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Environmental innovation: Using qualitative models to identify indicators for policy

Author

Listed:
  • Kanerva, Minna

    (UNU-MERIT)

  • Arundel, Anthony

    (UNU-MERIT)

  • Kemp, Rene

    (UNU-MERIT, and ICIS, Maastricht University)

Abstract

Environmental innovation is an essential part of a knowledge based economy, as environmental innovation makes economies more efficient by encouraging and facilitating the use of fewer material or energy inputs per unit of output. In this respect, environmental innovation replaces material inputs with knowledge. Environmental innovation should also result in fewer externalities, or negative environmental impacts, which affect our health and well-being, also in terms of global climate change. Technology shifts caused by technological breakthroughs, rapid changes in demand for resources, or environmental imperatives could also impel societies to invest more heavily in research on how to use energy and other resources more efficiently. The main goal of this paper is to explore and identify relevant indicators for environmental innovation that could be used to develop innovation policy for all economic sectors, as well as for the field of environmental technologies. This is done firstly with the help of a qualitative model presenting the eco-innovation chain. Based on both literature and our data analysis, our chosen key indicators include measures on: environmental regulations and venture capital for the eco-industry; environmental publications, patents and business R&D; eco-industry exports and FDI; sales from environmentally beneficial innovation across sectors; and environmental impacts related to energy intensity and resource productivity of economies. Finding key eco-innovation indicators related to such factors is important for policy makers, as environmental innovation policy is required to counter the two market failures associated with environmental pollution and the innovation and diffusion of new technologies.

Suggested Citation

  • Kanerva, Minna & Arundel, Anthony & Kemp, Rene, 2009. "Environmental innovation: Using qualitative models to identify indicators for policy," MERIT Working Papers 2009-047, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2009047
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    File URL: https://www.merit.unu.edu/publications/wppdf/2009/wp2009-047.pdf
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    References listed on IDEAS

    as
    1. Costantini, Valeria & Crespi, Francesco, 2008. "Environmental regulation and the export dynamics of energy technologies," Ecological Economics, Elsevier, vol. 66(2-3), pages 447-460, June.
    2. 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.
    3. Nick Johnstone (ed.), 2007. "Environmental Policy and Corporate Behaviour," Books, Edward Elgar Publishing, number 12551.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Jolanta Pakulska, 2021. "The Eco-Innovation versus Economic Development on the EU Example," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 999-1008.
    2. Joan Canton & Ariane Labat & Anton Roodhuijzen, 2010. "An indicator-based assessment framework to identify country-specific challenges towards greener grow," European Economy - Economic Papers 2008 - 2015 401, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    3. Elżbieta Sobczak & Dariusz Głuszczuk & Andrzej Raszkowski, 2022. "Eco-Innovation and Innovation Level of the Economy as a Basis for the Typology of the EU Countries," IJERPH, MDPI, vol. 19(4), pages 1-17, February.
    4. Nohora Mercado-Caruso & Marival Segarra-Oña & David Ovallos-Gazabon & Angel Peiró-Signes, 2020. "Identifying Endogenous and Exogenous Indicators to Measure Eco-Innovation within Clusters," Sustainability, MDPI, vol. 12(15), pages 1-20, July.
    5. Żak, Agata, 2017. "Role Of Eco-Innovations In Agricultural Development," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2016(4), May.
    6. 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.
    7. Qaisar Iqbal & Noor Hazlina Ahmad & Yongmei Li, 2021. "Sustainable Leadership in Frontier Asia Region: Managerial Discretion and Environmental Innovation," Sustainability, MDPI, vol. 13(9), pages 1-14, April.
    8. Elżbieta Sobczak & Dariusz Głuszczuk, 2022. "Diversification of Eco-Innovation and Innovation Activity of Small and Medium-Sized Enterprises in the European Union Countries," Sustainability, MDPI, vol. 14(4), pages 1-19, February.

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    More about this item

    Keywords

    Environmental innovation; environmental goods and services; innovation indicators; CIS; environmental impacts; European Union;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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