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The dynamics of environmental innovations: three stylised trajectories of clean technology

  • Vanessa Oltra
  • Maider Saint Jean

In this article, we explore the dynamics of environmental innovations developed by firms to comply with environmental regulations. Our analysis is based on a micro-simulation model of industrial dynamics. The question arises: how do firms competing in the same industry deal with environmental issues without altering their productive efficiency or the performance of the product? We focus on clean technology which seeks to combine environmental and productive dimensions by way of innovation offsets. Our simulations show that an innovative strategy based on a good balance between environmental and productive dimensions takes more time to develop and needs to address a 'competence destroying effect'. Finally, we study favourable conditions for the development of this type of clean technology and draw some policy implications.

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Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 14 (2005)
Issue (Month): 3 ()
Pages: 189-212

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Handle: RePEc:taf:ecinnt:v:14:y:2005:i:3:p:189-212
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  1. Metcalfe, J S, 1994. "Evolutionary Economics and Technology Policy," Economic Journal, Royal Economic Society, vol. 104(425), pages 931-44, July.
  2. G. Silverberg & B. Verspagen, 1995. "Evolutionary Theorizing on Economic Growth," Working Papers wp95078, International Institute for Applied Systems Analysis.
  3. René Kemp & Xander Olsthoorn & Frans Oosterhuis & Harmen Verbruggen, 1992. "Supply and demand factors of Cleaner technologies: Some empirical evidence," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(6), pages 615-634, November.
  4. Windrum Paul, 1999. "Simulation models of technological innovation: A Review," Research Memorandum 005, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  5. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
  6. Malerba, Franco, et al, 1999. "'History-Friendly' Models of Industry Evolution: The Computer Industry," Industrial and Corporate Change, Oxford University Press, vol. 8(1), pages 3-40, March.
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