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The Determinants of Environmental Innovations and Patenting: Germany Reconsidered

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  • Tilmann Rave

    ()

  • Frank Goetzke
  • Mario Larch

Abstract

This paper provides new evidence on the objectives and determinants of different typesof innovations and patents, environmental as opposed to other innovations and patents,and different variants of environmental innovations and patents. We investigate howfirm-specific and sector-specific driving forces differ by innovation type. Moreover, weoutline the functions that different innovation types have for environmental and innovationpolicies. We find that eco-innovators put relatively more attention to cost reduction, inparticular the reduction of energy and resource costs, compared to other innovators.Cost pressure and reliable, predictable and strict framework conditions of environmentalpolicy turns out to be an important driver for more incremental, firm-level eco-innovationscontributing to the diffusion of principally known technologies among firms. By contrast,more far-reaching patented eco-innovations are driven by the opportunity to create newmarkets and by government subsidies.

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Bibliographic Info

Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 97.

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Date of creation: 2011
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Handle: RePEc:ces:ifowps:_97

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Keywords: Environmental innovation; patent; discrete choice models;

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  1. Rehfeld, Katharina-Maria & Rennings, Klaus & Ziegler, Andreas, 2004. "Integrated Product Policy and Environmental Product Innovations: An Empirical Analysis," ZEW Discussion Papers 04-71, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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  3. Rennings, Klaus & Ziegler, Andreas & Ankele, Kathrin & Hoffmann, Esther, 2006. "The influence of different characteristics of the EU environmental management and auditing scheme on technical environmental innovations and economic performance," Ecological Economics, Elsevier, vol. 57(1), pages 45-59, April.
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  6. Petra Moser, 2007. "Why Don't Inventors Patent?," NBER Working Papers 13294, National Bureau of Economic Research, Inc.
  7. Frondel, Manuel & Horbach, Jens & Rennings, Klaus, 2004. "End-of-Pipe or Cleaner Production? An Empirical Comparison of Environmental Innovation Decisions Across OECD Countries," ZEW Discussion Papers 04-82, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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  10. Requate, Till, 2005. "Dynamic incentives by environmental policy instruments--a survey," Ecological Economics, Elsevier, vol. 54(2-3), pages 175-195, August.
  11. Popp, David, 2006. "International innovation and diffusion of air pollution control technologies: the effects of NOX and SO2 regulation in the US, Japan, and Germany," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 46-71, January.
  12. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
  13. Wagner, Marcus, 2007. "On the relationship between environmental management, environmental innovation and patenting: Evidence from German manufacturing firms," Research Policy, Elsevier, vol. 36(10), pages 1587-1602, December.
  14. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
  15. Geroski, P A & Walters, C F, 1995. "Innovative Activity over the Business Cycle," Economic Journal, Royal Economic Society, vol. 105(431), pages 916-28, July.
  16. ,, 2002. "Symposium on explanations and social ontology: introduction," Economics and Philosophy, Cambridge University Press, vol. 18(02), pages 209-210, October.
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