Does Institutionalism Coupled with Venture Capital Drive Green Innovation?

Abstract

Since green patents have been rising rapidly over the past few years, countries are recognizing the need to foster green innovation to address the most serious issue of the 21st century i.e. climate change. This paper examines green innovation, focusing on institutional theory and venture capital in BRICS countries. Using fixed effect method of panel regression analysis, it is discovered that Institutional framework of countries with the integration of stringent environmental regulation and venture capital considerably drive green innovation. This study is unique since it combines Institutional and financial perspectives to examine the factors that drive environment sustainability through green innovation.

Keywords:

• BRICS
• environmental regulation
• green innovation
• institutional governance
• venture capital

JEL Classification:

• C33
• G24
• Q54
• Q55
• Q58

Disclosure statement

The authors declare that they have no competing interests.

Notes

1 Brics2022. mfa.gov.cn. (2022). Xi Focus: Xi pumps more BRICS power into global economic governance. Retrieved 18 September 2022, from http://brics2022.mfa.gov.cn/eng/tpzx/202206/t20220627_10710527.html.

2 World Resources Institute. (2018). WRI Annual Report 2018-19. Retrieved 18 September 2022, from https://www.wri.org/annualreport/2018-19.

3 Earth Index (2022). What are BRICS nations doing about climate change? Corporate Knights. Retrieved 18 September 2022, from https://www.corporateknights.com/rankings/earth-index/2022-earth-index/earth-index-brics-nations/.

4 European Patent Office (2015). Inventions in climate change mitigation technologies growing strongly. Accessed from https://www.epo.org/news-events/news/2015/201501208.html.