Environmental Externalities and Weak Appropriability: Influences on Firm Pollution Reduction Technology Development

Technological development plays a critical role in society’s ability to address environmental issues. Building on Teece’s profiting from innovation framework, we articulate how a double-externality problem weakens the appropriability regime surrounding pollution reduction technology (PRT). We then develop a theoretical framework articulating how weak appropriability induces firms to modify their innovation strategies for PRT development by...