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Towards a Theory and Policy of Eco-Innovation - Neoclassical and (Co-)Evolutionary Perspectives

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  • Rennings, Klaus

Abstract

Innovation processes toward sustainable development (eco-innovations) have received increasing attention during the past years. Since existing theoretical and methodological frameworks do not address these problems adequately, research need can be identified to improve our understanding of innovation processes toward sustainability in their different dimensions, complex feedback mechanisms and interrelations. This paper discusses the potential contribution of neoclassical and (co-)evolutionary approaches from environmental and innovation economics to fill this gap. It is argued that both approaches have their merits and limits concerning a theory and policy of ecoinnovation. Neoclassical methods are most elaborated to analyze the efficiency of incentive systems which seems to be essential for stimulating innovation. Evolutionary approaches are more appropriate for analyzing long-term technological regime shifts. On this theoretical basis, a crucial question is if innovations toward sustainability can be treated like normal innovations or if a specific theory and policy are needed. Three specialties of eco-innovation are identified: the double externality problem, the regulatory push/pull effect and the increasing importance of social and institutional innovation. While the first two of them are widely ignored in innovation economics, the third is at least not elaborated appropriately. The consideration of these specialties may help to overcome market failure by establishing a specific eco-innovation policy and to avoid a "technology bias" by a broader understanding of innovation. Eco-innovation policy requires close coordination with environmental policy in all innovation phases. Environmental and eco-innovation policy can be regarded as complementarily. However, an environmental policy neglecting the potentially beneficial effects of a specific eco-innovation policy (especially in the invention phase) may lead to excessive economic costs. Due to the specialties of eco-innovation, it seems moreover to be crucial to strengthen the importance of social and institutional innovation in both eco-innovation theory and policy.

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  • Rennings, Klaus, 1998. "Towards a Theory and Policy of Eco-Innovation - Neoclassical and (Co-)Evolutionary Perspectives," ZEW Discussion Papers 98-24, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:5510
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    2. Claudia Ghisetti & Alberto Marzucchi & Sandro Montresor, 2013. "Does external knowledge affect environmental innovations? An empirical investigation of eleven European countries," DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo dis1301, Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS).
    3. Xie, Zhong & Lu, Wenling & Yu, Jing & Wu, Yanrui & Liu, Qing, 2022. "Development zones and green innovation: Evidence from Chinese listed companies," China Economic Review, Elsevier, vol. 76(C).
    4. Segura-Bonilla, Olman, 2003. "Competitiveness, systems of innovation and the learning economy: the forest sector in Costa Rica," Forest Policy and Economics, Elsevier, vol. 5(4), pages 373-384, December.
    5. Xu, Chao & Sun, Guanglin & Kong, Tao, 2024. "The impact of digital transformation on enterprise green innovation," International Review of Economics & Finance, Elsevier, vol. 90(C), pages 1-12.
    6. 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.
    7. Evgeniya Lupova-Henry & Nicola Francesco Dotti, 2019. "Governance of sustainable innovation: Moving beyond the hierarchy-market-network trichotomy? A systematic literature review using the ‘who-how-what’ framework," ULB Institutional Repository 2013/283521, ULB -- Universite Libre de Bruxelles.
    8. Zeng, Juying & Blanco-González-Tejero, Cristina & Sendra, F. Javier, 2023. "The spatial difference-in-difference measurement of policy effect of environmental protection interview on green innovation," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
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    10. Anna J. Wieczorek & Marko P. Hekkert & Ruud E.H.M. Smits, 2009. "Contemporary Innovation Policy and Instruments: Challenges and Implications," Innovation Studies Utrecht (ISU) working paper series 09-12, Utrecht University, Department of Innovation Studies, revised Jul 2009.
    11. Albitar, Khaldoon & Al-Shaer, Habiba & Liu, Yang Stephanie, 2023. "Corporate commitment to climate change: The effect of eco-innovation and climate governance," Research Policy, Elsevier, vol. 52(2).
    12. Borghesi, Simone & Cainelli, Giulio & Mazzanti, Massimiliano, 2015. "Linking emission trading to environmental innovation: Evidence from the Italian manufacturing industry," Research Policy, Elsevier, vol. 44(3), pages 669-683.
    13. Li, Yuchen & Meng, Jiayin & Zhou, Ruifan & Wang, Ying, 2024. "Does governmental venture capital (GVC) advance green innovation? Big data evidence from China," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 772-788.
    14. Liu, Yunqiang & Liu, Sha & Shao, Xiaoyu & He, Yanqiu, 2022. "Policy spillover effect and action mechanism for environmental rights trading on green innovation: Evidence from China's carbon emissions trading policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).

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