Disentangling technological innovations: a micro-econometric analysis of their determinants

On the basis of a unique firm-level dataset from the German manufacturing sector, this paper empirically examines the determinants of environmental and non-environmental product and process innovations. The micro-econometric analysis with multivariate probit models points to an extremely high relevance of R&D activities for all technological innovation types, as well as to the relevance of a few market pull factors. The estimation results additionally reveal the importance of organisational measures for environmental product and process innovations. In this regard, not only certified environmental management systems, but also specific process- and product-related environmental organisational measures and even general organisational measures, such as the certification of a quality management system according to ISO 9001, play a crucial role. The estimation results therefore suggest the encouragement of firm-internal R&D activities and organisational measures by (environmental) policy in order to stimulate environmental technological innovations, which are able to both limit the environmental burden and contribute to the technological modernisation of the economy.