Innovation investments and energy efficiency: A cluster analysis of Iranian industries

Document Type: Original Article

Authors

1 Islamic Azad University, Firoozkooh Branch, Firoozkooh, Iran

2 Department of Economics, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran

Abstract

The present paper investigates the effects of innovation investments such as research and development (R&D) expenditures (divided into domestic and foreign) and information and communications technologies (ICT ) investments on energy intensity in three clusters of Iranian industries including small, medium, and large industries during 2000-2012. The findings obtained from panel GMM method indicated that in all clusters, domestic R&D expenditures did not have a significant impact on energy intensity, while foreign R&D expenditures led to a considerable decrease in energy intensity. Moreover, ICT investments resulted in a rise in energy intensity. As it was expected, spillovers from these innovations, especially R&D spillover led to a decline in energy intensity.

Keywords


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