Public Funding Dynamics in Clean and Dirty Industries: An Empirical Analysis of the Effects of Eco‐Innovation, Cooperation, and Internationalization Strategies

Over the past two decades, eco‐innovation (EI) has emerged as a priority for both national and international public authorities due to its potential to drive sustainable development and enhance resilience in business and regional contexts. Based on a thorough review of the existing literature, this study assesses the impact of various EI strategies—categorized by their level of proactivity—on the acquisition of public funds and compares them with other key strategies such as R&D cooperation and internationalization, which influence the technical, economic, and market feasibility of innovations. Additionally, it investigates whether the criteria for public funding allocation vary according to the industrial sector, distinguishing between clean and dirty industries identified on the basis of their pollution levels. Using data from the Spanish Technological Innovation Panel (PITEC) from 2009 to 2016, the study shows that companies with more proactive EI strategies achieve higher levels of public funding. In dirty industries, these are the only strategies that facilitate access to public funding. Strategies focused solely on regulatory compliance do not show a significant relationship with the ability to secure public funds. R&D cooperation emerges as a crucial factor that positively impacts public funding levels across industries. Contrary to expectations, adopting internationalization strategies is negatively associated with the granting of public funds in both clean and dirty industries. Robustness tests confirm and expand these findings, offering valuable insights for fiscal policy formulation and helping to allay economic concerns related to EI, cooperation, and internationalization. The results of this study can thus help increase companies' capacity to attract new public funds, offering guidance tailored to their sector of activity.