In general, policymakers are often faced with a different choice, i.e., the choice between using regulation-based instruments and using incentive-based instruments, where the policy instruments could be based either on mandatory approach or voluntary approach with economic incentives in market. Historically, industrial economists have regarded the issue of policy design as the one focused primarily on the choice among alternative policy instruments, where those are generally viewed as falling into two broad categories: regulation-based instruments and incentive-based instruments. Through the theoretical and empirical analysis, this study identifies some key features that are likely to increase both the effectiveness and efficiency of industrial policies with voluntary and mandatory approaches. One key feature is the existence of a strong relationship between innovation and industrial policies. The explorative innovation increases the incentives for participation in long-term but also reduces the financial incentives in short-term. Considering firms' characteristics and industry sector also increases the synergy effect of policies and regulations. In sum, when based on the understanding and consideration on the nature of innovation and other impact factors, industrial policy can provide a mechanism for meeting industrial quality goals both effectively and efficiently. This understanding also can help policy makers to decide whether or not use of such policy approach is advisable and to design the policy ensuring that it is as effective and efficient as possible. Consequently, the current study investigates the difference and tendency of industrial policy approaches and the type of innovation carrying out three analyses according to the mandatory and voluntary approaches. With the assumption that the mandatory approach has short-run impact to prompt new technology or grow a specific industry, we firstly assess the impact of regulation, such as privatization of nature monopoly. Using the firms' data of 20 OECD countries between 1994 and 2008, we can claim that considering interaction among liberalization policies and allowing the industry characteristics are critical to determine for the Profitability effect and Operational efficiency effect and level of investments. Secondly, this study analyzes the relationship between 'Corporate Environmentalism' and composition of innovation using the Carbon Discloser Project (CDP) and (Dow Jones Sustainability Index) DJSI index data. The result shows the significant variation of firms' investment activities according to the industry sector, firm characteristics, sustainable and environmental behaviors of firms. Finally, this study identifies the relationship between 'Business-led Initiatives (CSR)' and innovation activities of firms. Using the Vigeo rating and financial data in 2009, this study shows the relationship between CSR and innovation activities of firms. Consequently, when the firm builds their short- and long-run business strategies, the consideration of the relationship between types of investment and CSR practice will lead to more synergic effect on the outcome of investments. The findings of this study could provide a comprehensive understanding on the effect of sustainable management strategies on the innovation and sustainability of firms.
Identifer | oai:union.ndltd.org:CCSD/oai:tel.archives-ouvertes.fr:tel-00820667 |
Date | 07 June 2011 |
Creators | Kim, Yunhee |
Source Sets | CCSD theses-EN-ligne, France |
Language | English |
Detected Language | English |
Type | PhD thesis |
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