-driven environmental innovation may impose additional costs to firms and lower their profits. On the other hand, eco-innovators could … profit from lower uncertainty in innovation due to regulatory standards and demand-generating effects of regulation. In this … paper we analyse (a) whether regulation-driven environmental innovation generate similar innovation success compared to …

economic prospects, firms had to cut costs and reconsider their business strategies. With respect to innovation, cost cutting … often means to stop or underresource innovation projects which may harm a firm's long-term competitiveness. Firms may … therefore refrain from reducing innovation budgets during crises but rather deliberately allocate more resources to innovation …