IDEAS home Printed from https://ideas.repec.org/p/fem/femwpa/2013.43.html
   My bibliography  Save this paper

Clean and Dirty International Technology Diffusion

Author

Listed:
  • Valentina Bosetti

    (Department of Economics, Bocconi University, Fondazione Eni Enrico Mattei and Euro-Mediterranean Center on Climate Change)

  • Elena Verdolini

    (Fondazione Eni Enrico Mattei and Euro-Mediterranean Center on Climate Change)

Abstract

This paper investigates the role of Intellectual Property Rights (IPR) protection and Environmental Policies (EPs) on clean (renewable) and dirty (fossil-based) technology diffusion from top-innovators. IPR protection and EPs are extensively debated policy tools, as IPR protection addresses knowledge market failure, while EPs respond to pressing local and global environmental externalities. A model of monopolistic competition inspired by the recent trade literature shows that the profits associated with exporting a blueprint are a function of the quality of the idea and of market and institutional characteristics of the receiving country. We test the empirical implications of our model using patent data in renewable and fossil efficient power technologies for 13 top innovating countries and 40 patenting authorities. We improve on previous contributions by accounting for unobserved heterogeneity and for the endogeneity of policy proxies through a Generalized Method of Moment estimator. We show that knowledge transfer through patent duplication increases with the level of IPR protection, but with slight diminishing marginal returns. The effect is stronger for clean technologies, which are arguably less mature and more sensitive to uncertainty. Commitment to EPs also increases the incentives for patent duplication. The magnitude of the effect is conditional on the nature of the technology and on the specific policy instrument.

Suggested Citation

  • Valentina Bosetti & Elena Verdolini, 2013. "Clean and Dirty International Technology Diffusion," Working Papers 2013.43, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2013.43
    as

