Determinants of Energy Efficient Innovation: A Systematic Literature Review

Abstract

Engaging firms to generate and adopt energy efficient innovation is crucial for balancing energy needs for sustainable development. In addition, a reduction in energy consumption can address environmental problems and lower production costs by reducing materials and/or energy costs and costs related to compliance with regulations. Considering the lack of systematic reviews focused on the determinants of energy efficient innovation, we address this gap and set forth to enhance the body of knowledge in the field of energy efficient innovation. To achieve the research aim, a systematic literature review and qualitative content analysis were conducted. This study offers two contributions. First, the study distinguishes the determinants of energy efficient innovation in three levels: micro-level, meso-level, and macro-level. According to the findings, the following determinants of energy efficient innovation are highlighted at the micro-level: (1) cost savings; (2) previous experience; (3) technological capabilities; (4) green capabilities; (5) innovation capabilities; (6) knowledge development; (7) organizational innovations; (8) financial resources; (9) investment in tangible assets. Meanwhile, the determinants are distinguished at the meso-level: (1) competitive pressure; (2) customer and provider pressure; (3) external knowledge cooperation; (4) social pressure; (5) voluntary agreements. Finally, the determinants are disclosed at the macro-level: (1) government subsidies; (2) current or future regulation. Second, the study provides insights on the determinants of energy efficient innovation and sets an agenda for future research. The study demonstrates the need for further investigations on the drivers of energy efficient innovation as compared to general eco-innovation.