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The importance of regional spill-over effects for eco-innovations in German start-ups

In: Handbook on Innovation, Society and the Environment

Author

Listed:
  • Jens Horbach

Abstract

Eco-innovation activities are crucial for the mitigation of climate change and other environmental problems. Start-up firms might play an important role in this relatively new innovation field as they are predestined to realize completely new ideas compared with incumbent firms that are not willing to abandon their established innovation paths. On the other hand, start-ups have limited resources and need external regionally available inputs of knowledge. Based on data from the German IAB/ZEW Start-up Panel in combination with regional data at the NUTS 3 level, this chapter analyses the determinants of eco-innovation in start-up firms. The econometric results show that regional spill-over effects seem to be very important for eco-innovation activities of start-up firms. In regions where the existing stock of environmentally related patents is already high, the probability that a start-up firm realizes eco-innovations is significantly higher. Furthermore, eco-innovative start-ups show disproportionately greater difficulties in getting financing from external investors.

Suggested Citation

  • Jens Horbach, 2023. "The importance of regional spill-over effects for eco-innovations in German start-ups," Chapters, in: Fernando J. Díaz López & Massimiliano Mazzanti & Roberto Zoboli (ed.), Handbook on Innovation, Society and the Environment, chapter 7, pages 110-124, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20889_7
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    File URL: https://www.elgaronline.com/doi/10.4337/9781802200065.00015
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