The Influence of State-Ownership on Eco-Innovations in Russian Manufacturing Firms

This paper studies drivers for eco-innovation in Russian manufacturing firms on a sample of 2,212 innovative firms, of which over 600 introduced eco-innovations. The companies in our sample specifically mention environmental regulation as a reason for engaging in eco-innovations. Furthermore, we show that those firms who engage in eco-innovations are motivated even stronger by the desire to increase resource efficiency. Companies under state ownership are especially prone to a higher likelihood to invest. We conclude that regulations are mostly relevant to the late comers who are obliged to follow minimum standards. On the other hand, the state uses its controlling influence to press companies under their control to exceed these minimum standards. Thus, we argue, state ownership does indeed have an influence on both the likelihood to eco-innovate and on the levels of spending. Eco-innovative state-owned companies are only prone to invest in eco-innovations, if they get additional money.