Study Examines Factors Affecting Openness in Environmental Innovation: Investing in Time

The Paris Climate Change Conference in 2015 established Environmental Innovation (EI) as a key factor to fighting pollution and waste.

The Paris Climate Change Conference in 2015 established Environmental Innovation (EI) as a key factor to fighting pollution and waste. While growing literature focuses on determinants such as regulatory and institutional frameworks, this study examines the link between openness and the greatest investment of all; time; and its role in facilitating EI.

The latest LISER Working Paper entitled “Openness and environmental innovation: Does time-horizon matter?” by MOTHE, Caroline (IREGE, University Savoie Month Blanc, France) and NGUYEN-THI Thuc Uyen (LISER, Luxembourg), compares data of respondents to the French Community Innovation Survey (CIS) for 2004-2006 and 2006-2008.

In comparing the data of both surveys, the study took a closer look at openness and specifically, the length of time of which a firm invests in the sharing and searching for external knowledge. Results differ greatly, as firms who have persistent openness are driven to greater EI than firms with sporadic openness. 

The length of time openness is allotted is a critical investment in driving EI but comes at a cost.  Openness, it turns out, is expensive. R&D cooperation/acquisition, participation at conferences, trainings, researcher exchanges, etc. take up valuable resources. Persistent openness increases a firm’s ability to absorb external knowledge as it broadens its internal competencies while sporadic openness reduces the time available for competencies take hold.

The study presents its methodology and the results of its econometric models, then provides some public policy recommendations, outline the limitations of its research, and suggest avenues for further research.