Companies face the challenge of combining economic and environmental objectives. An obvious, recurring question is whether, and under what circumstances, an improvement in a company’s environmental performance leads to higher profits. By examining innovation data, this study addresses the question of whether environmental innovation (EI) is synergistic with other types of innovation. To this end, we consider separately efficiency-related gains in competitiveness and cost savings due to different types of environmental innovation (EI) affecting the supply and demand sides of a company’s business. We identify synergistic interactions between EI and certain types of innovation.
