Christian Reiner, senior lecturer at LBS, presented new research results at the FH Forschungsforum 2019 in Wiener Neustadt (Lower Austria). The empirical research project is based on a collaboration between Dr. Reiner and Prof. (FH) Dr. Tamás Csermely. The FH Forschungsforum is an annual conference dedicated to the presentation of applied research projects undertaken by the Austrian Universities of Applied Sciences.
The presented research project investigates the so called “Porter-Hypothesis”, which stipulates that companies become more innovative and potentially even more competitive when facing stringent but flexible environmental regulations by public authorities. Of course this result goes against conventional managerial wisdom, according to which regulated firms lose their competitive edge against rivals in countries with less stringent ecological standards. Using a sample of approx. 1600 companies from the EU Industrial R&D Scoreboard, our results provide a differentiated picture: Some sectors show a positive association between their research and expenditures and public environmental regulations, others seem to face a decline. Overall, the share of branches (out of 30) with a positive effect is approx. 60%.