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Competitive Pressure and Diversification into Green R&D

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  • Tobias Stucki

    (University of Jyväskylä
    Bern University of Applied Sciences)

  • Martin Woerter

    (ETH Zurich, Swiss Economic Institute (KOF))

Abstract

Based on representative firm-level survey data for Austria, Germany, and Switzerland, we investigate the relationship between quick obsolescence of products, unpredictable technological development, and easy substitution of products and the probability to diversify into green R&D. We find that product obsolescence and technological uncertainty are positively related with green R&D diversification. These types of competition are usually positively related with low barriers to market entry. Hence, policies that support open markets should stimulate diversification into green R&D.

Suggested Citation

  • Tobias Stucki & Martin Woerter, 2019. "Competitive Pressure and Diversification into Green R&D," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 55(2), pages 301-325, September.
    • Handle: RePEc:kap:revind:v:55:y:2019:i:2:d:10.1007_s11151-018-9656-6
    DOI: 10.1007/s11151-018-9656-6
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