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Determinants of environmental product and process innovations: New evidence on the basis of European panel data

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  • Gutsche, Gunnar
  • Ziegler, Andreas

Abstract

This paper empirically examines the determinants of corporate environmental product and process innovations. In contrast to previous studies, we use panel data from the ASSET4 and Worldscope databases for firms from 25 European countries between 2004 and 2017. This allows us to control for unobserved heterogeneity and time effects. Our fixed and random effects estimations in binary logit models reveal the relevance of this flexible panel data analysis. The estimation results imply positive effects especially of environmental training programs for employees and implemented environmental organizational measures on environmental process innovations. Interestingly, certified environmental management systems (EMS), certified quality management systems, and market pull factors seem to play no role for environmental process innovations, but rather for environmental product innovations. The latter are additionally affected by several technological push factors. This suggests public support of such non-mandatory approaches in order to foster environmental product innovations.

Suggested Citation

  • Gutsche, Gunnar & Ziegler, Andreas, 2019. "Determinants of environmental product and process innovations: New evidence on the basis of European panel data," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203617, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc19:203617
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    More about this item

    Keywords

    Environmental product and process innovations; technological push and market pull factors; organizational measures; panel data; European firms;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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