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Increasingly, business leaders are tasked with developing new
products, services, and business models that minimize environmental
impact while driving economic growth. It's a tall order-and a call
that is only getting louder. In Can Business Save the Earth?,
Michael Lenox and Aaron Chatterji explain just how the private
sector can help. Many believe that markets will inevitably demand
sustainable practices and force them to emerge. But Lenox and
Chatterji see it differently. Based on more than a decade of
research and work with companies, they argue that a bright green
future is only possible with dramatic innovation across multiple
sectors at the same time. To achieve this, a broader ecosystem of
players-including inventors, executives, customers, investors,
activists, and governments-all must play a role. The book outlines
how and the extent to which each group can serve as a driver of
green growth. Then, Lenox and Chatterji identify where economic
incentives currently exist, or could exist with institutional
change, and ultimately address the larger question of how far
well-coordinated efforts can take us in addressing the current
environmental crisis.
This volume presents studies from experts in twelve industries,
providing insights into the future role of innovation and
entrepreneurship in driving economic growth across sectors. We live
in an era in which innovation and entrepreneurship seem ubiquitous,
particularly in regions like Silicon Valley, Boston, and the
Research Triangle Park. But many metrics of economic growth, such
as productivity growth and business dynamism, have been at best
modest in recent years. The resolution of this apparent paradox is
dramatic heterogeneity across sectors, with some industries seeing
robust innovation and entrepreneurship and others seeing
stagnation. By construction, the impact of innovation and
entrepreneurship on overall economic performance is the cumulative
impact of their effects on individual sectors. Understanding the
potential for growth in the aggregate economy depends, therefore,
on understanding the sector-by-sector potential for growth. This
insight motivates the twelve studies of different sectors that are
presented in this volume. Each study identifies specific
productivity improvements enabled by innovation and
entrepreneurship, for example as a result of new production
technologies, increased competition, or new organizational forms.
These twelve studies, along with three synthetic chapters, provide
new insights on the sectoral patterns and concentration of the
contributions of innovation and entrepreneurship to economic
growth.
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