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Employment Impact Of Cleaner Production On The Firm Level: Empirical Evidence From A Survey In Five European Countries

Author

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  • KLAUS RENNINGS

    () (Centre for European Economic Research (ZEW), P.O. Box 103443, D-68034 Mannheim, Germany)

  • THOMAS ZWICK

    (Centre for European Economic Research (ZEW), P.O. Box 103443, D-68034 Mannheim, Germany)

Abstract

This paper analyses the determinants of employment reactions of firms where environmentally friendly innovations (eco-innovations) were carried out. The data stem from a telephone survey covering more than 1500 firms in five European countries that have recently introduced eco-innovations. We found that product and service innovations create more jobs than process innovations. Moreover, employment impacts differ depending on the intended goals of the innovations. If products and processes are motivated by the goal of cost reduction, they tend to reduce employment. If they are motivated by market share goals, effects can be positive or negative depending on the success of the strategy the firm is following. With respect to skill-biased technogical change, eco-innovations do not differ from other innovations. So, environmental innovations have a small but positive net effect on employment. Thus, environmental support programmes do not counteract labour market policy. A further shift from end-of-pipe technologies to cleaner production, especially towards product and service innovations, would be beneficial for the environment and create jobs.

Suggested Citation

  • Klaus Rennings & Thomas Zwick, 2002. "Employment Impact Of Cleaner Production On The Firm Level: Empirical Evidence From A Survey In Five European Countries," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 319-342.
    • Handle: RePEc:wsi:ijimxx:v:06:y:2002:i:03:n:s1363919602000604
    DOI: 10.1142/S1363919602000604
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    References listed on IDEAS

    as
    1. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    2. Brouwer, Erik & Kleinknecht, Alfred & Reijnen, Jeroen O N, 1993. "Employment Growth and Innovation at the Firm Level," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 153-159, May.
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    Citations

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    Cited by:

    1. Faucheux, S. & Nicolaï, I., 2011. "IT for green and green IT: A proposed typology of eco-innovation," Ecological Economics, Elsevier, vol. 70(11), pages 2020-2027, September.
    2. Horbach Jens, 2010. "The Impact of Innovation Activities on Employment in the Environmental Sector – Empirical Results for Germany at the Firm Level," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(4), pages 403-419, August.
    3. repec:bla:inecol:v:22:y:2018:i:5:p:1213-1227 is not listed on IDEAS
    4. repec:kap:sbusec:v:52:y:2019:i:4:d:10.1007_s11187-017-9939-6 is not listed on IDEAS
    5. Rennings, Klaus & Ziegler, Andreas & Ankele, Kathrin & Hoffmann, Esther, 2006. "The influence of different characteristics of the EU environmental management and auditing scheme on technical environmental innovations and economic performance," Ecological Economics, Elsevier, vol. 57(1), pages 45-59, April.
    6. Frondel, Manuel & Horbach, Jens & Rennings, Klaus, 2004. "End-of-Pipe or Cleaner Production? An Empirical Comparison of Environmental Innovation Decisions Across OECD Countries," ZEW Discussion Papers 04-82, ZEW - Leibniz Centre for European Economic Research.
    7. Cainelli, Giulio & Mazzanti, Massimiliano & Zoboli, Roberto, 2008. "The Relationship Between Environmental Efficiency and Manufacturing Firm’s Growth," Coalition Theory Network Working Papers 46656, Fondazione Eni Enrico Mattei (FEEM).
    8. Horbach, Jens, 2008. "The impact of innovation activities on employment in the environmental sector : empirical results for Germany at the firm level," IAB Discussion Paper 200816, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Rennings, Klaus & Ziegler, Andreas & Zwick, Thomas, 2001. "Employment changes in environmentally innovative firms," ZEW Discussion Papers 01-46, ZEW - Leibniz Centre for European Economic Research.
    10. repec:kap:jbuset:v:150:y:2018:i:4:d:10.1007_s10551-016-3163-1 is not listed on IDEAS
    11. Thomas Cleff & Klaus Rennings, 2011. "Theoretical and Empirical Evidence of Timing-to-Market and Lead Market Strategies for Successful Environmental Innovation," Discussion Papers dp11-01, Department of Economics, Simon Fraser University.
    12. Horbach, Jens & Rennings, Klaus, 2012. "Environmental innovation and employment dynamics in different technology fields: An analysis based on the German community innovation survey 2009," ZEW Discussion Papers 12-006, ZEW - Leibniz Centre for European Economic Research.
    13. Rennings, Klaus & Beise, Marian, 2003. "Lead Markets of Environmental Innovations: A Framework for Innovation and Environmental Economics," ZEW Discussion Papers 03-01, ZEW - Leibniz Centre for European Economic Research.
    14. Horbach, Jens & Rammer, Christian, 2019. "Employment and performance effects of circular economy innovations," ZEW Discussion Papers 19-016, ZEW - Leibniz Centre for European Economic Research.
    15. repec:wfo:wstudy:47155 is not listed on IDEAS
    16. Rennings, Klaus & Ziegler, Andreas, 2004. "Determinants of Environmental Innovations in Germany: Do Organizational Measures Matter? A Discrete Choice Analysis at the Firm Level," ZEW Discussion Papers 04-30, ZEW - Leibniz Centre for European Economic Research.
    17. repec:iab:iabdpa:201814 is not listed on IDEAS
    18. Riccardo Leoncini & Alberto Marzucchi & Sandro Montresor & Francesco Rentocchini & Ugo Rizzo, 2016. "‘Better late than never’: a longitudinal quantile regression approach to the interplay between green technology and age for firm growth," SEEDS Working Papers 0616, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised May 2016.
    19. repec:wfo:wstudy:47502 is not listed on IDEAS
    20. repec:wfo:wstudy:47094 is not listed on IDEAS
    21. Beise, Marian & Rennings, Klaus, 2005. "Lead markets and regulation: a framework for analyzing the international diffusion of environmental innovations," Ecological Economics, Elsevier, vol. 52(1), pages 5-17, January.
    22. Massimiliano Mazzanti & Roberto Zoboli, 2009. "Embedding environmental innovation in local production systems: SME strategies, networking and industrial relations: evidence on innovation drivers in industrial districts," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(2), pages 169-195.
    23. Sandra M. Leitner, 2018. "Eco-Innovation: Drivers, Barriers and Effects – A European Perspective," wiiw Working Papers 159, The Vienna Institute for International Economic Studies, wiiw.
    24. repec:eee:tefoso:v:129:y:2018:i:c:p:210-220 is not listed on IDEAS

    More about this item

    Keywords

    Cleaner production; environmental technologies; innovation; labour demand;

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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