IDEAS home Printed from https://ideas.repec.org/p/bdi/wptemi/td_1067_16.html
   My bibliography  Save this paper

Productivity effects of eco-innovations using data on eco-patents

Author

Listed:
  • Giovanni Marin

    () (IRCrES-CNR)

  • Francesca Lotti

    () (Bank of Italy)

Abstract

We investigate the productivity effects of eco-innovations at the firm level using a modified version of the CDM model (Crepon et al., 1998). The distinctive nature of environmental innovations, especially as regards the need for government intervention to create market opportunities, is likely to affect the way they are pursued and their effect on productivity. The analysis is based on an unbalanced panel sample of Italian manufacturing firms merged with data on patent applications and balance sheet information. When looking at innovation’s return on productivity , we observe that eco-innovations exhibit a generally lower return relative to other innovations, at least in the short run. This differential effect is more pronounced for polluting firms, which are likely to face higher compliance costs for environmental regulations than other firms. This result holds for both the extensive (probability of patenting) and intensive (patent count) margin.

Suggested Citation

  • Giovanni Marin & Francesca Lotti, 2016. "Productivity effects of eco-innovations using data on eco-patents," Temi di discussione (Economic working papers) 1065, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_1067_16
    as

    Download full text from publisher

    File URL: http://www.bancaditalia.it/pubblicazioni/temi-discussione/2016/2016-1067/en_tema_1067.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dechezlepretre, Antoine & Martin, Ralf & Mohnen, Myra, 2014. "Knowledge spillovers from clean and dirty technologies," LSE Research Online Documents on Economics 60501, London School of Economics and Political Science, LSE Library.
    2. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
    3. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    4. Bronwyn H. Hall & Grid Thoma & Salvatore Torrisi, 2006. "The market value of patents and R&D: Evidence from European firms," KITeS Working Papers 186, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Nov 2006.
    5. Matthew J. Kotchen, 2006. "Green Markets and Private Provision of Public Goods," Journal of Political Economy, University of Chicago Press, vol. 114(4), pages 816-845, August.
    6. Stefan Ambec & Mark A. Cohen & Stewart Elgie & Paul Lanoie, 2013. "The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness?," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(1), pages 2-22, January.
    7. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    8. Ebru Alpay & Joe Kerkvliet & Steven Buccola, 2002. "Productivity Growth and Environmental Regulation in Mexican and U.S. Food Manufacturing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 887-901.
    9. Lanjouw, Jean Olson & Mody, Ashoka, 1996. "Innovation and the international diffusion of environmentally responsive technology," Research Policy, Elsevier, vol. 25(4), pages 549-571, June.
    10. Vanessa Oltra & Rene Kemp & Frans P. De Vries, 2010. "Patents as a measure for eco-innovation," International Journal of Environmental Technology and Management, Inderscience Enterprises Ltd, vol. 13(2), pages 130-148.
    11. Wayne B Gray & Ronald J Shadbegian, 1993. "Environmental Regulation And Manufacturing Productivity At The Plant Level," Working Papers 93-6, Center for Economic Studies, U.S. Census Bureau.
    12. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343, National Bureau of Economic Research, Inc.
    13. Bronwyn Hall & Francesca Lotti & Jacques Mairesse, 2009. "Innovation and productivity in SMEs: empirical evidence for Italy," Small Business Economics, Springer, vol. 33(1), pages 13-33, June.
    14. Eli Berman & Linda T. M. Bui, 2001. "Environmental Regulation And Productivity: Evidence From Oil Refineries," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 498-510, August.
    15. Paul Lanoie & Jérémy Laurent‐Lucchetti & Nick Johnstone & Stefan Ambec, 2011. "Environmental Policy, Innovation and Performance: New Insights on the Porter Hypothesis," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(3), pages 803-842, September.
    16. Karen Palmer & Wallace E. Oates & Paul R. Portney, 1995. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 119-132, Fall.
    17. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 22(4), pages 483-498, Winter.
    18. Sascha Rexhäuser & Christian Rammer, 2014. "Environmental Innovations and Firm Profitability: Unmasking the Porter Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(1), pages 145-167, January.
    19. Raphael Calel & Antoine Dechezleprêtre, 2016. "Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market," The Review of Economics and Statistics, MIT Press, vol. 98(1), pages 173-191, March.
    20. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    21. Francesca Lotti & Giovanni Marin, 2013. "Matching of PATSTAT applications to AIDA firms: discussion of the methodology and results," Questioni di Economia e Finanza (Occasional Papers) 166, Bank of Italy, Economic Research and International Relations Area.
    22. Popp, David & Newell, Richard G. & Jaffe, Adam B., 2010. "Energy, the Environment, and Technological Change," Handbook of the Economics of Innovation,, Elsevier.
    23. Marin, Giovanni, 2014. "Do eco-innovations harm productivity growth through crowding out? Results of an extended CDM model for Italy," Research Policy, Elsevier, vol. 43(2), pages 301-317.
    24. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
    25. Nick Johnstone & Ivan Haščič & David Popp, 2010. "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(1), pages 133-155, January.
    26. repec:fth:harver:1473 is not listed on IDEAS
