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Stepping up to the mark? Firms’ export activity and environmental innovation in 14 European countries

Author

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  • Aoife Hanley
  • Finn Ole Semrau

Abstract

We investigate the ability of exports to trigger the adoption of environmental innovation (EI) in firms, shedding light on the determinants of convergence in environmental standards for Europe’s catch-up economies. To analyse this question empirically, we measure the latter as the 1) probability a firm adopts EI and the 2) breadth of EI adoption in firms. Applying Logit and Poisson pseudo-maximum likelihood estimations to firm-level data for 14 European countries, we find that particularly Eastern European exporters report higher EI adoption propensities, an effect exclusively driven by process-based EI and not observable for product-based EI. Additionally, we reveal that regardless of a firm’s origin, exposure to importing countries with high market-related environmental policy stringency, is linked to the adoption of EI. We conclude that learning-by-exporting, regulation-push and demand-pull mechanisms may help to explain these findings, with foreign markets being characterised by a wider diversity of stakeholder preferences.

Suggested Citation

  • Aoife Hanley & Finn Ole Semrau, 2022. "Stepping up to the mark? Firms’ export activity and environmental innovation in 14 European countries," Industry and Innovation, Taylor & Francis Journals, vol. 29(5), pages 672-700, May.
    • Handle: RePEc:taf:indinn:v:29:y:2022:i:5:p:672-700
    DOI: 10.1080/13662716.2021.2021865
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    Cited by:

    1. Maczulskij, Terhi & Jurvanen, Outi, 2025. "Export Demand Shocks and Environmental Performance: Evidence from Finnish Exporters," ETLA Working Papers 132, The Research Institute of the Finnish Economy.
    2. Felbermayr, Gabriel & Peterson, Sonja & Wanner, Joschka, 2022. "The impact of trade and trade policy on the environment and the climate: A review," Kiel Working Papers 2233, Kiel Institute for the World Economy.
    3. Kannen, Peter & Semrau, Finn Ole & Steglich, Frauke, 2021. "Green gifts from abroad? FDI and firms' green management," Kiel Working Papers 2200, Kiel Institute for the World Economy.
    4. Leonie P. Meissner & Sonja Peterson & Finn Ole Semrau, 2026. "It’s not a sprint, it’s a marathon: reviewing governmental R&D support for environmental innovation," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 69(1), pages 1-27, January.
    5. Rousselière, Damien & Bouchard, Marie J. & Rousselière, Samira, 2024. "How does the social economy contribute to social and environmental innovation? Evidence of direct and indirect effects from a European survey," Research Policy, Elsevier, vol. 53(5).

    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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