October 10, 2010

The Impact of Regulation-driven Environmental Innovation on Innovation Success and Firm Performance

by Klaus Rennings and Christian Rammer

- In general, the Porter hypothesis suggests that strict environmental policy spurs "innovation offsets". Increases in resource efficiency lead to higher economic efficiency, at least in the long run. These arguments are however still based on case studies. We want to validate the hypothesis by analysing regulation-driven environmental innovations. The impact of environmental innovations on firm performance is ambiguous.

Rennings, K. and C. Rammer (2010). "The Impact of Regulation-driven Environmental Innovation on Innovation Success and Firm Performance." ZEW Discussion Paper No. 10-065, Aug 2010.