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The geography of environmental innovation: a critical review and agenda for future research

Author

Listed:
  • Sebastian Losacker

    (Justus Liebig University Giessen
    Lund University)

  • Hendrik Hansmeier

    (Fraunhofer Institute for Systems and Innovation Research ISI
    Leibniz University Hannover)

  • Jens Horbach

    (University of Applied Sciences Augsburg)

  • Ingo Liefner

    (Leibniz University Hannover)

Abstract

This article provides a critical literature review on the regional determinants of environmental innovation. The analysis of the relevant literature on supply-side factors, demand-side factors, and institutional factors reveals the importance of regional determinants in green technology development. Specifically, regional R&D collaborations, university-industry collaborations, and technological relatedness have positive effects on innovation activities in green domains. On the demand side, regional environmental awareness and demonstration effects play a pivotal role in the emergence and diffusion of environmental innovations. Environmental regulations also induce environmental innovation, however, there is only limited evidence at the regional level. Our literature review has informed the development of an agenda for future research, which suggests three avenues for further investigation. Firstly, we recommend abandoning the simple green vs. non-green dichotomy and conducting more technology-sensitive studies on the determinants of environmental innovation. Secondly, we call for a more sophisticated and critical engagement with regional institutions, with a focus on both formal and informal institutions. Lastly, we propose a demand-side turn in research on the regional determinants of environmental innovation in order to better understand their diffusion across space. Overall, our findings suggest that policymakers need to adopt a more nuanced and comprehensive approach to eco-innovation policy, one that considers the spatial and multi-level governance challenges and promotes inclusive regional development.

Suggested Citation

  • Sebastian Losacker & Hendrik Hansmeier & Jens Horbach & Ingo Liefner, 2023. "The geography of environmental innovation: a critical review and agenda for future research," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 43(2), pages 291-316, August.
    • Handle: RePEc:spr:jahrfr:v:43:y:2023:i:2:d:10.1007_s10037-023-00193-6
    DOI: 10.1007/s10037-023-00193-6
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    Cited by:

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    2. Fischer, Lennart & Losacker, Sebastian & Wydra, Sven, 2024. "National specialization and diversification in the bioeconomy: Insights from biobased technologies in chemical and pharmaceutical sectors," Technology in Society, Elsevier, vol. 76(C).
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    4. Fusillo, Fabrizio & Orsatti, Gianluca & Scandura, Alessandra, 2024. "Public Green Demand and Green Innovation: Evidence from US Firms," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202407, University of Turin.
    5. Stefano Basilico & Nils Grashof, 2023. "The transition of brown regions: A matter of timing?," Jena Economics Research Papers 2023-003, Friedrich-Schiller-University Jena.

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    More about this item

    Keywords

    Environmental innovation; Geography of innovation; Sustainability transitions; Regional development; Green technology;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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