One, Two, Three: How Many Green Patents Start Bringing Financial Benefits for Small, Medium and Large Firms?

Anastasia Semenova (), Konstantin Semenov and Maxim Storchevoy
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Anastasia Semenova: Department of Economics, St. Petersburg School of Economics and Management, HSE University (National Research University Higher School of Economics), St. Petersburg 194100, Russia
Konstantin Semenov: School of Cyber-Physical Systems and Control, Institute of Computer Science and Technology, Peter the Great St. Petersburg Polytechnic University, St. Petersburg 195251, Russia
Maxim Storchevoy: Department of Management, St. Petersburg School of Economics and Management, HSE University (National Research University Higher School of Economics), St. Petersburg 194100, Russia

Economies, 2023, vol. 11, issue 5, 1-13

Abstract: This paper studies the relationship between environmental innovations and firms’ financial performance from the perspective of environmental activism intensity. We explore how the number of green patents affects the financial performance of small, medium, and large firms and whether the growing number of green patents positively affects firms’ financial performance. We employed a panel data sample of 1136 green innovative and 2395 non-green innovative firms from the USA and Europe and compared their financial results. The results show that small firms benefit financially only in the second year after the first green patent implementation. Medium-sized firms enjoy improved financial performance in the first two years after the implementation of one or two green patents; however, the third green patent does not anyhow improve the financial performance. Large firms gain financial benefits every year after issuing green patents regardless of the patents’ quantity. Generally, the increase in financial performance is moderate in the first year, reaches the maximum in the second year, and becomes statistically insignificant in the third year after the last green patent’s implementation.

Keywords: environmental innovations; financial performance; green patents; sustainable development (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2023
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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