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Employment Impact Of Cleaner Production On The Firm Level: Empirical Evidence From A Survey In Five European Countries

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  • KLAUS RENNINGS

    (Centre for European Economic Research (ZEW), P.O. Box 103443, D-68034 Mannheim, Germany)

  • THOMAS ZWICK

    (Centre for European Economic Research (ZEW), P.O. Box 103443, D-68034 Mannheim, Germany)

Abstract

This paper analyses the determinants of employment reactions of firms where environmentally friendly innovations (eco-innovations) were carried out. The data stem from a telephone survey covering more than 1500 firms in five European countries that have recently introduced eco-innovations. We found that product and service innovations create more jobs than process innovations. Moreover, employment impacts differ depending on the intended goals of the innovations. If products and processes are motivated by the goal of cost reduction, they tend to reduce employment. If they are motivated by market share goals, effects can be positive or negative depending on the success of the strategy the firm is following. With respect to skill-biased technogical change, eco-innovations do not differ from other innovations. So, environmental innovations have a small but positive net effect on employment. Thus, environmental support programmes do not counteract labour market policy. A further shift from end-of-pipe technologies to cleaner production, especially towards product and service innovations, would be beneficial for the environment and create jobs.

Suggested Citation

  • Klaus Rennings & Thomas Zwick, 2002. "Employment Impact Of Cleaner Production On The Firm Level: Empirical Evidence From A Survey In Five European Countries," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 319-342.
    • Handle: RePEc:wsi:ijimxx:v:06:y:2002:i:03:n:s1363919602000604
    DOI: 10.1142/S1363919602000604
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    References listed on IDEAS

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    1. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    2. Brouwer, Erik & Kleinknecht, Alfred & Reijnen, Jeroen O N, 1993. "Employment Growth and Innovation at the Firm Level," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 153-159, May.
    3. Rottmann Horst & Ruschinski Monika, 1998. "The Labour Demand and the Innovation Behaviour of Firms / Die Arbeitsnachfrage und das Innovationsverhalten von Unternehmen: An Empirical Investigation for West German Manufacturing Firms / Eine empir," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 217(6), pages 741-752, December.
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    More about this item

    Keywords

    Cleaner production; environmental technologies; innovation; labour demand;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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