Page 112 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 112
In Pursuit of Eco-innovation
nings 2005; Green 2005 in Triebswetter and Wackerbauer 2008; Rehfeld
et al. 2007; Horbach 2008; Belin et al. 2009; Khanna et al. 2009; Popp et
al. 2011; Qi et al. 2010; Testa et al. 2011; Weng and Lin 2011; Zeng et al.
2011; Brouillat and Oltra 2012; Holtbrügge and Dögl 2012; Horbach et
al. 2012; Murovec et al. 2012; Triguero et al. 2013; Yabar et al. 2013; Chas-
sagnon and Haned 2014). Prioritizing and complying with the existing
regulations (Horbach 2008) has shaped the most eco-product and eco-or-
ganizational innovations (Triguero et al. 2013). Environmental regula-
tion may “force” or “drive” firms to realize economically benign environ-
mental innovation, while strict environmental regulations intended to
stimulate implementation of eco-innovation (Porter and van der Linde
1995b; Beise and Rennings 2005) can also enhance competitiveness and
may create lead markets (new markets, export opportunities for the pio-
112 neering country) (Porter and van der Linde 1995b). Hence, the regula-
tions need to comply with international regulations, global demand or
regulatory trends (Beise and Rennings 2005).
Furthermore, Desmarchelier et al. (2013), in a study of French ser-
vice firms, found a sensitivity to environmental policies; especially effec-
tive seem to be eco-taxes, which along with financial incentives exert a
positive and significant effect on environmental investments (Murovec
et al. 2012). Moreover, subsidies trigger environmental innovations in
particular, mostly because of negative external effects of environmental
problems (Horbach 2008). Several research works pointed out important
and positive effect of subsidies (Horbach 2008; Brouillat and Oltra 2012;
Murovec et al. 2012; Veugelers 2012; Desmarchelier et al. 2013) and tax-
ation (Kesidou and Demirel 2011; Brouillat and Oltra 2012; Murovec et
al. 2012; Horbach et al. 2012; Veugelers 2012; Desmarchelier et al. 2013)
on the implementation of eco-innovation.
In summary, previous literature and research works pinpointed the
key role of regulation in spurring eco-innovation, which stems from the
well-known eco-innovation peculiarity of the double externality problem
(Porter and van der Linde 1995b; Rennings 2000; Horbach 2008; Wag-
ner 2008; De Marchi 2012). Regulations have the influence to push com-
panies into eco-innovation and therefore force companies to respond.
However, the companies may be tempted to comply only minimally, or as
little as possible, with the regulation (Nidumolu et al. 2009). On the oth-
er hand, companies that seek to exceed the minimum level of compliance
often enjoy first mover advantages by pioneering in innovation (Porter
and van der Linde 1995; Nidumolu et al. 2009). Porter and van der Linde
(1995a) stressed that properly designed environmental regulations can
nings 2005; Green 2005 in Triebswetter and Wackerbauer 2008; Rehfeld
et al. 2007; Horbach 2008; Belin et al. 2009; Khanna et al. 2009; Popp et
al. 2011; Qi et al. 2010; Testa et al. 2011; Weng and Lin 2011; Zeng et al.
2011; Brouillat and Oltra 2012; Holtbrügge and Dögl 2012; Horbach et
al. 2012; Murovec et al. 2012; Triguero et al. 2013; Yabar et al. 2013; Chas-
sagnon and Haned 2014). Prioritizing and complying with the existing
regulations (Horbach 2008) has shaped the most eco-product and eco-or-
ganizational innovations (Triguero et al. 2013). Environmental regula-
tion may “force” or “drive” firms to realize economically benign environ-
mental innovation, while strict environmental regulations intended to
stimulate implementation of eco-innovation (Porter and van der Linde
1995b; Beise and Rennings 2005) can also enhance competitiveness and
may create lead markets (new markets, export opportunities for the pio-
112 neering country) (Porter and van der Linde 1995b). Hence, the regula-
tions need to comply with international regulations, global demand or
regulatory trends (Beise and Rennings 2005).
Furthermore, Desmarchelier et al. (2013), in a study of French ser-
vice firms, found a sensitivity to environmental policies; especially effec-
tive seem to be eco-taxes, which along with financial incentives exert a
positive and significant effect on environmental investments (Murovec
et al. 2012). Moreover, subsidies trigger environmental innovations in
particular, mostly because of negative external effects of environmental
problems (Horbach 2008). Several research works pointed out important
and positive effect of subsidies (Horbach 2008; Brouillat and Oltra 2012;
Murovec et al. 2012; Veugelers 2012; Desmarchelier et al. 2013) and tax-
ation (Kesidou and Demirel 2011; Brouillat and Oltra 2012; Murovec et
al. 2012; Horbach et al. 2012; Veugelers 2012; Desmarchelier et al. 2013)
on the implementation of eco-innovation.
In summary, previous literature and research works pinpointed the
key role of regulation in spurring eco-innovation, which stems from the
well-known eco-innovation peculiarity of the double externality problem
(Porter and van der Linde 1995b; Rennings 2000; Horbach 2008; Wag-
ner 2008; De Marchi 2012). Regulations have the influence to push com-
panies into eco-innovation and therefore force companies to respond.
However, the companies may be tempted to comply only minimally, or as
little as possible, with the regulation (Nidumolu et al. 2009). On the oth-
er hand, companies that seek to exceed the minimum level of compliance
often enjoy first mover advantages by pioneering in innovation (Porter
and van der Linde 1995; Nidumolu et al. 2009). Porter and van der Linde
(1995a) stressed that properly designed environmental regulations can
