Gender Diversity in R&D Teams and Firms’ Eco-innovation Strategies

Abstract

This paper examines, for the first time, whether an increase in the gender diversity in a firm’s R&D team increases the firm’s likelihood of adopting an eco-innovation strategy. We also examine whether this effect differs between clean and dirty industries, end-of-pipeline and integrated cleaner technologies, and firms with and without prior experience in eco-innovation. The empirical analysis employs propensity score matching to account for endogeneity and unobserved firm heterogeneity, using Spanish firm level data during 2009-2016. We find robust evidence that gender diversity of the R&D team matters for firms’ eco-innovation. The results bear important policy and practical implications.