TY - JOUR
T1 - Policy-Induced Environmental Technology and Inventive Efforts
T2 - Is There a Crowding Out?
AU - Hottenrott, Hanna
AU - Rexhäuser, Sascha
N1 - Publisher Copyright:
© 2015 Taylor & Francis.
PY - 2015/7/4
Y1 - 2015/7/4
N2 - 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.
AB - 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.
KW - Environmental policy
KW - R&D
KW - crowding out
KW - innovation
KW - regulation
KW - technological change
UR - http://www.scopus.com/inward/record.url?scp=84942822859&partnerID=8YFLogxK
U2 - 10.1080/13662716.2015.1064255
DO - 10.1080/13662716.2015.1064255
M3 - Article
AN - SCOPUS:84942822859
SN - 1366-2716
VL - 22
SP - 375
EP - 401
JO - Industry and Innovation
JF - Industry and Innovation
IS - 5
ER -