IDEAS home Printed from https://ideas.repec.org/a/eme/ijsepp/v41y2014i11p1110-1130.html
   My bibliography  Save this article

Eco-Innovation – does additional engagement lead to additional rewards?

Author

Listed:
  • Justin Doran
  • Geraldine Ryan

Abstract

Purpose - – Eco-innovation is any form of product, process or organisational innovation that contributes towards sustainable development. Firms can eco-innovate in a variety of ways. The purpose of this paper is to identify nine different eco-innovation activities – including such items as reducing material use per unit of output, reducing energy use per unit of output, reducing carbon dioxide (CO2) “footprint” – and the authors ask whether these act as substitutes or complements to one another. Design/methodology/approach - – Eco-innovation is any form of product, process or organisational innovation that contributes towards sustainable development. Firms can eco-innovate in a variety of ways. In this paper the authors identify nine different eco-innovation activities – including such items as reducing material use per unit of output, reducing energy use per unit of output, reducing CO2“footprint” – and the authors ask whether these act as substitutes or complements to one another. Findings - – Introducing only one eco-innovation activity has little payoff (in terms of turnover per worker) with only those firms who reduce their CO2“footprint” having higher levels of turnover per worker. When introducing more than one eco-innovation activity the authors find that certain eco-innovation activities complement one another (e.g. reducing material use within the firm at the same time as improving the ability to recycle the product after use) others act as substitutes (e.g. reducing material use within the firm at the same time as recycling waste, water or materials within the firm). Practical implications - – The results suggest that firms can maximise their productive capacity by considering specific combinations of eco-innovation. This suggests that firms should plan to introduce eco-innovation which act as complements, thereby, boosting productivity. It also suggests that eco-innovation stimuli, introduced by policy makers, should be targeted at complementary eco-innovations. Originality/value - – The paper analyses whether eco-innovations act as complements or substitutes. While a number of studies have analysed the importance of eco-innovation for firm performance, few have assessed the extent to which diverse types of eco-innovation interact with each other to complement or substitute for one another.

