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At home and abroad: An empirical analysis of innovation and diffusion in energy technologies

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  • Verdolini, Elena
  • Galeotti, Marzio

Abstract

This paper contributes to the induced innovation literature by extending the analysis of supply and demand determinants of innovation in energy technologies to account for international knowledge flows and spillovers. We select a sample of 38 innovating countries and study how knowledge related to energy-efficient and environmentally friendly technologies flows across geographical and technological space. We demonstrate that higher geographical and technological distances are associated with lower probabilities of knowledge flow. Next, we use previous estimates to construct internal and external knowledge stocks for a panel of 17 countries. We then 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, proxied by energy prices, and of technological opportunity, proxied by the knowledge stocks. Our results show that spillovers between countries have a significant positive impact on further innovation in energy-efficient and environmentally friendly technologies.

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  • Verdolini, Elena & Galeotti, Marzio, 2011. "At home and abroad: An empirical analysis of innovation and diffusion in energy technologies," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 119-134, March.
    • Handle: RePEc:eee:jeeman:v:61:y:2011:i:2:p:119-134
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    More about this item

    Keywords

    Innovation Technology diffusion Knowledge spillovers Energy technologies;

    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
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General

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