Green innovation strategies, innovation success and firm performance – Evidence from a panel of Spanish firms

Becker, Bettina

Abstract

This paper examines the effects of adopting types of green innovation strategies on a firm’s innovation success and performance. The empirical analysis applies propensity score and kernel matching to a Spanish firm panel during 2008–2016. The results provide robust evidence that the pursuit of green innovation strategies increases a firm’s innovation success in the form of higher turnover due to new-to-market, or radical product innovation compared with innovating firms that do not adopt green innovation strategies. However, despite this positive effect on the competitiveness of firms that adopt green innovation strategies, they are generally little able to benefit in terms of their performance. While the results suggest improvements in the labour productivity of firms that adopt general green innovation strategies, no effects are experienced by firms that adopt green product innovation strategies. Moreover, the results suggest the absence of any firm performance benefits in terms of turnover or employment growth. These findings indicate that markets do not provide ‘win-win’ situations, and policy intervention is critical to support green innovation strategies.

Citation

Becker, B. (2023). Green innovation strategies, innovation success and firm performance – Evidence from a panel of Spanish firms. Sustainability, 15(2), Article 1656. https://doi.org/10.3390/su15021656

• Journal Article Type: Article
• Acceptance Date: Dec 15, 2022
• Online Publication Date: Jan 14, 2023
• Publication Date: Jan 2, 2023
• Deposit Date: Mar 15, 2023
• Publicly Available Date: Mar 23, 2023
• Journal: Sustainability
• Electronic ISSN: 2071-1050
• Publisher: MDPI
• Peer Reviewed: Peer Reviewed
• Volume: 15
• Issue: 2
• Article Number: 1656
• DOI: https://doi.org/10.3390/su15021656
• Public URL: https://durham-repository.worktribe.com/output/1178585