy makers to betterrnunderstand the innovation dynamics and its diffusion pathways to design smarter regulations thatrnincentivise rather than force organisations to comply with regulation.rnOriginality/value - The paper shows how regulation drives (or not) innovation and how variousrndiffusion pathways can be used by external stakeholders to direct and promote innovation.