Disentangling Technological Innovations: A Micro-Econometric Analysis of their Determinants
On the basis of a unique firm-level data set from the German manufacturing sector, this paper empirically examines the determinants of environmental and non-environmental product and process innovations. Our micro-econometric analysis with multivariate probit models points to an extremely high relevance of R&D activities for all technological innovation types as well as to the relevance of a few market pull factors. The estimation results additionally reveal the importance of organizational measures for environmental product and process innovations. In this respect, not only certified environmental management systems, but also specific process- and product-related environmental organizational measures and even general organizational measures such as the certification of a quality management system according to ISO 9001 play a crucial role. Our estimation results therefore suggest the encouragement of firm-internal R&D activities and organizational measures by (environmental) policy in order to stimulate environmental technological innovations, which are able to both limit the environmental burden and contribute to the technological modernization of the economy.
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