Productivity Effects of Eco-Innovations Using Data on Eco-Patents

41 Pages Posted: 26 Oct 2016

See all articles by Giovanni Marin

Giovanni Marin

Italian National Research Council (CNR) - Centre for Economic Research on Firms and Growth (CERIS); Observatoire Français des Conjonctures Economiques (OFCE)

Francesca Lotti

Bank of Italy

Date Written: June 28, 2016

Abstract

We investigate the productivity effects of eco-innovations at the firm level using a modified version of the CDM model (Crepon et al., 1998). The distinctive nature of environmental innovations, especially as regards the need for government intervention to create market opportunities, is likely to affect the way they are pursued and their effect on productivity. The analysis is based on an unbalanced panel sample of Italian manufacturing firms merged with data on patent applications and balance sheet information. When looking at innovation’s return on productivity, we observe that eco-innovations exhibit a generally lower return relative to other innovations, at least in the short run. This differential effect is more pronounced for polluting firms, which are likely to face higher compliance costs for environmental regulations than other firms. This result holds for both the extensive (probability of patenting) and intensive (patent count) margin.

Keywords: R&D, innovation, productivity, patents, eco-patents

JEL Classification: L60, Q55

Suggested Citation

Marin, Giovanni and Lotti, Francesca, Productivity Effects of Eco-Innovations Using Data on Eco-Patents (June 28, 2016). Bank of Italy Temi di Discussione (Working Paper) No. 1067, Available at SSRN: https://ssrn.com/abstract=2859465 or http://dx.doi.org/10.2139/ssrn.2859465

Giovanni Marin

Italian National Research Council (CNR) - Centre for Economic Research on Firms and Growth (CERIS) ( email )

Via Avogadro 8
10121 Torino
Italy

Observatoire Français des Conjonctures Economiques (OFCE) ( email )

69 Quai d'Orsay
Paris 75004
France

Francesca Lotti (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

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