Environmental dynamics and interactions with innovation

Throughout history, environmental dynamics and risks have both necessitated and inspired innovation. In this thesis I explore the interaction between the environment and innovation in four standalone chapters. The first two chapters examine environmental dynamics in the context of climate change adaptation, while the latter two chapters explore how environmental factors can influence inventor productivity. Specifically, in Chapter 1, I examine how flooding affects the development of flood adaptation innovation. Using county-level data from the United States, I focus particularly on the local effect of flooding. Chapter 2 presents a departure from the empirical research methods and explores how climate uncertainty affects the decision-making of inventors for climate adaptation innovation using a real option valuation approach. In Chapters 3 and 4, I focus on exploring environmental factors as possible negative stimulants for innovation. Tracking inventors’ patenting output over time, Chapter 3 empirically examines the influence of temperature variations on inventor productivity, while Chapter 4 explores the impact of air pollution. The findings of this thesis suggest that various environmental factors, particularly amid the growing threat of climate change, continue to shape the development of innovations today.