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Environmental innovation: Using qualitative models to identify indicators for policy

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Kanerva, M and Arundel, A and Kemp, R (2009) Environmental innovation: Using qualitative models to identify indicators for policy. Working Paper. United Nations University.

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Abstract

Environmental innovation is an essential part of a knowledge based economy, as environmental
innovation makes economies more efficient by encouraging and facilitating the use of fewer
material or energy inputs per unit of output. In this respect, environmental innovation replaces
material inputs with knowledge. Environmental innovation should also result in fewer
externalities, or negative environmental impacts, which affect our health and well-being, also in
terms of global climate change. Technology shifts caused by technological breakthroughs, rapid
changes in demand for resources, or environmental imperatives could also impel societies to
invest more heavily in research on how to use energy and other resources more efficiently. The
main goal of this paper is to explore and identify relevant indicators for environmental
innovation that could be used to develop innovation policy for all economic sectors, as well as
for the field of environmental technologies. This is done firstly with the help of a qualitative
model presenting the eco-innovation chain. Based on both literature and our data analysis, our
chosen key indicators include measures on: environmental regulations and venture capital for the
eco-industry; environmental publications, patents and business R&D; eco-industry exports and
FDI; sales from environmentally beneficial innovation across sectors; and environmental impacts
related to energy intensity and resource productivity of economies. Finding key eco-innovation
indicators related to such factors is important for policy makers, as environmental innovation
policy is required to counter the two market failures associated with environmental pollution and
the innovation and diffusion of new technologies.

Item Type: Report (Working Paper)
Publisher: United Nations University
Date Deposited: 04 Mar 2012 23:19
Last Modified: 04 Mar 2012 23:19
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