Drivers of environmental innovation - Vinnova

manner. There is readily available knowledge as to the outcome and the cost of
investing when the investment decision is made. When investing in innovative
efforts neither the outcome nor the cost is known beforehand. Not even the risk
of the assessment may be easily judged. Therefore, it is not obvious how costs
should be minimised in the best way, nor what constitutes the most costefficient
decision. Innovative efforts are genuinely risky ventures that may or
may not increase competitiveness. It is most difficult to compare alternative
strategies, even after the innovative venture is carried through. Innovations are
inherently unique and there is no way to measure their cost-effectiveness.
Therefore, there is no point in assessing how regulations affect their costeffectiveness.
It is, however, reasonable to believe that innovations contribute substantially to
competitive advantage, and to the extent that regulations stimulate innovations
they may contribute to competitiveness.
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