Disentangling Specific Subsets of Innovations: An Empirical Analysis for German Firms

Based on a unique firm-level data set from the German manufacturing sector, this paper disentangles environmental and non-environmental product and process innovations. The multivariate probit analysis shows that the various innovation types are determined by different factors. The estimation results suggest a policy mix which comprises the encouragement of R&D activities, certified management systems, and specific management activities referring to environmentally friendly products when the implementation of all innovation types is to be supported