The Role of Policy and Regulation in Driving Sustainable Innovation
摘要
This chapter discusses the indispensable role played by entrepreneurial policy and global regulation in promoting eco-innovation in companies, which build legal, economic, and social environments for sustainable actions. Referencing a variety of national, regional, and sectoral policies, including the types and levels of carbon pricing that have emerged from the EU ETS and from the Swedish carbon tax, it demonstrates how policies, not least different types of carbon pricing, have influenced corporate decision-making in respect of climate-friendly technology investment. The chapter also offers instruments for reporting the firms’ sustainability actions and regulations that foster transparency and future planning. Some strategies, such as subsidies, green purchasing, and tax credits, are suggested to accelerate sustainable entrepreneurship opportunities and reduce risks. Also, the role of some international agreements, such as the Paris Agreement and UN Sustainable Development Goals, for global integration of sustainability purposes is highlighted. Finally, the chapter suggests some incentive and punitive strategies which could respectively promote innovation and prevention of actions and paths toward firms’ social responsibility and eventually sustainability.