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Environmental Innovations in Services. Manufacturing-Services Integration and Policy Transmissions

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  • Giulio Cainelli
  • Massimiliano Mazzanti

Abstract

We investigate the factors behind the almost unexplored realm of environmental innovation adoption in services, using an Italian dataset derived from CIS2008. It has been suggested the environmental innovations in services does not necessarily lead to greater sustainability. If services are examined through the lens of manufacturing-services integration and push and pull effects, the picture of sustainability in relation to services is somewhat gloomier. We test whether this integration is relevant for environmental innovations and whether, taking account of differences in innovation in different services industries, environmental policies for manufacturing may transmit ‘induced innovation’ effects to services. We show that the ‘drivers’ of environmental innovation in carbon abatement and energy efficiency vary across services industries, and that cooperation, training, EMS and public funding play a key role. The integration of services and manufacturing through push and pull effects, and the environmental policy transmission effect from manufacturing to services generally do not seem to have a major influence on the diffusion of environmental innovations. Where an effect is significant, it would seem to result in more negative than positive effects on eco-innovations. It seems likely that the structural EI deficits in manufacturing firms are transmitted to services through manufacturing-services integration. This is a crucial consideration for management and policy.

Suggested Citation

  • Giulio Cainelli & Massimiliano Mazzanti, 2012. "Environmental Innovations in Services. Manufacturing-Services Integration and Policy Transmissions," Working Papers 201208, University of Ferrara, Department of Economics.
    • Handle: RePEc:udf:wpaper:201208
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    More about this item

    Keywords

    environmental innovation; services; push and pull effects; EU emission trading;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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