The research shows that MNCs are more likely than domestic firms to introduce GI (Green Innovation), benefiting from their ability to combine global and local knowledge and collaborate with subsidiaries. The study analysed data from over 39,000 European manufacturing firms and used nine variables to measure environmental benefits. The paper reads:
Researchers established a set of nine variables to investigate the environmental benefits of new innovation:
- The reduction of material or water consumption per output unit
- The reduction of energy or carbon dioxide per output unit
- Reduced air, water, noise or soil pollution
- Replacing materials with less hazardous substitutes
- Replacing fossil energy with renewable sources
- Reducing the energy or C02 used by a product
- Reducing the air, water, noise or soil pollution used by a product
- Promoting consumer recycling
- Extending the life of the product
The findings, among others, are that MNCs have a competitive edge due to their global knowledge flows and resources, leading to higher success in green technology innovation. Another finding suggests that the ability of subsidiaries to innovate depends on the MNCs’ organizational structure and resource allocation, and may vary slightly with the host country’s innovation culture. This research thus shifts the focus from willingness to taking action, and highlights the importance of MNCs’ relationships with subsidiaries and local partners in driving sustainable development. The researchers advocate for further investigation into MNCs’ strategies and mechanisms to enhance GI performance, emphasising MNCs’ potential leadership in achieving sustainable development goals.
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