Symposium „The Porter Hypothesis at 20“ The Causal Chain: „Regulation –Innovation - Competitiveness“ - Empirical Evidence from Innovation Studies Dr. Klaus Rennings, Centre for European Economic Research (ZEW) Montreal, June 27/28
The Porter Hypothesis Decomposed: Environmental Regulation Eco-Innovation Competitiveness Environmental Regulation Eco-Innovation Competitiveness Eco-Innovation
Empirical evidence from a lead market study (Beise and Rennings 2005, EcEc) Source: Beise 2001
Lead Markets  – a Mid Summer Fairy Tale? „ A lead market is like a country that has being selected to host the world cup. Because of the  home market advantage  the local team has a better chance of winning.“ European Competitiveness Report  (2006)
Lead Market Factors
The diffusion of wind energy depends on the existence of feed in tariffs Quelle:OECD Success factor Regulation advantage
The diffusion of direct injection depends on market demand Success factor demand advantage
Empirical Evidence from Innovation Surveys Rexhäuser and Rennings (forthcoming), IJTPM presented at WCERE 2010, Wednesday 8.45: Innovation impacts are higher for regulation that are older than eight years, compared to more recent regulations  Frondel, Horbach and Rennings (2007), BSE: Strict regulation has positive impact mainly on end-of-pipe innovations Cleff and Rennings (1999), EE: Regulation has positive effect on environmental process innovation Environmental  Regulation Eco-Innovation
Empirical Evidence from Innovation Surveys Rennings and Rammer (2009), CJEF presented at WCERE 2010, Thursday 8.45: Eco-efficient process innovations: Increase productivity, quality of processes, turnover, rationalization and cost reduction of processes Eco-efficient product innovations: No difference in success to non-environmental innovations Eco-Innovation Competitiveness
Empirical Evidence from Innovation Surveys Frondel, Horbach and Rennings (2007), BSE: Innovation target cost reduction has positive impacts on cleaner production innovations Cleff and Rennings (1999), EE:  Strategic market goals have positive impact on environmental product innovation  Eco-Innovation Competitiveness
Conclusions Results from lead market study: regulation and market demand are important drives for eco-innovation Innovation surveys confirm positive effects of: - regulation on eco-innovation - eco-innovation on competitiveness Impact is positive compared to non-innovators, however eco-innovators are not more successfull than other innovators (e.g. Green IT not more successfull compared to non-green IT). However, there is no economic justification for non-action. Problems: Regulation difficult to measure in surveys Research needs: - Panel data to clearify causality - Differences for innovation types, e.g. recycling, energy and material   efficiency, toxic substances, water etc. to be analysed with CIS 2009   data

Klaus Rennings Presentation - The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness? June 2010

  • 1.
    Symposium „The PorterHypothesis at 20“ The Causal Chain: „Regulation –Innovation - Competitiveness“ - Empirical Evidence from Innovation Studies Dr. Klaus Rennings, Centre for European Economic Research (ZEW) Montreal, June 27/28
  • 2.
    The Porter HypothesisDecomposed: Environmental Regulation Eco-Innovation Competitiveness Environmental Regulation Eco-Innovation Competitiveness Eco-Innovation
  • 3.
    Empirical evidence froma lead market study (Beise and Rennings 2005, EcEc) Source: Beise 2001
  • 4.
    Lead Markets – a Mid Summer Fairy Tale? „ A lead market is like a country that has being selected to host the world cup. Because of the home market advantage the local team has a better chance of winning.“ European Competitiveness Report (2006)
  • 5.
  • 6.
    The diffusion ofwind energy depends on the existence of feed in tariffs Quelle:OECD Success factor Regulation advantage
  • 7.
    The diffusion ofdirect injection depends on market demand Success factor demand advantage
  • 8.
    Empirical Evidence fromInnovation Surveys Rexhäuser and Rennings (forthcoming), IJTPM presented at WCERE 2010, Wednesday 8.45: Innovation impacts are higher for regulation that are older than eight years, compared to more recent regulations Frondel, Horbach and Rennings (2007), BSE: Strict regulation has positive impact mainly on end-of-pipe innovations Cleff and Rennings (1999), EE: Regulation has positive effect on environmental process innovation Environmental Regulation Eco-Innovation
  • 9.
    Empirical Evidence fromInnovation Surveys Rennings and Rammer (2009), CJEF presented at WCERE 2010, Thursday 8.45: Eco-efficient process innovations: Increase productivity, quality of processes, turnover, rationalization and cost reduction of processes Eco-efficient product innovations: No difference in success to non-environmental innovations Eco-Innovation Competitiveness
  • 10.
    Empirical Evidence fromInnovation Surveys Frondel, Horbach and Rennings (2007), BSE: Innovation target cost reduction has positive impacts on cleaner production innovations Cleff and Rennings (1999), EE: Strategic market goals have positive impact on environmental product innovation Eco-Innovation Competitiveness
  • 11.
    Conclusions Results fromlead market study: regulation and market demand are important drives for eco-innovation Innovation surveys confirm positive effects of: - regulation on eco-innovation - eco-innovation on competitiveness Impact is positive compared to non-innovators, however eco-innovators are not more successfull than other innovators (e.g. Green IT not more successfull compared to non-green IT). However, there is no economic justification for non-action. Problems: Regulation difficult to measure in surveys Research needs: - Panel data to clearify causality - Differences for innovation types, e.g. recycling, energy and material efficiency, toxic substances, water etc. to be analysed with CIS 2009 data

Editor's Notes

  • #7 Weiteres Beispiel: Marktpenetration von Mobilen GSM-Telefonen. Die skandinavischen Hersteller von Mobiltelefonen sind weltweit führend. Gründe hierfür liegen in der besonderen und frühen Neigung der skandinavischen Kunden zur mobilen Telefontechnologie. Sie werden einwenden, dass es in einer weitläufigen Region wie Skandinavien nicht sinnvoll sei, ein Festnetz zu verlegen und dass der Nutzen mobiler Technologie deshalb besonders hoch sei. Allerdings wiesen die skandinavischen Länder auch schon vorher die höchsten Penetrationsraten bei der Festnetztechnologie auf.