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‘Better late than never’: the interplay between green technology and age for firm growth

‘Better late than never’: the interplay between green technology and age for firm growth
‘Better late than never’: the interplay between green technology and age for firm growth

This paper investigates the relationship between green/non-green technologies and firm growth. By combining the literature on eco-innovations, industrial organisation and entrepreneurial studies, we examine the dependence of this relationship on the pace at which firms grow and the age of the firm. From a dataset of 5498 manufacturing firms in Italy for the period of 2000–2008, longitudinal fixed effects quantile models are estimated, in which the firm’s age is set to moderate the effects of green and non-green patents on employment growth. We find that the positive effect of green technologies on growth is greater than that of non-green technologies. However, this result does not apply to struggling and rapidly growing firms. With fast-growing (above the median) firms, age moderates the growth effect of green technologies. Inconsistent with the extant literature, this moderation effect is positive: firm experience appears important for the growth benefits of green technologies, possibly relative to the complexity of their management.

Age, Firm growth, Green technology, Quantile fixed effects
0921-898X
1-14
Leoncini, Riccardo
e55b4df1-f510-4426-88b5-fb33457da91d
Marzucchi, Alberto
e95f0023-ac1a-4db7-b38b-c7f8c4186c7a
Montresor, Sandro
17e74371-d2af-43f3-9396-a8ccbbd72abe
Rentocchini, Francesco
8ee609a8-8a3f-4a86-94be-5050f7d8c1cb
Rizzo, Ugo
34c7657c-7b03-4963-9f82-22bdbde19685
Leoncini, Riccardo
e55b4df1-f510-4426-88b5-fb33457da91d
Marzucchi, Alberto
e95f0023-ac1a-4db7-b38b-c7f8c4186c7a
Montresor, Sandro
17e74371-d2af-43f3-9396-a8ccbbd72abe
Rentocchini, Francesco
8ee609a8-8a3f-4a86-94be-5050f7d8c1cb
Rizzo, Ugo
34c7657c-7b03-4963-9f82-22bdbde19685

Leoncini, Riccardo, Marzucchi, Alberto, Montresor, Sandro, Rentocchini, Francesco and Rizzo, Ugo (2017) ‘Better late than never’: the interplay between green technology and age for firm growth. Small Business Economics, 1-14. (doi:10.1007/s11187-017-9939-6).

Record type: Article

Abstract

This paper investigates the relationship between green/non-green technologies and firm growth. By combining the literature on eco-innovations, industrial organisation and entrepreneurial studies, we examine the dependence of this relationship on the pace at which firms grow and the age of the firm. From a dataset of 5498 manufacturing firms in Italy for the period of 2000–2008, longitudinal fixed effects quantile models are estimated, in which the firm’s age is set to moderate the effects of green and non-green patents on employment growth. We find that the positive effect of green technologies on growth is greater than that of non-green technologies. However, this result does not apply to struggling and rapidly growing firms. With fast-growing (above the median) firms, age moderates the growth effect of green technologies. Inconsistent with the extant literature, this moderation effect is positive: firm experience appears important for the growth benefits of green technologies, possibly relative to the complexity of their management.

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10.1007%2Fs11187-017-9939-6 - Version of Record
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More information

Accepted/In Press date: 30 June 2017
e-pub ahead of print date: 6 November 2017
Keywords: Age, Firm growth, Green technology, Quantile fixed effects

Identifiers

Local EPrints ID: 417205
URI: http://eprints.soton.ac.uk/id/eprint/417205
ISSN: 0921-898X
PURE UUID: 3b88decb-b5e0-4706-8536-846dfc2c0031

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Date deposited: 25 Jan 2018 17:30
Last modified: 05 Jun 2024 19:44

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Contributors

Author: Riccardo Leoncini
Author: Alberto Marzucchi
Author: Sandro Montresor
Author: Ugo Rizzo

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