Green patents, regulatory policies and research network policies

Abstract

The main goal of this paper is to analyse the single and joint impact of regulation policies and research network policies on environmental innovation. Our theoretical framework combines the open eco-innovation mode approach with the Porter Hypothesis, by adapting them to the knowledge production function where green patents are the dependent variable. We focus on the factors that influence the production of green patents as a proxy of new “environmental” knowledge for a panel of European countries over time. We find that both marked-based regulation policies and participation in green European research networks (in particular with universities and public research centres) positively affect environmental innovation. Moreover, the two policy tools have a complementary effect. This suggests that the effectiveness of environmental regulation policies can be increased by combining them with appropriate innovation policies.