IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v57y2025i52p8799-8816.html

Path dependence in environment-related innovation: evidence from listed firms in China

Author

Listed:
  • Wei Jin
  • Meifen Ma
  • Lin Zhang

Abstract

This paper studies the path dependence effect in corporate innovation based on the patent data of Chinese listed firms. The results provide robust evidence of the path dependence in technology innovation. The accumulated stock of brown patents reduces the ratio of green patents to total patents newly granted, thus inhibiting green structural changes in innovation. The accumulated stock of green patents increases the ratio of green patents in total patents granted, promoting structural change towards green innovation. The path dependence effect exists in both green inventions and green utility model patents. The heterogeneity analysis shows that both brown and green patent stocks of heavy polluting firms have a weaker effect on the ratio of green inventions than non-heavy polluting firms. The negative path dependence effect of brown patents on green innovation is stronger in firms with large scale, state ownership, and a high level of environmental regulation. However, the negative path dependence effects on green innovation can be alleviated for firms with superior environmental and financial performance. This suggests that the government has to create economic incentives to break the path dependence and encourage firms to engage in green innovation.

Suggested Citation

  • Wei Jin & Meifen Ma & Lin Zhang, 2025. "Path dependence in environment-related innovation: evidence from listed firms in China," Applied Economics, Taylor & Francis Journals, vol. 57(52), pages 8799-8816, November.
    • Handle: RePEc:taf:applec:v:57:y:2025:i:52:p:8799-8816
    DOI: 10.1080/00036846.2024.2404723
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2024.2404723
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2024.2404723?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

    for a different version of it.

    More about this item

    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:taf:applec:v:57:y:2025:i:52:p:8799-8816. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    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.