The role of innovation and agglomeration for employment growth in the environmental sector

Abstract

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How does it pay to be circular in production processes? Eco‐innovativeness and green jobs as moderators of a cost‐efficiency advantage in European small and medium enterprises

“…It might simply give rise to a mechanical increase in production costs, with no evidence of economies of scale—for example, with more sales or the improvement of internal processes offsetting the costs of the change in the workforce. Crossing our results with past literature shows that product‐related circularity may be more sensitive to effects related to green jobs, especially for firms belonging to the environmental sector (Horbach & Janser, 2016). Through the lenses of the Porther Hypothesis, green jobs seem to be related to the increased revenues benefit of environmental innovation in products, and not to the reduced costs path (Ambec & Lanoie, 2008; Horbach & Rennings, 2013).…”

“…Thus, green jobs might in fact be indirect outcomes of the decision to The positive results of CE in processes at the European level should not erase the disparities that have been revealed between sectors and countries, and which past studies have also experienced (Horbach, 2008;Horbach & Janser, 2016;Triguero et al, 2013). The differences in circularity among sectors are not surprising, as numerous variables not considered in this study may come into play, such as the nature of the products, characteristics of the inputs, suppliers, markets, Environmental Management Systems, regulation and so on.…”

“…Green products and services positively affect demand in green jobs (Cecere & Mazzanti, 2017). More precisely, the interaction between an Environmental Management System coupled with the offer of green products explains demand in green jobs (Cecere & Mazzanti, 2017) In contrast to these positive relations, whether German firms belonged to the environmental sector was a better predictor of the link between green products and green jobs than firms' level of innovation (Horbach & Janser, 2016). Other results have suggested that organisational capabilities, along with Human Resources policies, are important internal drivers and could improve efficiency through cost reduction (Bonzanini Bossle et al, 2016).…”

“…In contrast to these positive relations, whether German firms belonged to the environmental sector was a better predictor of the link between green products and green jobs than firms' level of innovation (Horbach & Janser, 2016). Other results have suggested that organisational capabilities, along with Human Resources policies, are important internal drivers and could improve efficiency through cost reduction (Bonzanini Bossle et al, 2016).…”

Firm employment growth in China: The role of marketization and regional economic factors

“…The empirical evidence that the local accumulation of knowledge (measured in terms of R&D expenditures, patents, innovation counts or questionnaire results) spurs firms’ productivity and growth is abundant (Cassia, Colombelli, & Paleari, ; Geenhuizen & Reyes‐Gonzalez, ; Gilbert, McDougall, & Audretsch, ). In particular, recent firm‐level studies (e.g., Cecere & Mazzanti, ; Horbach & Janser, ; Kunapatarawong & Martinez‐Ros, ; Leoncini, Marzucchi, Montresor, Rentocchini, & Rizzo, ) have shown that green innovation is particularly conducive to employment growth by favouring cost‐saving and pushing labour‐absorbing investment. Accordingly, the size of local green investment projects can be considered as a good proxy of the local sensitiveness to the environment, which in turn captures the incentives to labour‐absorbing, green investment.…”