At Home and Abroad: An Empirical Analysis of Innovation and Diffusion in Energy-Efficient Technologies

IEFE Working Paper No. 26

30 Pages Posted: 29 Nov 2009

See all articles by Elena Verdolini

Elena Verdolini

Fondazione Eni Enrico Mattei (FEEM), CMCC - Euro Mediterranean Centre for Climate Change

Marzio Galeotti

University of Milan - Department of Environmental Science and Policy (ESP); GREEN - Centre for Research on Geography, Resources, Environment, Energy & Networks

Multiple version iconThere are 2 versions of this paper

Date Written: November 27, 2009

Abstract

This paper contributes to the induced innovation literature by extending the analysis of supply and demand determinants of innovation in energy-efficient technologies to account for international knowledge flows and spillovers. In the first part of the paper we select a sample of 38 innovating countries and we study how knowledge related to energy-efficient technologies flows across geographical and technological space. We demonstrate that higher geographical and technological distances are associated with a lower probability of knowledge flow. In the second part of the paper, we use our previous estimates to construct stocks of internal and external knowledge for a panel of 17 countries and present an econometric analysis of the supply and demand determinants of innovation accounting for international knowledge spillovers.

Our results confirm the role of demand-pull effects, as proxied by energy prices, as well as that of technological opportunity, as proxied by the knowledge stocks. In particular, this paper provides evidence that spillovers between countries have a significant positive impact on further innovation in energy-efficient technologies.

Keywords: Innovation, Technology Diffusion, Knowledge Spillovers, Energy-Efficient

JEL Classification: O33, Q55, C13

Suggested Citation

Verdolini, Elena and Galeotti, Marzio, At Home and Abroad: An Empirical Analysis of Innovation and Diffusion in Energy-Efficient Technologies (November 27, 2009). IEFE Working Paper No. 26, Available at SSRN: https://ssrn.com/abstract=1514322 or http://dx.doi.org/10.2139/ssrn.1514322

Elena Verdolini (Contact Author)

Fondazione Eni Enrico Mattei (FEEM), CMCC - Euro Mediterranean Centre for Climate Change ( email )

C.so Magenta 63
Milano, 20123
Italy

Marzio Galeotti

University of Milan - Department of Environmental Science and Policy (ESP) ( email )

2 via Celoria
Milano, 20133
Italy
+39-2-50316470 (Phone)
+39-2-50316486 (Fax)

HOME PAGE: http://www.unimi.it/chiedove/cv/ENG/marzio_galeotti.pdf?1531977155891

GREEN - Centre for Research on Geography, Resources, Environment, Energy & Networks ( email )

via Rontgen
Milan, 20123
Italy
+39-2-58362340 (Phone)

HOME PAGE: http://https://www.green.unibocconi.eu

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