What hampers green product innovation: the effect of experience

Abstract

Based on representative firm-level survey data for Austria, Germany, and Switzerland, this study systematically analyses the relevance and drivers of barriers to green product innovation using the example of green energy technologies. ‘Low willingness to pay’, ‘high development costs’, ‘high commercial uncertainty’, and ‘lack of favourable political framework’ are identified as the most important barriers. Moreover, we find that the firms’ innovation experience is an important driver of the level of green innovation barriers. Green innovation barriers are more accentuated for firms with green innovation activity than for firms with no green innovation activity. However, experience from different fields of green innovation and experience from non-green innovation activities help to limit these barriers.

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