    27. George van Leeuwen & Pierre Mohnen, 2017. "Revisiting the Porter hypothesis: an empirical analysis of Green innovation for the Netherlands," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(1-2), pages 63-77, February.
    28. Wagner, Marcus, 2007. "On the relationship between environmental management, environmental innovation and patenting: Evidence from German manufacturing firms," Research Policy, Elsevier, vol. 36(10), pages 1587-1602, December.
    29. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
    30. Gollop, Frank M & Roberts, Mark J, 1983. "Environmental Regulations and Productivity Growth: The Case of Fossil-Fueled Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 654-674, August.
    31. Rennings, Klaus, 2000. "Redefining innovation -- eco-innovation research and the contribution from ecological economics," Ecological Economics, Elsevier, vol. 32(2), pages 319-332, February.
    32. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    33. Ghisetti, Claudia & Rennings, Klaus, 2013. "Environmental innovations and profitability: How does it pay to be green? An empirical analysis on the German innovation survey," ZEW Discussion Papers 13-073, ZEW - Leibniz Centre for European Economic Research.
    34. David Popp, 2010. "Innovation and Climate Policy," NBER Working Papers 15673, National Bureau of Economic Research, Inc.
    35. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    36. Matteo Bugamelli & Luigi Cannari & Francesca Lotti & Silvia Magri, 2012. "The innovation gap of Italy�s production system: roots and possible solutions," Questioni di Economia e Finanza (Occasional Papers) 121, Bank of Italy, Economic Research and International Relations Area.
    37. Amemiya, Takeshi, 1984. "Tobit models: A survey," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 3-61.
    38. Horbach, Jens, 2008. "Determinants of environmental innovation--New evidence from German panel data sources," Research Policy, Elsevier, vol. 37(1), pages 163-173, February.
    39. Brunnermeier, Smita B. & Cohen, Mark A., 2003. "Determinants of environmental innovation in US manufacturing industries," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 278-293, March.
    40. David Popp, 2010. "Innovation and Climate Policy," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 275-298, October.
    41. Mariagrazia Squicciarini & Hélène Dernis & Chiara Criscuolo, 2013. "Measuring Patent Quality: Indicators of Technological and Economic Value," OECD Science, Technology and Industry Working Papers 2013/3, OECD Publishing.
    42. Christainsen, Gregory B. & Haveman, Robert H., 1981. "The contribution of environmental regulations to the slowdown in productivity growth," Journal of Environmental Economics and Management, Elsevier, vol. 8(4), pages 381-390, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:spr:ajossr:v:2:y:2017:i:1:d:10.1186_s41180-017-0015-6 is not listed on IDEAS
    2. Marco Grazzi & Chiara Piccardo & Cecilia Vergari, 2019. "Concordance and Complementarity in IP Instruments," JRC Working Papers on Corporate R&D and Innovation 2019-04, Joint Research Centre (Seville site).
    3. repec:kap:sbusec:v:52:y:2019:i:4:d:10.1007_s11187-017-9939-6 is not listed on IDEAS
    4. repec:ibn:ibrjnl:v:10:y:2017:i:9:p:39-49 is not listed on IDEAS
    5. Marco Grazzi & Chiara Piccardo & Cecilia Vergari, 2019. "Concordance and Complementarity in IP Instruments," LEM Papers Series 2019/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. M. Grazzi & C. Piccardo & C. Vergari, 2019. "Concordance and complementarity in Intellectual Property instruments," Working Papers wp1127, Dipartimento Scienze Economiche, Universita' di Bologna.
    7. repec:gam:jsusta:v:9:y:2017:i:5:p:868-:d:99307 is not listed on IDEAS
    8. repec:eee:tefoso:v:135:y:2018:i:c:p:51-63 is not listed on IDEAS
    9. Aldieri, Luigi & Kotsemir, Maxim & Vinci, Concetto Paolo, 2017. "Jacobian spillovers in environmental technological proximity: the role of Mahalanobis index on European patents within the Triad," MPRA Paper 77274, University Library of Munich, Germany.
    10. 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.
    11. Spyros Arvanitis & Michael Peneder & Christian Rammer & Tobias Stucki & Martin Wörter, 2016. "Development and Utilization of Energy-related Technologies, Economic Performance and the Role of Policy Instruments," KOF Working papers 16-419, KOF Swiss Economic Institute, ETH Zurich.
    12. Jason Li-Ying & Caroline Mothe & Uyen Nguyen-Thi, 2017. "Linking forms of inbound open innovation to a driver-based typology of environmental innovation: Evidence from French manufacturing firms," Post-Print hal-01695525, HAL.
    13. repec:spr:lsprsc:v:11:y:2018:i:3:d:10.1007_s12076-017-0196-8 is not listed on IDEAS
    14. Jové Llopis, Elisenda, & Segarra Blasco, Agustí, 1958-, 2017. "Eco-strategies and firm growth in European SMEs," Working Papers 2072/306976, Universitat Rovira i Virgili, Department of Economics.
    15. Davide Antonioli & Grazia Cecere & Massimiliano Mazzanti, 2018. "Information communication technologies and environmental innovations in firms: joint adoptions and productivity effects," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 61(11), pages 1905-1933, September.
    16. repec:gam:jsusta:v:10:y:2018:i:10:p:3541-:d:173358 is not listed on IDEAS
    17. Eric Brouillat & Maïder Saint-Jean, 2019. "Dura lex sed lex: why implementation gaps in environmental policy matter?," Cahiers du GREThA 2019-04, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    18. repec:gam:jsusta:v:10:y:2018:i:1:p:281-:d:128104 is not listed on IDEAS

    More about this item

    Keywords

    R&D; innovation; productivity; patents; eco-patents.;

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:bdi:wptemi:td_1067_16. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/bdigvit.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.