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The impact of regulation and policy on radical eco‐innovation

Author

Listed:
  • Alexander Leitner
  • Walter Wehrmeyer
  • Chris France

Abstract

Purpose - This paper aims to review how current policy instruments drive (or not) environmental innovation and, by doing so, to reinvestigate the relationship between innovation and regulation. Design/methodology/approach - A comprehensive literature review on innovation and environmental regulation created a theoretical foundation of the paper. Using the grounded theory, a model was developed and evaluated using interviews. This is a timely topic as the new shape of recent environmental regulation appears to be fairly strict. A new model is presented to encapsulate highly dynamic interaction of environmental innovation and regulation to provide results that reflect on the present innovation behaviour and its implications. Findings - The model highlights various diffusion pathways that are triggered by the main three drivers of innovation namely government (regulation), market (competition and cost) and technology which has the possibility of an autonomous diffusion. Research limitations/implications - The empirical data are limited to 13 qualitative experts' interviews within industry, consultancies and governmental departments. Practical implications - The suggested model is particularly useful for policy makers to better understand the innovation dynamics and its diffusion pathways to design smarter regulations that incentivise rather than force organisations to comply with regulation. Originality/value - The paper shows how regulation drives (or not) innovation and how various diffusion pathways can be used by external stakeholders to direct and promote innovation.

Suggested Citation

  • Alexander Leitner & Walter Wehrmeyer & Chris France, 2010. "The impact of regulation and policy on radical eco‐innovation," Management Research Review, Emerald Group Publishing Limited, vol. 33(11), pages 1022-1041, September.
    • Handle: RePEc:eme:mrrpps:v:33:y:2010:i:11:p:1022-1041
    DOI: 10.1108/01409171011085877
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    Citations

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    Cited by:

    1. Polzin, Friedemann & von Flotow, Paschen & Klerkx, Laurens, 2016. "Addressing barriers to eco-innovation: Exploring the finance mobilisation functions of institutional innovation intermediaries," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 34-46.
    2. Ye Seul Choi & Up Lim, 2017. "Contextual Factors Affecting the Innovation Performance of Manufacturing SMEs in Korea: A Structural Equation Modeling Approach," Sustainability, MDPI, vol. 9(7), pages 1-15, July.
    3. Polzin, Friedemann, 2017. "Mobilizing private finance for low-carbon innovation – A systematic review of barriers and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 525-535.
    4. Riedel, Franziska & Gorbach, Gregor & Kost, Christoph, 2021. "Barriers to internal carbon pricing in German companies," Energy Policy, Elsevier, vol. 159(C).
    5. Mi Sun Park & Raimund Bleischwitz & Ki Joo Han & Eun Kyung Jang & Ji Hyung Joo, 2017. "Eco-Innovation Indices as Tools for Measuring Eco-Innovation," Sustainability, MDPI, vol. 9(12), pages 1-28, November.
    6. Deepa Guleria & Gurvinder Kaur, 2022. "Motivation for Ecopreneurial Behavior (MEB): Scale Development and Validation," SAGE Open, , vol. 12(2), pages 21582440221, May.
    7. Christopher Ball & Markus Kittler, 2019. "Removing environmental market failure through support mechanisms: insights from green start-ups in the British, French and German energy sectors," Small Business Economics, Springer, vol. 52(4), pages 831-844, April.
    8. 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.
    9. Adrián Rabadán & Ángela Triguero & Ángela Gonzalez-Moreno, 2020. "Cooperation as the Secret Ingredient in the Recipe to Foster Internal Technological Eco-Innovation in the Agri-Food Industry," IJERPH, MDPI, vol. 17(7), pages 1-19, April.
    10. Jana Hojnik, 2017. "In Pursuit of Eco-innovation," UPP Monograph Series, University of Primorska Press, number 978-961-7023-53-4.
    11. Seungyeon Moon & Heesang Lee, 2021. "Shaping a Circular Economy in the Digital TV Industry: Focusing on Ecopreneurship through the Lens of Dynamic Capability," Sustainability, MDPI, vol. 13(9), pages 1-41, April.

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