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Eco-innovation and firm growth: Do green gazelles run faster? Microeconometric evidence from a sample of European firms

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  • Alessandra Colombelli
  • Jackie Krafft
  • Francesco Quatraro

Abstract

This paper investigates the impact of eco-innovation on firms’ growth processes, with a special focus on gazelles, i.e. firms’ showing higher growth rates than the average. In a context shaped by more and more stringent environmental regulatory frameworks, we posit that inducement mechanisms stimulate the adoption of green technologies, increasing the derived demand for technologies produced by upstream firms supplying eco-innovations. For these reason we expect the generation of green technologies to trigger sales growth. We use firm-level data drawn from the Bureau van Dijk Database, coupled with patent information obtained from the OECD Science and Technology Indicators. The results confirm that eco-innovations are likely to augment the effects of generic innovation on firms’ growth, and this is particularly true for gazelles, which actually appear to run faster than the others.

Suggested Citation

  • Alessandra Colombelli & Jackie Krafft & Francesco Quatraro, 2015. "Eco-innovation and firm growth: Do green gazelles run faster? Microeconometric evidence from a sample of European firms," WWWforEurope Working Papers series 88, WWWforEurope.
  • Handle: RePEc:feu:wfewop:y:2015:m:3:d:0:i:88
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    4. Karl Aiginger, 2016. "New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition. Synthesis Report Part I," WWWforEurope Deliverables series 11, WWWforEurope.
    5. David Bailey & Lisa De Propris & Jürgen Janger, 2015. "Industrial and innovation policy as drivers of change," WWWforEurope Deliverables series 9, WWWforEurope.
    6. 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.
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    8. 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.
    9. Kruse, Juergen, 2016. "Innovation in Green Energy Technologies and the Economic Performance of Firms," EWI Working Papers 2016-2, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    10. Horbach, Jens, 2016. "The impact of resource efficiency measures on performance in small and medium-sized enterprises," Ruhr Economic Papers 643, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
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    More about this item

    Keywords

    Gazelles; Eco-Innovation; firms’ growth; Inducement mechanisms; derived demand; WIPO Green Inventory;

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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