Environmental Policy, Techological Innovation and Patents

Abstract

Technlogical innovation can help realise environmental objectives in a less costly manner than would otherwise be the case. Thus, understanding the role that technological innovation can play in achieving environmental objectives is important for policy debates. However, the relationship between environmental policy and technological innovation is an area in which empirical evidence remains limited. ln an attempt to bridge this gap, the OECD has examined these issues, using patent activity as a proxy for technological innovation. This work has assessed the role that environmental policies have played in inducing "eco·innovation".