Drivers of eco-innovation: the role of appropriability strategies and complementary assets

How do eco-innovators protect and profit from their innovations so they have the incentive to undertake an innovation in the first place? The double externality nature of environmental innovations intricates this appropriability problem, as competitors and society might also benefit from the value c...

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Autores principales: Orjuela-Ramirez, Guillermo, Zuluaga Jimenez, Julio Cesar, Urbano, David
Formato: Journal Article
Lenguaje:Inglés
Publicado: Oxford University Press 2024
Materias:
Acceso en línea:https://hdl.handle.net/10568/134852
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author Orjuela-Ramirez, Guillermo
Zuluaga Jimenez, Julio Cesar
Urbano, David
author_browse Orjuela-Ramirez, Guillermo
Urbano, David
Zuluaga Jimenez, Julio Cesar
author_facet Orjuela-Ramirez, Guillermo
Zuluaga Jimenez, Julio Cesar
Urbano, David
author_sort Orjuela-Ramirez, Guillermo
collection Repository of Agricultural Research Outputs (CGSpace)
description How do eco-innovators protect and profit from their innovations so they have the incentive to undertake an innovation in the first place? The double externality nature of environmental innovations intricates this appropriability problem, as competitors and society might also benefit from the value created by eco-innovation. Based on David Teece’s Profiting from innovation framework, we argue that firms combine appropriability strategies such as patents, industrial secrecy, and complex design with the development of complementary assets to incentivize and secure rent appropriation from eco-innovation. We estimate that formal appropriability mechanisms increase the probability of developing an eco-innovation by 6 per cent, while informal mechanisms increase it by about 15 per cent. Our panel data regression model demonstrates that marketing capability enhances the effect of appropriability mechanisms by differentiating eco-innovation from other technologies. However, this complementarity differs as a firm increases marketing investments, especially in small and Research and Development R&D publicly financed firms.
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spelling CGSpace1348522025-12-02T10:59:51Z Drivers of eco-innovation: the role of appropriability strategies and complementary assets Orjuela-Ramirez, Guillermo Zuluaga Jimenez, Julio Cesar Urbano, David strategies finance innovation investment ecology marketing eco-innovation environmental innovation green innovation appropriability How do eco-innovators protect and profit from their innovations so they have the incentive to undertake an innovation in the first place? The double externality nature of environmental innovations intricates this appropriability problem, as competitors and society might also benefit from the value created by eco-innovation. Based on David Teece’s Profiting from innovation framework, we argue that firms combine appropriability strategies such as patents, industrial secrecy, and complex design with the development of complementary assets to incentivize and secure rent appropriation from eco-innovation. We estimate that formal appropriability mechanisms increase the probability of developing an eco-innovation by 6 per cent, while informal mechanisms increase it by about 15 per cent. Our panel data regression model demonstrates that marketing capability enhances the effect of appropriability mechanisms by differentiating eco-innovation from other technologies. However, this complementarity differs as a firm increases marketing investments, especially in small and Research and Development R&D publicly financed firms. 2024-04-05 2023-11-29T14:55:02Z 2023-11-29T14:55:02Z Journal Article https://hdl.handle.net/10568/134852 en Limited Access application/pdf Oxford University Press Orjuela-Ramirez, G.; Zuluaga-Jimenez, J.C.; Urbano, D. (2024) Drivers of eco-innovation: the role of appropriability strategies and complementary assets. Science and Public Policy 51 (2) p. 309–323. ISSN: 0302-3427
spellingShingle strategies
finance
innovation
investment
ecology
marketing
eco-innovation
environmental innovation
green innovation
appropriability
Orjuela-Ramirez, Guillermo
Zuluaga Jimenez, Julio Cesar
Urbano, David
Drivers of eco-innovation: the role of appropriability strategies and complementary assets
title Drivers of eco-innovation: the role of appropriability strategies and complementary assets
title_full Drivers of eco-innovation: the role of appropriability strategies and complementary assets
title_fullStr Drivers of eco-innovation: the role of appropriability strategies and complementary assets
title_full_unstemmed Drivers of eco-innovation: the role of appropriability strategies and complementary assets
title_short Drivers of eco-innovation: the role of appropriability strategies and complementary assets
title_sort drivers of eco innovation the role of appropriability strategies and complementary assets
topic strategies
finance
innovation
investment
ecology
marketing
eco-innovation
environmental innovation
green innovation
appropriability
url https://hdl.handle.net/10568/134852
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AT zuluagajimenezjuliocesar driversofecoinnovationtheroleofappropriabilitystrategiesandcomplementaryassets
AT urbanodavid driversofecoinnovationtheroleofappropriabilitystrategiesandcomplementaryassets