earticle

영어

This paper empirically explores the links between environmental and green innovation and labor productivity of innovative firms as a proxy for economic performance using firm level data based on Korean 2010 CIS(Community Innovation Survey) data created by the STEPI. To examine the effects of various modes of green innovation in manufacturing sector on firm performance, the paper controls for endogeneity of the innovation, using two stage Predictor Substitution and 2 Stage Residual Inclusion procedures as well. In the first stage, the probit model for each innovation variable is estimated by MLE using instrument variables such as lagged sale and worker variables, Then in the second stage, the firm’s productivity model include the predicted values of the innovation variable or residuals obtained from the probit model as an explanatory variable. The empirical results show, first, that green innovation intended for both firm and customer benefits has a positive effect on labor productivity. Firms need to implement firm-oriented environmental innovation as well as customer-oriented environmental innovation in order to increase their performance. Thus, the more the investment in the green product and process innovation was, the stronger the corporate competitive advantage was. Second empirical results also show that there are significant differences in aggregate green innovations depending on different firm sizes and industries.