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At Home and Abroad: An Empirical Analysis of Innovation and Diffusion in Energy-Efficient Technologies

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  • Verdolini, Elena
  • Galeotti, Marzio

Abstract

This paper contributes to the induced innovation literature by extending the analysis of supply and demand determinants of innovation in energy-efficient technologies to account for international knowledge flows and spillovers. In the first part of the paper we select a sample of 38 innovating countries and we study how knowledge related to energy-efficient technologies flows across geographical and technological space. We demonstrate that higher geographical and technological distances are associated with a lower probability of knowledge flow. In the second part of the paper, we use our previous estimates to construct stocks of internal and external knowledge for a panel of 17 countries and present an econometric analysis of the supply and demand determinants of innovation accounting for international knowledge spillovers. Our results confirm the role of demand-pull effects, as proxied by energy prices, as well as that of technological opportunity, as proxied by the knowledge stocks. In particular, this paper provides evidence that spillovers between countries have a significant positive impact on further innovation in energy-efficient technologies.

Suggested Citation

  • Verdolini, Elena & Galeotti, Marzio, 2009. "At Home and Abroad: An Empirical Analysis of Innovation and Diffusion in Energy-Efficient Technologies," Sustainable Development Papers 56216, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemdp:56216
    DOI: 10.22004/ag.econ.56216
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    Cited by:

    1. Mazzanti, Massimiliano & Montini, Anna, 2010. "Embedding the drivers of emission efficiency at regional level -- Analyses of NAMEA data," Ecological Economics, Elsevier, vol. 69(12), pages 2457-2467, October.
    2. De Cian, Enrica & Tavoni, Massimo, 2012. "Do technology externalities justify restrictions on emission permit trading?," Resource and Energy Economics, Elsevier, vol. 34(4), pages 624-646.
    3. Pierrakis, Yannis & Saridakis, George, 2017. "Do publicly backed venture capital investments promote innovation? Differences between privately and publicly backed funds in the UK venture capital market," Journal of Business Venturing Insights, Elsevier, vol. 7(C), pages 55-64.
    4. Leimbach, Marian & Baumstark, Lavinia, 2010. "The impact of capital trade and technological spillovers on climate policies," Ecological Economics, Elsevier, vol. 69(12), pages 2341-2355, October.
    5. Enrica Cian & Valentina Bosetti & Massimo Tavoni, 2012. "Technology innovation and diffusion in “less than ideal” climate policies: An assessment with the WITCH model," Climatic Change, Springer, vol. 114(1), pages 121-143, September.
    6. Antoine Dechezleprêtre & Matthieu Glachant, 2014. "Does Foreign Environmental Policy Influence Domestic Innovation? Evidence from the Wind Industry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(3), pages 391-413, July.
    7. Tilmann Rave & Frank Goetzke, 2013. "Climate-friendly technologies in the mobile air-conditioning sector: a patent citation analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 15(4), pages 389-422, October.
    8. Marius Christian Ley, 2010. "Insights into the Determinants of Innovation in Energy Efficiency," KOF Working papers 10-266, KOF Swiss Economic Institute, ETH Zurich.
    9. Vohringer, Frank & Haurie, Alain & Guan, Dabo & Labriet, Maryse & Loulou, Richard & Bosetti, Valentina & Shukla, Pryadarshi R. & Thalmann, Philippe, 2010. "Reinforcing the EU Dialogue with Developing Countries on Climate Change Mitigation," Sustainable Development Papers 60746, Fondazione Eni Enrico Mattei (FEEM).
    10. Sun, Yanming & Shen, Simiao & Zhou, Chuanyu, 2023. "Does the pilot emissions trading system in China promote innovation? Evidence based on green technology innovation in the energy sector," Energy Economics, Elsevier, vol. 126(C).
    11. Frauke G. Braun & Jens Schmidt-Ehmcke & Petra Zloczysti, 2010. "Innovative Activity in Wind and Solar Technology: Empirical Evidence on Knowledge Spillovers Using Patent Data," Discussion Papers of DIW Berlin 993, DIW Berlin, German Institute for Economic Research.

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    Keywords

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    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
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General

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