Integrating evolutionary and ecological economics: a dynamic analysis of enviromental concern and innovation in brazilian firms

Abstract

The objective of this paper is to examine the behaviourof industrial firms in terms of environmentally related innovations. The main assumption is that the firm decisions concerning environmental restrictions can be studied from an evolutionary perspective, which emphasizes the dynamic aspects of the innovation process. Therefore, the analysis is centred on the relationship between technology and the environment, and the motivations for the development and diffusion of innovations amongthe economicsectors. The theoretical conclusions were thentested using data from an industrial survey for thestate of Sao Paulo, which concentrates around half of the Brazilian industrial production. The main results were: (i) the highest degree of understanding environmental considerations as business opportunities was demonstrated by firms with global interests and, independently of being owned by nationals or foreigners, they do not foresee market losses caused by environmental consequencesof theiractions;(ii) the firms which modify the most their production processes for environmental reasonsare the ones which invest the most in R&D;(iti) the strategy of environmental preservation as a way to induce innovation is much morepresent in companies which attribute higher importance to their own R&D department.