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‘Better late than never’: a longitudinal quantile regression approach to the interplay between green technology and age for firm growth

Author

Listed:
  • Riccardo Leoncini

    (University of Bologna (Italy); Freiburg Institute for Advanced Studies (FRIAS), University of Freiburg (Germany); IRCrES-CNR (Italy))

  • Alberto Marzucchi

    (Catholic University of Milan (Italy))

  • Sandro Montresor

    (Kore University of Enna (Italy))

  • Francesco Rentocchini

    (Southampton Business School, University of Southampton (UK))

  • Ugo Rizzo

    (University of Ferrara (Italy))

Abstract

This paper investigates the relationships between green/non-green technologies and firm growth. By combining the literature on eco-innovations with industrial organisation and entrepreneurial studies, this relationship is investigated by considering its dependence on the pace at which firms grow and the moderating role of age. Based on a sample of 5498 manufacturing firms in Italy for the period of 2000-2008, we estimate longitudinal fixed effects quantile models in which age is set to moderate the effects of green and non-green patents on employment growth. The results indicate a positive role of green technologies in growth greater than the effect of non-green technologies. This result is valid with the exception of struggling and rapidly growing firms: the relevance of moderately growing firms thus emerges in contrast to the more celebrated “elite of superstar” growing companies. Age plays a moderating role in the growth effects of green technologies. Not completely inconsistent with the extant literature, this moderation effect is positive, indicating the importance of firm experience in benefiting from green technologies in terms of growth, possibly relative to the complexity of their management.

Suggested Citation

  • Riccardo Leoncini & Alberto Marzucchi & Sandro Montresor & Francesco Rentocchini & Ugo Rizzo, 2016. "‘Better late than never’: a longitudinal quantile regression approach to the interplay between green technology and age for firm growth," SEEDS Working Papers 0616, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised May 2016.
    • Handle: RePEc:srt:wpaper:0616
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    Cited by:

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    2. Cristina Cersosimo, 2023. "The determinants of board size in Italian State-owned enterprises operating in water industry," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(2), pages 169-182, June.
    3. Horbach, Jens, 2016. "The impact of resource efficiency measures on performance in small and medium-sized enterprises," Ruhr Economic Papers 643, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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    More about this item

    Keywords

    green technology; firm growth; age; quantile fixed effects;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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