New ventures in Cleantech: Opportunities, capabilities and innovation outcomes

Febi Jensen · Hans Lööf · Andreas Stephan

27 citations0/0 files storedBusiness Strategy and the Environment

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Entrepreneurship Studies and Influences Environmental Sustainability in Business Firm Innovation and Growth

Abstract

Abstract Facing the challenge of climate change, innovations that imply environmental benefits create business opportunities for entrepreneurs. This paper analyzes innovation capabilities of startups in Cleantech and how the innovation outcomes of those startups develop over time. Based on the Mannheim Foundation Panel and applying propensity score matching, a cohort of 567 Cleantech startups is analyzed and compared with a control cohort of non‐Cleantech startups. We find that startups in Cleantech have, on average, higher technological capabilities compared with all other startups. Our econometric evidence shows that Cleantech startups are more likely to combine existing technology in a novel way. Finally, we find that Cleantech startups develop more market novelties in subsequent years when compared with their control group peers.

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References

1995Toward a New Conception of the Environment-Competitiveness Relationship 2009Business Models, Business Strategy and Innovation 2000Sources, Procedures, and Microeconomic Effects of Innovation 2012The environment and directed technical change 2007Determinants of environmental innovation—New evidence from German panel data sources 2016Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry 2004Innovating Firms and Aggregate Innovation 2002Determinants of innovation capability in small electronics and software firms in southeast England

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