Linking induced technological change, and environmental regulation: Evidence from patenting in the U.S. auto industry

► We examine carefully screened patent database in auto emission control technology. ► Performance-based technology-forcing (PBTF) regulation stimulates innovation. ► Both automakers and component suppliers innovated under the PBTF regulation. ► PBTF regulation temporarily induced domestic U.S. firm...

Full description

Saved in:
Bibliographic Details
Published in:Research policy 2011-11, Vol.40 (9), p.1240-1252
Main Authors: Lee, Jaegul, Veloso, Francisco M., Hounshell, David A.
Format: Article
Language:English
Subjects:
Auto industry
Automobile industry
Automobiles
Automotive components
Automotive engineering
Automotive industry
Control
Emission analysis
Emissions control
Enterprises
Environmental protection
Environmental strategy
Environmental technologies
Innovations
Investment
Regulation
Studies
Technological change
Technology
Technology-forcing regulations
U.S.A
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:► We examine carefully screened patent database in auto emission control technology. ► Performance-based technology-forcing (PBTF) regulation stimulates innovation. ► Both automakers and component suppliers innovated under the PBTF regulation. ► PBTF regulation temporarily induced domestic U.S. firms become more innovative. This article uses a carefully screened patent database in automobile emission control technologies and a detailed regulatory action analysis to examine firms’ innovation in response to U.S. technology-forcing auto emissions standards enacted between 1970 and 1998. The study finds that under the performance-based technology-forcing (PBTF) auto emissions regulations, both automakers and component suppliers innovated and introduced more advanced emission control technologies for automobile applications. The study also shows that stringent PBTF regulation temporarily induced domestic U.S. firms to become more innovative than foreign firms that operated in the local U.S. market during the early phase of the regulatory regime. Findings of this research strongly imply that government intervention in the form of technology-forcing regulation can drive firms to invest in technological innovation.
ISSN:0048-7333
1873-7625
DOI:10.1016/j.respol.2011.06.006