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2013 | OriginalPaper | Chapter

6. Implications of Policy Uncertainty for Innovation in Environmental Technologies: The Case of Public R&D Budgets

Authors : Margarita Kalamova, Nick Johnstone, Ivan Haščič

Published in: The Dynamics of Environmental and Economic Systems

Publisher: Springer Netherlands

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Abstract

The role that environmental policy uncertainty can play on innovation in environmental technologies has not been extensively assessed empirically. In this chapter, we seek to assess the impact of environmental policy uncertainty on innovation, using patent data as a proxy for innovation and volatility in public expenditures on ‘environmental’ R&D as a measure of policy uncertainty. Drawing upon a panel data set of 23 OECD countries over the period 1986–2007, support is found for the negative effect of public R&D volatility on innovation. In the base model, a 10% increase in policy uncertainty is seen to cause a 1.2–2.8% decrease in environmental patent activity, whereas a 10% increase in government support for R&D will increase innovation by 2.6–3.9%.

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previous chapter The Role and Effectiveness of Environmental and Social Regulations in Creating Innovation Offsets and Enhancing Firm Competitiveness

next chapter Eco-Activity and Innovativeness: What Is Their Relation to Environmental Performance in Consumer Firms and Industrial Firms?

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Title: Implications of Policy Uncertainty for Innovation in Environmental Technologies: The Case of Public R&D Budgets
Authors: Margarita Kalamova
Nick Johnstone
Ivan Haščič
Publisher: Springer Netherlands
Book: The Dynamics of Environmental and Economic Systems
Print ISBN: 978-94-007-5088-3

Electronic ISBN: 978-94-007-5089-0

Copyright Year: 2013
DOI: https://doi.org/10.1007/978-94-007-5089-0_6

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