Determinants of innovation in energy enterprises

Details

Supervisors

Candelon, Bertrand ; Carrilho Nunes, Inês

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

At a time when sustainability is paramount, the energy sector is considered the sector with the greatest impact on greenhouse gas emissions. The innovation push is a way to redirect the innovation efforts of companies in this sector towards more efficient and less resource-intensive products and processes. Despite the urgency to address climate change, the interplay between sectoral progress and innovation remains under-researched. This study leverages micro-data from the last three waves of the Community Innovation Survey (CIS), 2014 until 2018, and uses probit models to assess innovation dynamics within EU energy companies and how innovation determinants collectively promote or hinder the adoption of new technologies. Public financing is proving to be an important catalyst that significantly increases the likelihood of companies innovating, especially in developing cleaner and more efficient technologies that are in line with the European Union's sustainability goals. The analysis also highlights collaboration, where collaboration between firms and external entities significantly increases innovation outcomes, highlighting the importance of collaborative networks in the energy sector. Turnover, measuring costumer demand, has a significant impact on innovation in the energy sector, driving companies to eco-innovate or maintain their competitiveness based on their market status. Surprisingly, the study shows that neither the size of the company nor the level of education of the employees have a significant influence on innovation results.