Green Public Procurement and the Innovation Activities of Firms

28 Pages Posted: 20 Sep 2019

See all articles by Vera Zipperer

Vera Zipperer

German Institute for Economic Research (DIW Berlin)

Date Written: September 2019

Abstract

This paper provides first empirical insights on the relationship between green public procurement (GPP) and firms' innovation activities. Considering that the public sector is a large buyer in the economy, public procurement is able to work as demand-pull factor for new products and thus innovations - given that the procurement is aimed at such objectives. GPP is specifically implemented to contribute to more sustainable production and consumption. Using a novel firm-level dataset, this paper analyses whether GPP is able to trigger innovation activities within firms, and if so, whether these innovations are environmental innovations or not. The results show some support for a demand-pull effect of GPP on the probability of general product innovations but no conclusive evidence is found for environmental innovations.

Keywords: Green public procurement, Innovation, Demand-pull, Community innovation survey

JEL Classification: H57, O38, Q55, Q58

Suggested Citation

Zipperer, Vera, Green Public Procurement and the Innovation Activities of Firms (September 2019). DIW Berlin Discussion Paper No. 1820 (2019). Available at SSRN: https://ssrn.com/abstract=3456520 or http://dx.doi.org/10.2139/ssrn.3456520

Vera Zipperer (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

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