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On the growth impact of different eco-innovation business strategies

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  • Serenella Caravella

    (Roma Tre University)

  • Francesco Crespi

    (Roma Tre University
    BRICK, Collegio Carlo Alberto
    Roma Tre University)

Abstract

The paper investigates whether standard innovation and different types of eco-innovation activities have different effects on firm employment growth. Heterogeneity in terms of growth effects is analyzed by considering how the influence of different innovation strategies varies across firms grouped by their pace of growth. Relying on a sample of 3000 Italian manufacturing firms observed between 2012 and 2016, we find that innovative companies tend to grow faster than their non-innovative counterparts. However, when distinct paces of growth are taken into account, the employment growth impact of innovation will depend on the specific types of innovation strategies pursued by companies. In particular, more complex eco-innovation activities have no impact on employment growth for high-growth firms. This finding suggests that, on average, high-growth firms tend to be too small and too young to be able to expand through more complex EI strategies which, to be handled, require a wide range of cognitive, technological, and financial capabilities.

Suggested Citation

  • Serenella Caravella & Francesco Crespi, 2022. "On the growth impact of different eco-innovation business strategies," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 657-683, July.
    • Handle: RePEc:spr:epolit:v:39:y:2022:i:2:d:10.1007_s40888-022-00263-x
    DOI: 10.1007/s40888-022-00263-x
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    3. Paulius Šūmakaris & Kristina Kovaitė & Renata Korsakienė, 2023. "An Integrated Approach to Evaluating Eco-Innovation Strategies from the Perspective of Strategic Green Transformation: A Case of the Lithuanian Furniture Industry," Sustainability, MDPI, vol. 15(11), pages 1-33, June.

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    More about this item

    Keywords

    Firms’ growth; Environmental innovations; Eco-innovation modes; Cluster analysis; Quantile regressions;
    All these keywords.

    JEL classification:

    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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