Suggested Citation

  • Justin Doran & Geraldine Ryan, 2014. "Eco-Innovation – does additional engagement lead to additional rewards?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 41(11), pages 1110-1130, November.
  • Handle: RePEc:eme:ijsepp:v:41:y:2014:i:11:p:1110-1130
    DOI: 10.1108/IJSE-07-2013-0169
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJSE-07-2013-0169/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJSE-07-2013-0169/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1108/IJSE-07-2013-0169?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Pierre Desrochers, 2008. "Did the Invisible Hand Need a Regulatory Glove to Develop a Green Thumb? Some Historical Perspective on Market Incentives, Win-Win Innovations and the Porter Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 41(4), pages 519-539, December.
    2. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    3. Bronwyn Hall & Francesca Lotti & Jacques Mairesse, 2009. "Innovation and productivity in SMEs: empirical evidence for Italy," Small Business Economics, Springer, vol. 33(1), pages 13-33, June.
    4. Eugenio J. Miravete & José C. Pernías, 2006. "Innovation Complementarity And Scale Of Production," Journal of Industrial Economics, Wiley Blackwell, vol. 54(1), pages 1-29, March.
    5. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    6. Hans Loof & Almas Heshmati, 2006. "On the relationship between innovation and performance: A sensitivity analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
    7. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    8. 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.
    9. Schmiedeberg, Claudia, 2008. "Complementarities of innovation activities: An empirical analysis of the German manufacturing sector," Research Policy, Elsevier, vol. 37(9), pages 1492-1503, October.
    10. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(4), pages 483-498, Winter.
    11. Sven Ake Horte & Fawzi Halila, 2008. "Success factors for eco-innovations and other innovations," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 3(3/4), pages 301-327.
    12. Roper, Stephen & Du, Jun & Love, James H., 2008. "Modelling the innovation value chain," Research Policy, Elsevier, vol. 37(6-7), pages 961-977, July.
    13. Jennifer Percival & Brian Cozzarin, 2008. "Complementarities Affecting the Returns to Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 15(4), pages 371-392.
    14. Rehfeld, Katharina-Maria & Rennings, Klaus & Ziegler, Andreas, 2007. "Integrated product policy and environmental product innovations: An empirical analysis," Ecological Economics, Elsevier, vol. 61(1), pages 91-100, February.
    15. Loof, Hans & Heshmati, Almas, 2002. "Knowledge capital and performance heterogeneity: : A firm-level innovation study," International Journal of Production Economics, Elsevier, vol. 76(1), pages 61-85, March.
    16. Jun Hou & Pierre Mohnen, 2013. "Complementarity between In-house R&D and Technology Purchasing: Evidence from Chinese Manufacturing Firms," Oxford Development Studies, Taylor & Francis Journals, vol. 41(3), pages 343-371, September.
    17. Justin Doran & Eoin O'Leary, 2011. "External Interaction, Innovation and Productivity: An Application of the Innovation Value Chain to Ireland," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(2), pages 199-222.
    18. Rene Kemp & Vanessa Oltra, 2011. "Research Insights and Challenges on Eco-Innovation Dynamics," Industry and Innovation, Taylor & Francis Journals, vol. 18(3), pages 249-253.
    19. Karen Palmer & Wallace E. Oates & Paul R. Portney & Karen Palmer & Wallace E. Oates & Paul R. Portney, 2004. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 3, pages 53-66, Edward Elgar Publishing.
    20. Giulio Cainelli & Massimiliano Mazzanti & Roberto Zoboli, 2011. "Enviromental Innovations, Complementarity and Local/Global Cooperation," Working Papers 201104, University of Ferrara, Department of Economics.
    21. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45, National Bureau of Economic Research, Inc.
    22. Stephen Roper & Jan Youtie & Philip Shapira & Andrea Fernandez-Ribas, 2010. "Knowledge, Capabilities and Manufacturing Innovation: A USA-Europe Comparison," Regional Studies, Taylor & Francis Journals, vol. 44(3), pages 253-279.
    23. Ravindra P. Saxena & Pradeep K. Khandelwal, 2012. "Greening of industries for sustainable growth," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(8), pages 551-586, June.
    24. Kammerer, Daniel, 2009. "The effects of customer benefit and regulation on environmental product innovation.: Empirical evidence from appliance manufacturers in Germany," Ecological Economics, Elsevier, vol. 68(8-9), pages 2285-2295, June.
    25. Travis Gliedt & Paul Parker, 2007. "Green community entrepreneurship: creative destruction in the social economy," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 34(8), pages 538-553, July.
    26. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
    27. James Love & Mica Ariana Mansury, 2007. "External Linkages, R&D and Innovation Performance in US Business Services," Industry and Innovation, Taylor & Francis Journals, vol. 14(5), pages 477-496.
    28. George Van Leeuwen & Luuk Klomp, 2006. "On the contribution of innovation to multi-factor productivity growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 367-390.
    29. Luuk Klomp & George Van Leeuwen, 2001. "Linking Innovation and Firm Performance: A New Approach," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 343-364.
    30. Doran, Justin & Ryan, Geraldine, 2012. "Regulation and Firm Perception, Eco-Innovation and Firm Performance," MPRA Paper 44578, University Library of Munich, Germany.
    31. repec:crs:wpaper:9833 is not listed on IDEAS
    32. Stephen Roper, 2001. "Innovation, Networks and Plant Location: Some Evidence for Ireland," Regional Studies, Taylor & Francis Journals, vol. 35(3), pages 215-228.
    33. Jens Hemmelskamp, 1999. "The Influence of Environmental Policy on Innovative Behaviour: An Econometric Study," Working Papers 1999.18, Fondazione Eni Enrico Mattei.
