With particular respect to environmental product innovations, we find that a large ma- jority of facilities in these OECD countries report that their measures are aimed at production processes and not so much at products to reduce environmental impacts. While pollution problems have been mastered quite successfully through the use of cleaner processes at the production site, product-integrated environmental innovations still seem to suffer from poor market incentives. Our estimation results based on a binary probit model indicate that the de- terminants of environmental product innovations are quite similar to those of process innova- tions. This might be explained by the.
