The combination of supply and demand-side eco-innovation policies for regional sustainability transitions

Abstract

We argue that the combination of place-based supply-side and demand-side innovation policies is particularly important for environmental innovations. Beyond that, we call attention to the double externality problem of environmental innovations, which requires (region-specific) policy support in the diffusion phase. Finally, we posit that the successful combination of region-specific supply and demand-side eco-innovation policies can create regional lead markets and help to leverage sustainability transitions.