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This paper describes a systematic literature review of how market-based instruments can influence the development of sustainable innovation. Our analysis of empirical papers published in selected peer-reviewed journals from 1992 to 2021 shows that contextual factors such as geography and industrial sector impact whether market-based instruments successfully stimulate firms to adopt sustainable innovation. Interestingly, while most of our selected papers on East Asia report positive effects of market-based instruments, about half of the papers on Europe report negative or non-significant effects. Moreover, we appear to uncover a link between the research method they use for analysis and the observed effectiveness of market-based instruments. We reflect on the limitations and bias in current methodological approaches and discuss explanations for our findings, implications for policymakers, and avenues for future research. • We review the effect of market-based instruments on sustainable innovation. • Results from 76 empirical papers show mixed effects. • The observed effect appears to depend on geography and the research method applied. • Instruments appear more effective in East Asia than in Europe. • Reported effectiveness is higher in studies using patent data versus surveys. [ABSTRACT FROM AUTHOR]

The determinants of eco-innovation activities have been widely explored for single countries. However, there is a lack of analyses comparing different countries. The Community Innovation Survey (CIS 2008) allows for an analysis of the determinants of eco-innovation in 19 different European countries. This paper focuses on Eastern Europe as the determinants of eco-innovation have not yet been systematically analyzed for these countries. Concerning the introduction of eco-innovations, this analysis shows that regulation activities and environmentally related subsidies seem to be more important for the Eastern countries than they are for the “richer” Western European countries. Furthermore, the Eastern European countries rely more on competitors and external R&D as information sources, indicating a technology transfer from West to East. [ABSTRACT FROM AUTHOR]

Providing more affordable and cleaner energy for all raises complex and significant financial, political, technical, and institutional issues, which must all be addressed to ensure sustainable development. Energy technology innovation has a critical role to play as one of the best pathways to achieve the transition to a global clean energy system. This paper is an endeavor to study the impact of government energy technology research, development, and demonstration (RD&D) budget, which is the primary input of energy technology innovations on cleaner energy supply and carbon footprints (CFP). In this study, a cleaner energy supply is measured as the contribution of renewable energy to total primary energy supply (RE). We assumed that the effect of energy innovation is not uniform but varies according to the descending and ascending movements in a government's energy technology RD&D budget. To this end, we distinguished the impact of the descending and ascending movements in government energy technology RD&D budgets on cleaner energy supply, and CFP in Europe over the period 1985 to 2016. Additionally, we carried out a comparative examination of the effects of energy technology RD&D expenditures on RE and CFP under both linear and nonlinear panel techniques. To increase room for policy implications, we also controlled for the role of economic growth and trade openness and performed several robustness check analyses. We found that the reduction of carbon footprints associated with an increase in public support to energy technology RD&D is more pronounced than the contribution of energy technology innovation to the deployment of renewable energy in Europe. This study provided little evidence in favor of the effectiveness of a government energy technology RD&D budget to substantially boost renewable energy in Europe. Following these results, we suggest that the knowledge of the asymmetric linkage between public energy technology innovation, RE, and CFP is a starting point to achieve win-win solutions that favor clean energy and environmental sustainability. • Optimizing the nonlinear effects of energy technology RD&D budgets over different time horizons. • Asymmetries in the responses of RE and CFP to shocks in energy technology innovation budgets. • The influences of energy technology innovation vary over different time horizons. • The public budget devoted to energy innovation is fundamental for curbing CFP rather than boosting RE. [ABSTRACT FROM AUTHOR]