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At Home and Abroad: An Empirical Analysis of Innovation and Diffusion in Energy-Efficient Technologies

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  • Elena Verdolini

    (Fondazione Eni Enrico Mattei and Catholic University of Milan)

  • Marzio Galeotti

    (University of Milan and IEFE-Bocconi)

Abstract

This paper contributes to the induced innovation literature by extending the analysis of supply and demand determinants of innovation in energy-efficient technologies to account for international knowledge flows and spillovers. In the first part of the paper we select a sample of 38 innovating countries and we study how knowledge related to energy-efficient technologies flows across geographical and technological space. We demonstrate that higher geographical and technological distances are associated with a lower probability of knowledge flow. In the second part of the paper, we use our previous estimates to construct stocks of internal and external knowledge for a panel of 17 countries and present an econometric analysis of the supply and demand determinants of innovation accounting for international knowledge spillovers. Our results confirm the role of demand-pull effects, as proxied by energy prices, as well as that of technological opportunity, as proxied by the knowledge stocks. In particular, this paper provides evidence that spillovers between countries have a significant positive impact on further innovation in energy-efficient technologies.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2009.123.

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Date of creation: Dec 2009
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Handle: RePEc:fem:femwpa:2009.123

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Keywords: Innovation; Technology Diffusion; Knowledge Spillovers; Energy-Efficient Technologies;

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References

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  1. Wolfgang Keller, 2000. "Geographic Localization of International Technology Diffusion," NBER Working Papers 7509, National Bureau of Economic Research, Inc.
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  13. Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1998. "The Induced Innovation Hypothesis and Energy-Saving Technological Change," NBER Working Papers 6437, National Bureau of Economic Research, Inc.
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  19. repec:fth:harver:1473 is not listed on IDEAS
  20. Laura Bottazzi & Giovanni Peri, 2007. "The International Dynamics of R&D and Innovation in the Long Run and in The Short Run," Economic Journal, Royal Economic Society, vol. 117(518), pages 486-511, 03.
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Citations

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Cited by:
  1. Massimiliano Mazzanti & Anna Montini, 2010. "Embedding the drivers of emission efficiency at regional level Analyses of NAMEA data," Working Papers 201008, University of Ferrara, Department of Economics.
  2. Marius Ley, 2010. "Insights into the Determinants of Innovation of Energy Efficiency," KOF Working papers 10-266, KOF Swiss Economic Institute, ETH Zurich.
  3. Leimbach, Marian & Baumstark, Lavinia, 2010. "The impact of capital trade and technological spillovers on climate policies," Ecological Economics, Elsevier, vol. 69(12), pages 2341-2355, October.
  4. De Cian, Enrica & Tavoni, Massimo, 2012. "Do technology externalities justify restrictions on emission permit trading?," Resource and Energy Economics, Elsevier, vol. 34(4), pages 624-646.
  5. Tilmann Rave & Frank Goetzke, 2011. "Climate-friendly technologies in the mobile air-conditioning sector: A patent citation analysis," Ifo Working Paper Series Ifo Working Paper No. 99, Ifo Institute for Economic Research at the University of Munich.
  6. Braun, Frauke G & Schmidt-Ehmcke, Jens & Zloczysti, Petra, 2010. "Innovative Activity in Wind and Solar Technology: Empirical Evidence on Knowledge Spillovers Using Patent Data," CEPR Discussion Papers 7865, C.E.P.R. Discussion Papers.
  7. Frank Vöhringer & Alain Haurie & Dabo Guan & Maryse Labriet & Valentina Bosetti & Pryadarshi R. Shukla & Philippe Thalmann, 2010. "Reinforcing the EU Dialogue with Developing Countries on Climate Change Mitigation," Working Papers 2010.43, Fondazione Eni Enrico Mattei.

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