Unfolding heterogeneity: The different policy drivers of different eco-innovation modes

Building on the policy debate about the effectiveness of the public sector in spurring environmental innovation, the present paper investigates whether and to what extent firms pursuing different approaches to environmental innovation differently respond to policy measures (among regulatory, technology-push and demand-pull instruments). Relying on data provided by the 2012 Italian Community Innovation Survey (CIS), the empirical exercise adopts a clustering approach to identify divergent innovation trajectories (EI modes) and a logistic regression model to explore the institutional drivers of distinct EI modes. The results from 1.807 manufacturing firms indicate that the role of public policies in stimulating EI practices changes in sign and magnitude across EI policy tools and modes. This study contributes to literature by providing an enriched and more nuanced view of environmental innovation processes, with important implications for the theorization of distinct classes of policy aimed at fostering the transition towards increased sustainability