    Download full text from publisher

    File URL: https://www.feem.it/m/publications_pages/NDL2013-043.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. de Coninck, Heleen & Fischer, Carolyn & Newell, Richard G. & Ueno, Takahiro, 2008. "International technology-oriented agreements to address climate change," Energy Policy, Elsevier, vol. 36(1), pages 335-356, January.
    2. Nesta, Lionel & Vona, Francesco & Nicolli, Francesco, 2014. "Environmental policies, competition and innovation in renewable energy," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 396-411.
    3. Lanzi, Elisa & Verdolini, Elena & Haščič, Ivan, 2011. "Efficiency-improving fossil fuel technologies for electricity generation: Data selection and trends," Energy Policy, Elsevier, vol. 39(11), pages 7000-7014.
    4. Jennifer Hunt & Marjolaine Gauthier-Loiselle, 2010. "How Much Does Immigration Boost Innovation?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(2), pages 31-56, April.
    5. Blundell, Richard & Griffith, Rachel & Windmeijer, Frank, 2002. "Individual effects and dynamics in count data models," Journal of Econometrics, Elsevier, vol. 108(1), pages 113-131, May.
    6. Carrión-Flores, Carmen E. & Innes, Robert, 2010. "Environmental innovation and environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 27-42, January.
    7. 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.
    8. repec:fth:harver:1473 is not listed on IDEAS
    9. 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.
    10. Sokoloff, Kenneth L. & Khan, B. Zorina, 1990. "The Democratization of Invention During Early Industrialization: Evidence from the United States, 1790–1846," The Journal of Economic History, Cambridge University Press, vol. 50(2), pages 363-378, June.
    11. Windmeijer, F A G & Silva, J M C Santos, 1997. "Endogeneity in Count Data Models: An Application to Demand for Health Care," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(3), pages 281-294, May-June.
    12. Keith E. Maskus, 2012. "Private Rights and Public Problems: The Global Economics of Intellectual Property in the 21st Century," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 5072, January.
    13. Elena Verdolini & Marzio Galeotti, 2009. "At Home and Abroad: An Empirical Analysis of Innovation and Diffusion in Energy-Efficient Technologies," Working Papers 2009.123, Fondazione Eni Enrico Mattei.
    14. Bronwyn H. Hall & Christian Helmers, 2010. "The role of patent protection in (clean/green) technology transfer," NBER Working Papers 16323, National Bureau of Economic Research, Inc.
    15. Sakakibara, Mariko & Branstetter, Lee, 2001. "Do Stronger Patents Induce More Innovation? Evidence from the 1988 Japanese Patent Law Reforms," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 77-100, Spring.
    16. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
    17. Verdolini, Elena & Galeotti, Marzio, 2011. "At home and abroad: An empirical analysis of innovation and diffusion in energy technologies," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 119-134, March.
    18. Keith E. Maskus, 2000. "Intellectual Property Rights in the Global Economy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 99, January.
    19. Puller, Steven L., 2006. "The strategic use of innovation to influence regulatory standards," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 690-706, November.
    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. Dasgupta, Shouro & De Cian, Enrica, 2016. "Institutions and the Environment: Existing Evidence and Future Directions," MITP: Mitigation, Innovation and Transformation Pathways 240747, Fondazione Eni Enrico Mattei (FEEM).
    2. Witajewski-Baltvilks, Jan & Verdolini, Elena & Tavoni, Massimo, 2015. "Bending the learning curve," Energy Economics, Elsevier, vol. 52(S1), pages 86-99.
    3. Srinivasan, Suchita, 2019. "The light at the end of the tunnel: Impact of policy on the global diffusion of fluorescent lamps," Energy Policy, Elsevier, vol. 128(C), pages 907-918.
    4. Elena Verdolini & Valentina Bosetti, 2017. "Environmental Policy and the International Diffusion of Cleaner Energy Technologies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(3), pages 497-536, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elena Verdolini & Valentina Bosetti, 2017. "Environmental Policy and the International Diffusion of Cleaner Energy Technologies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(3), pages 497-536, March.
    2. Rexhäuser, Sascha & Löschel, Andreas, 2015. "Invention in energy technologies: Comparing energy efficiency and renewable energy inventions at the firm level," Energy Policy, Elsevier, vol. 83(C), pages 206-217.
    3. Hille, Erik & Althammer, Wilhelm & Diederich, Henning, 2020. "Environmental regulation and innovation in renewable energy technologies: Does the policy instrument matter?," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    4. Lionel Nesta & Elena Verdolini & Francesco Vona, 2018. "Threshold Policy Effects and Directed Technical Change in Energy Innovation," Documents de Travail de l'OFCE 2018-05, Observatoire Francais des Conjonctures Economiques (OFCE).
    5. Joëlle Noailly & Roger Smeets, 2013. "Directing Technical Change from Fossil-Fuel to Renewable Energy Innovation: An Empirical Application Using Firm-Level Patent Data," CPB Discussion Paper 237, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Conti, C. & Mancusi, M.L. & Sanna-Randaccio, F. & Sestini, R. & Verdolini, E., 2018. "Transition towards a green economy in Europe: Innovation and knowledge integration in the renewable energy sector," Research Policy, Elsevier, vol. 47(10), pages 1996-2009.
    7. Nesta, Lionel & Vona, Francesco & Nicolli, Francesco, 2014. "Environmental policies, competition and innovation in renewable energy," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 396-411.
    8. Wurlod, Jules-Daniel & Noailly, Joëlle, 2018. "The impact of green innovation on energy intensity: An empirical analysis for 14 industrial sectors in OECD countries," Energy Economics, Elsevier, vol. 71(C), pages 47-61.
    9. 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.
    10. Jürgen Kruse & Heike Wetzel, 2016. "Innovation in Clean Coal Technologies: Empirical Evidence from Firm-Level Patent Data," MAGKS Papers on Economics 201615, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    11. Rubashkina, Yana & Galeotti, Marzio & Verdolini, Elena, 2015. "Environmental regulation and competitiveness: Empirical evidence on the Porter Hypothesis from European manufacturing sectors," Energy Policy, Elsevier, vol. 83(C), pages 288-300.
    12. Marin, Giovanni & Palma, Alessandro, 2017. "Technology invention and adoption in residential energy consumption," Energy Economics, Elsevier, vol. 66(C), pages 85-98.
    13. Kim, Yeong Jae & Brown, Marilyn, 2019. "Impact of domestic energy-efficiency policies on foreign innovation: The case of lighting technologies," Energy Policy, Elsevier, vol. 128(C), pages 539-552.
    14. Herman, Kyle S. & Xiang, Jun, 2019. "Induced innovation in clean energy technologies from foreign environmental policy stringency?," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 198-207.
    15. Joëlle Noailly & Roger Smeets, 2013. "Directing Technical Change from Fossil-Fuel to Renewable Energy Innovation: An Empirical Application Using Firm-Level Patent Data," Working Papers 2013.34, Fondazione Eni Enrico Mattei.
    16. Nicolò Barbieri & Claudia Ghisetti & Marianna Gilli & Giovanni Marin & Francesco Nicolli, 2016. "A Survey Of The Literature On Environmental Innovation Based On Main Path Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 596-623, July.
    17. Lazkano, Itziar & Nøstbakken, Linda & Pelli, Martino, 2017. "From fossil fuels to renewables: The role of electricity storage," European Economic Review, Elsevier, vol. 99(C), pages 113-129.
    18. 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.
    19. Carrión-Flores, Carmen E. & Innes, Robert & Sam, Abdoul G., 2013. "Do voluntary pollution reduction programs (VPRs) spur or deter environmental innovation? Evidence from 33/50," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 444-459.
    20. Costantini, Valeria & Crespi, Francesco & Palma, Alessandro, 2017. "Characterizing the policy mix and its impact on eco-innovation: A patent analysis of energy-efficient technologies," Research Policy, Elsevier, vol. 46(4), pages 799-819.

    More about this item

    Keywords

    Technology Diffusion and Transfer; Innovation; Patents; Energy Technologies; Environmental Policy; Intellectual Property Rights;
    All these keywords.

    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
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • 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:fem:femwpa:2013.43. 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: (barbara racah) The email address of this maintainer does not seem to be valid anymore. Please ask barbara racah to update the entry or send us the correct email address. General contact details of provider: https://edirc.repec.org/data/feemmit.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.