Green Innovation and Firm Heterogeneity. Beyond dichotomies between family and non-family firms

This paper examines the differences in green innovation between family and non-family firms. Focusing on the business dimension and firm age as key moderators that influence green patents, it expands the debate on how to detect the role of firm heterogeneity. The analysis uses a comprehensive dataset of patents related to environmental inventions from 4,953 Italian manufacturing firms, observed from 2003 to 2020. For econometric purposes, the study is limited to the years 2003–2018, with patents tracked until their grant in 2022 to account for the lag in patent approvals. Using a three-way interaction equation, results from the zero-inflated negative binomial model offer an articulated depiction, enriching the dichotomous approach to family versus non-family firms. Within this framework, certain family firms, particularly the micro-small and young ones, obtain fewer green patents than their non-family peers. Conversely, large and old firms outperform their non-family counterparts, while the small-medium ones achieve comparable levels of green patents when they age. The results connote that ‘one size does not fit all’ and call for a shift beyond dichotomous classifications in the analysis of ownership and green innovation.