Specificities of environmental innovation dynamics in service firms: the French case

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Specificities of environmental innovation dynamics in service firms: the French case Céline Merlin-Brogniart 1,2 & Simon Nadel 1,2 Accepted: 5 October 2020/ # Springer-Verlag GmbH Germany, part of Springer Nature 2020

Abstract This paper analyzes the determinants of environmental innovation in service activities, as well as regulatory dimension and its influence on the environmental performance of service activities. An econometric model is built using the “Community Innovation Survey 2008” (CIS 2008). Results show that environmental innovations in services are integrated into both technological and nontechnological innovations. The specificities of eco-innovation in service activities compared to manufacturing firms leads to eco-innovation the environmental benefit of which occurs during final consumption of the product rather than during the production process. If cost reduction is a main determinant for all sectors, the role of regulation differs according to the sector: strong for trade and transport, the influence of regulation is minor for the others service sectors. Keywords Environmental innovation . Services . French case JEL classification 03 . Q55 . L8

1 Introduction According to the literature, an environmental innovation (EI) is defined as a new or improved process, material, product, technique, or management system that avoids or reduces the environmental impact (Arundel et al. 2007; Horbach 2008). In line with the Porter hypothesis (Porter 1991; Porter and Van Der Linde 1995a, b) and the seminal article

* Simon Nadel simon.nadel@univ–lille.fr

1

Clerse (UMR 8019), University of Lille, Cité Scientifique, 59650 Villeneuve d’Ascq, France

2

Faculté des Sciences économiques et sociales, Université de Lille - Cité Scientifique, 59655 Villeneuve d’Ascq cedex, France

C. Merlin-Brogniart, S. Nadel

by Rennings (2000), economics of innovation highlights three major sets of determinants of environmental innovations (EIs): a “regulatory push/pull effect”,1 that is largely dominant in this literature on EIs, and two more classical determinants of “market pull” and “technology push” (Rennings 2000). Although several studies have intended to show the role of these three key determinants of EIs by industrial firms (Horbach 2008; Horbach et al. 2012; Galliano and Nadel 2015), only a few works have focused on the drivers of EI processes in service firms (cf. Cainelli and Mazzanti 2013). Environmental innovation in services has been the subject of few studies for two reasons: a limited attention given to service activities, and the fact that the services sector is considered less polluting than industry. Innovation in services has long been ignored in the economic literature, while the share of services has not ceased to increase in industrialized economies, from 56.7% in 1965 to 78.76% of GDP in 2015 in the French case (World Bank). The lower attention given to services is also related to the measure of innovation in services. Because surveys have focused on industry, indicators used to measure innovation were