preferences. In order to generate global innovation, an international firm should look for the global common denominator of … export effective. We investigate data from the ZEW Innovation survey of 4,786 firms in the manufacturing and service … industries. These firms were asked about the sources of their innovation and their exporting activities. We find evidence that …

are induced by regulations. However, innovation that increases a firm's material or energy efficiency in terms of material … voluntary innovations, although the effect is significantly larger for regulation-driven innovation.We conclude that the Porter … hypothesis does not hold in general for its 'strong' version but has to be qualified by the type of environmental innovation. Our …