Demand-pull and environmental innovations: Estimating the effects of innovative public procurement

Abstract

This paper contributes to the emerging literature on the adoption of environmental innovation, by investigating the so far unexplored role of governmental demand in stimulating 'greener' production choices. Specifically, the role of innovative public procurement in driving the adoption and diffusion of sustainable manufacturing technologies is analysed. Results, based on firm-level data in the 28 Member States of the European Union, Switzerland and the USA, are obtained through non-parametric matching techniques. Those outline the crucial role of innovative public procurement in the uptake of environmental innovations. This confirms the relevance of such policy instrument in allowing countries to achieve a decarbonised and sustainable growth path which is compatible with competitiveness goals.