    34. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    35. Dylan Rassier & Dietrich Earnhart, 2010. "Does the Porter Hypothesis Explain Expected Future Financial Performance? The Effect of Clean Water Regulation on Chemical Manufacturing Firms," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(3), pages 353-377, March.
    36. Kesidou, Effie & Demirel, Pelin, 2012. "On the drivers of eco-innovations: Empirical evidence from the UK," Research Policy, Elsevier, vol. 41(5), pages 862-870.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhenia Tahmasebinia & Aliakbar Jokar & Amir Mohebi & Sogand Fardmehregan & Mehdi Beigi & Foozhan Tahmasebinia, 2022. "A Study on the Impact of Market and Strategic Orientations on Business Performance by Emphasizing the Role of Innovation as a Mediator," Business Management and Strategy, Macrothink Institute, vol. 13(2), pages 67-84, December.
    2. Małgorzata Stefania Lewandowska & Tomasz Golebiowski & Malgorzata Roszkiewicz, 2022. "Eco-innovation, International Competitiveness and Economic Performance of European Union Enterprises: Triangle Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 635-645.
    3. Pilar Portillo-Tarragona & Sabina Scarpellini & Jose M. Moneva & Jesus Valero-Gil & Alfonso Aranda-Usón, 2018. "Classification and Measurement of the Firms’ Resources and Capabilities Applied to Eco-Innovation Projects from a Resource-Based View Perspective," Sustainability, MDPI, vol. 10(9), pages 1-23, September.
    4. Ángel Peiró-Signes & Marival Segarra-Oña, 2018. "How past decisions affect future behavior on eco‐innovation: An empirical study," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1233-1244, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Doran, Justin, 2012. "Are different forms of innovation complements or substitutes?," MPRA Paper 44580, University Library of Munich, Germany.
    2. Justin Doran & Geraldine Ryan, 2016. "The Importance of the Diverse Drivers and Types of Environmental Innovation for Firm Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 25(2), pages 102-119, February.
    3. Doran, Justin & Ryan, Geraldine, 2012. "Regulation and Firm Perception, Eco-Innovation and Firm Performance," MPRA Paper 44578, University Library of Munich, Germany.
    4. Sanni, Maruf, 2018. "Drivers of eco-innovation in the manufacturing sector of Nigeria," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 303-314.
    5. J Doran & G Ryan, 2016. "The effectiveness of R&D and external interaction for innovation: Insights from quantile regression," Economic Issues Journal Articles, Economic Issues, vol. 21(1), pages 47-65, March.
    6. Justin Doran & Declan Jordan & Eoin O'Leary, 2012. "The Effects of National and International Interaction on Innovation: Evidence from the Irish CIS: 2004--06," Industry and Innovation, Taylor & Francis Journals, vol. 19(5), pages 371-390, July.
    7. JUSTIN DORAN & NOIRIN McCARTHY & MARIE O’CONNOR, 2019. "The Importance Of Internal Knowledge Generation And External Knowledge Sourcing For Sme Innovation And Performance: Evidence From Ireland," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(07), pages 1-30, October.
    8. Doran, Justin & Jordan, Declan & O'Leary, Eoin, 2013. "Effects of R&D spending on Innovation by Irish and Foreign-owned Businesses," MPRA Paper 44579, University Library of Munich, Germany.
    9. Pilar Portillo-Tarragona & Sabina Scarpellini & Jose M. Moneva & Jesus Valero-Gil & Alfonso Aranda-Usón, 2018. "Classification and Measurement of the Firms’ Resources and Capabilities Applied to Eco-Innovation Projects from a Resource-Based View Perspective," Sustainability, MDPI, vol. 10(9), pages 1-23, September.
    10. Doran, Justin & O'Leary, Eoin, 2013. "The Roles of R&D and networking for innovation by Irish and foreign-owned firms: evidence from the Irish CIS 2006-08," MPRA Paper 47291, University Library of Munich, Germany.
    11. Mairesse, Jacques & Mohnen, Pierre, 2010. "Using Innovation Surveys for Econometric Analysis," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1129-1155, Elsevier.
    12. Justin Doran & Eoin O'Leary, 2011. "External Interaction, Innovation and Productivity: An Application of the Innovation Value Chain to Ireland," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(2), pages 199-222.
    13. Amandine Pinget & Rachel Bocquet & Caroline Mothe, 2015. "Barriers to Environmental Innovation in SMEs: Empirical Evidence from French Firms," Post-Print hal-01300837, HAL.
    14. Justin Doran & Eoin O'Leary, 2016. "The Innovation Performance of Irish and Foreign-owned Firms: The Roles of R&D and Networking," The World Economy, Wiley Blackwell, vol. 39(9), pages 1384-1398, September.
    15. Giovanni Marin & Francesca Lotti, 2017. "Productivity effects of eco-innovations using data on eco-patents," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(1), pages 125-148.
    16. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2018. "Internationalisation, innovation and productivity in services: evidence from Germany, Ireland and the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(3), pages 585-615, August.
    17. Burcu Fazlıoğlu & Başak Dalgıç & Ahmet Burçin Yereli, 2019. "The effect of innovation on productivity: evidence from Turkish manufacturing firms," Industry and Innovation, Taylor & Francis Journals, vol. 26(4), pages 439-460, April.
    18. Pierre Mohnen & Bronwyn Hall, 2013. "Innovation and Productivity: An Update," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 47-65, June.
    19. Justin Doran & Declan Jordan, 2016. "Cross-sectoral differences in the drivers of innovation," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(5), pages 719-748, October.
    20. Ghisetti,Claudia & Marzucchi,Alberto & Montresor,Sandro, 2013. "Does external knowledge affect environmental innovations? An empirical investigation of eleven European countries," INGENIO (CSIC-UPV) Working Paper Series 201301, INGENIO (CSIC-UPV), revised 23 May 2013.

    More about this item

    Keywords

    Environmental economics; Productivity;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijsepp:v:41:y:2014:i:11:p:1110-1130. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.