, volume 46 , issue 5 , pages 939-955

Does environmental regulation indirectly induce upstream innovation? New evidence from India

Pavel Chakraborty ¹

Chirantan Chatterjee ²

Hide authors affiliations Show authors affiliations: 2 affiliations

Centre for International Trade and Development, School of International Studies, Jawaharlal Nehru University, New Delhi 110067, India |

Indian School of Business, Knowledge City, Sector 81, SAS Nagar, Mohali, Punjab 140306, India |

Publication type: Journal Article

Publication date: 2017-06-01

Elsevier

Research Policy

scimago Q1

wos Q1

SJR: 3.443

CiteScore: 15.0

Impact factor: 8.0

ISSN: 00487333, 18737625

DOI: 10.1016/j.respol.2017.03.004

Copy DOI

Management of Technology and Innovation

Strategy and Management

Management Science and Operations Research

Abstract

Exploiting a quasi-natural experiment, which involves the imposition of a ban by Germany in 1994 on an input (‘Azo-dyes’) used by the Indian leather and textile industries, we estimate the indirect impact of the environmental regulation on innovation activities of upstream (dye-producing) firms in India and examine how it varies by different firm characteristics: size and ownership. We find robust evidence of a significant increase (11–61%) in innovation expenditure for the dye-makers in response to the ‘Azo-dyes’ ban. Additionally, we find: (i) increase in technology transfer to the tune of 1.2–2.5 times more than that of internal RD (ii) increase in innovation expenditure with firm size; (iii) domestic firms investing more in technology transfer as compared to R&D, whereas foreign firms only undertaking the latter and (iv) decrease in investments towards innovation by downstream firms, thereby pointing towards a possible substitution effect in aggregate innovation by upstream firms. Our results are consistent with a variety of estimation methods and robustness checks.

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GOST Copy

Chakraborty P., Chatterjee C. Does environmental regulation indirectly induce upstream innovation? New evidence from India // Research Policy. 2017. Vol. 46. No. 5. pp. 939-955.

GOST all authors (up to 50) Copy

Chakraborty P., Chatterjee C. Does environmental regulation indirectly induce upstream innovation? New evidence from India // Research Policy. 2017. Vol. 46. No. 5. pp. 939-955.

RIS |

Cite this

RIS Copy

TY - JOUR

DO - 10.1016/j.respol.2017.03.004

UR - https://doi.org/10.1016/j.respol.2017.03.004

TI - Does environmental regulation indirectly induce upstream innovation? New evidence from India

T2 - Research Policy

AU - Chakraborty, Pavel

AU - Chatterjee, Chirantan

PY - 2017

DA - 2017/06/01

PB - Elsevier

SP - 939-955

IS - 5

VL - 46

SN - 0048-7333

SN - 1873-7625

ER -

BibTex |

Cite this

BibTex (up to 50 authors) Copy

@article{2017_Chakraborty,

author = {Pavel Chakraborty and Chirantan Chatterjee},

title = {Does environmental regulation indirectly induce upstream innovation? New evidence from India},

journal = {Research Policy},

year = {2017},

volume = {46},

publisher = {Elsevier},

month = {jun},

url = {https://doi.org/10.1016/j.respol.2017.03.004},

number = {5},

pages = {939--955},

doi = {10.1016/j.respol.2017.03.004}

}

MLA

Cite this

MLA Copy

Chakraborty, Pavel, and Chirantan Chatterjee. “Does environmental regulation indirectly induce upstream innovation? New evidence from India.” Research Policy, vol. 46, no. 5, Jun. 2017, pp. 939-955. https://doi.org/10.1016/j.respol.2017.03.004.

Publisher

Elsevier

Journal

Research Policy

scimago Q1

wos Q1

SJR

3.443

CiteScore

15.0

Impact factor

8.0

ISSN

00487333 (Print)

18737625