Analysing the Role of International Drivers for Eco-innovators

Abstract

The aim of this paper is to analyse the impact of several “international” drivers on firms developing or adopting eco-innovation (i.e., eco-innovators), with the help of a bivariate probit model with sample selection and using a database of Spanish innovators. We test how the eco-innovative behaviour of innovative firms is affected by international sources of funding, one international regulation (the European Union Emissions Trading Scheme, EU ETS), customers in foreign markets, cooperation with international institutions and the presence of foreign equity in firms. Our results show that the influence of international factors on the eco-innovativeness of firms is modest. Public subsidies from international sources do not increase the likelihood of being an eco-innovator, although national sources of funding do. The EU ETS and cooperation with international actors positively and significantly affect eco-innovators. Firms with foreign equity are not more likely to eco-innovate and selling abroad does not increase the likelihood of being an eco-innovator.