The aim of the paper is to investigate the effect of environmental stringency on innovation and productivity using a … innovation can be one of the channels through which higher sectoral productivity can be reached. The main findings suggest that … downstream stringency is the most relevant driver for innovation and that most of the effect of regulation on productivity is …

Skilled labor is a key input to the innovation process. A shortage in supply of skilled labor may hence impede … innovation activities, resulting in lower productivity gains. While governments are concerned about these likely negative impacts …, there is only limited empirical evidence whether and to what extent labor shortage affects innovation activities. The paper …