Exports and outward FDI as drivers of eco-innovations. An analysis based on Spanish manufacturing firms

Abstract

The literature about the drivers of eco-innovation has pointed out the importance of internationalization processes. This study explores the relationship between two international strategies -Exports and Outward Foreign Direct Investment (FDI)- over eco-innovations differentiating by type of innovation (product and process) and the degree of novelty (radical and incremental). We use a sample of Spanish Manufacturing firms, applying GMM estimations in the period 2008–2016. Results show different effects of learning by internationalization depending on the mode of internationalization and the type of eco innovation. Specifically, effects of outward FDI for the different types of eco-innovations are lower and take longer to materialize in eco-innovations than exports effects.