Environmental management and innovation activities in developing countries: A case study of Argentine manufacturing firms

Abstract

Based on micro data for 716 manufacturing firms from the Second Innovation and Technological Behavior Survey for 1998-2001, in our econometric analysis we find that firm size and technology acquisition expenditures increase both the probability of undertaking environmental management activities (EMA) and the quality of environmental management. In addition, we find a positive impact of environmental regulatory pressures on innovative behavior. Despite the fact that foreign ownership is assoc iated to a decrease in the quality of environmental management, foreign firms are more prone to undertake EMA and generate positive environmental spillovers, by inducing simple clean production management in domestic firms with high absorption capabilities.