TITLE:
Does Market Competition Affect Environmental Innovation? Some International Evidence
AUTHORS:
Ioannis Chasiotis, Georgios Georgakopoulos, Kanellos Toudas
KEYWORDS:
Market Competition, Innovation, Environmental Innovation, Schumpeter, Logistic Regressions
JOURNAL NAME:
Theoretical Economics Letters,
Vol.13 No.5,
August
31,
2023
ABSTRACT: This study explores whether market competition affects firms’ propensity for environmental innovation. The sample
is an international panel of 25,833 firm-year observations from international,
non-financial, listed firms, between 2002 and 2022. Using a binary logistic
regression model and several measures of
market competition, we document that firms in competitive markets are
more likely to engage in environmental innovation. Our findings support the “escape
the competition effect”, where companies, vis-à-vis market competition, strive
to form competitive advantages.