Towards Sustainable Strategies: Uncovering the Impact of Environmental Policies on Innovation Activities of Czech Firms

Abstract

In recent years, there has been an increased emphasis on sustainable development worldwide, which has prompted governments to adopt environmental policies aimed at mitigating the adverse environmental impacts of economic activities. Among these strategies, the implementation of environmental policies has emerged as a key tool for promoting sustainable development. However, although these policies are created with good intentions, their impact on firms' innovation activities remains a matter of debate and research. The aim of this paper is to examine the impact of environmental policies on the innovation activities of Czech firms, with a particular focus on how these policies shape firms' strategies towards sustainable development. Given the growing emphasis on sustainability and environmental issues, it is necessary to examine how environmental policies can influence firms' overall innovation activities. 412 firms of different sizes were surveyed. And EU emissions trading and energy consumption emerged as the most influential variables with a positive impact.