A new paper by two Italian economists finds links between information technology (IT) and environmentally-friendly innovation in firms. The paper, Information Technology, Environmental Innovations and Complementary Strategies, uses EU firm-level data to examine whether firms innovating in the IT space were also innovating with regard to their environmental practices. The researchers find a significant correlation between IT and environment-related innovation. They also find some evidence that IT helps drive environmental innovation in several ways.
This result fits well with the ideas put forth in ITIF’s 2008 report Digital Quality of Life, that information technologies are not only helping environmental regulators and activists do their job better, they are also helping businesses do a better job of making their impact more environmentally friendly.