Abstract
The authors would like to thank Chris Heady (OECD Directorate for Financial and Enterprise Affairs) and Dirk Pilat (OECD Directorate for Science, Technology and Industry) for valuable comments on an earlier draft of the paper. In addition, the contributions from all of our colleagues on the OECD Project on “Environmental Policy and Firm-Level Management” are gratefully acknowledged. (See Johnstone 2006 for a full list of contributors and other outputs from the project.) In particular the insights of Toshi Arimura (Department of Economics, Sophia University, Japan) in the area of research and development have been extremely valuable.
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