Impact of Advanced Manufacturing Technologies on Green Innovation

Abstract

The main aim of this paper is to evaluate if manufacturing firms can boost their performance through green innovations. The literature on this topic shows contradictory findings. We have concentrated on the effect of advanced manufacturing technologies (AMT) on green innovations. To the authors’ best knowledge, this research is the first to examine the impact of a firm’s own AMT on green innovation and the firm’s performance at the same time. Green innovation in our research relates to green product innovation. The data analysis is performed through three-step OLS regression analysis and two evaluation models. One model looks at AMT and how they affect green innovation, and the second model looks at how AMT and green innovations affect performance. Our findings suggest that AMT contribute to both the firm’s performance and green innovation. We found that technology is a moderator for green innovations. While the majority of research emphasizes that firms will not eco-innovate unless they receive subsidies or severe restrictions are imposed, we show that out of all innovations, 66% are green innovations. Restrictions such as having ISO 14000 certification do not contribute to green innovation, but rather the age of the firm does.