Institutional Drivers of Environmental Innovation: Evidence from French Industrial Firms

Abstract

This paper analyzes the institutional factors that influence French industrial firms to eco-innovate, by the approach of institutional isomorphism (Dimaggio, Powell, 1983). Beyond a general model of eco-innovation adoption, we test five models according to whether the environmental innovation is based on a product, process, or an organizational device. A two-step econometric model for analyzing the characteristics that lead to the adoption of eco-innovations is tested using individual data on innovation that are representative of the French industrial sector. The results highlight the role of different processes of institutional isomorphism, complementary to firm’s internal resources to eco-innovation adoption. They show that such institutional factors vary according to the nature of eco-innovation (technical / organizational).