Policy-induced environmental technology and inventive efforts: : Is there a crowding out?

• Autores: Hanna Hottenrott, Sascha Rexhäuser
• Localización: Industry and Innovation, ISSN-e 1469-8390, Vol. 22, Nº. 5, 2015, págs. 375-401
• Idioma: inglés
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• Resumen

  • Substantial policy effort is devoted to stimulate environmentally friendly technology through regulation and subsidies. Since innovation is a crucial productivity driver, a potential crowding out of inventive efforts in affected firms may increase the cost of regulation. We study the effects of regulation-induced environmental technology on innovation activities for a sample of firms in Germany. We find some evidence for a crowding out of firms' in-house R&D, especially for firms facing financing constraints. Innovation outcomes and investments in innovation-related fixed assets are not affected. Moreover, subsidy-backed environmental technology does not crowd out R&D