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Does foreign environmental policy influence domestic innovation ? Evidence from the wind industry / Antoine Dechezleprêtre, Matthieu Glachant. Cerna, Feb. 2011, 29 p. (Working Paper 2011-02)http://hal-ensmp.archives-ouvertes.fr/hal-00574108/fr/This paper examines the relative influence of domestic and foreign  renewable energy policies on innovation activity in wind power using  patent data from OECD countries from 1994 to 2005. We distinguish  between the impact of demand-pull policies (e.g., guaranteed tariffs,  investment and production tax credits), as reflected by wind power  capacities installed annually, and technology-push policies (government  support to R&#38;D). We show that inventors respond to both domestic and  foreign new capacities by increasing their innovation effort. However,  the effect on innovation of the marginal wind turbine installed at home  is 28 times stronger than that of the foreign marginal wind turbine.  Unlike demandpull policies, public R&#38;D expenditures only affect  domestic inventors. A simple calculation suggests that the marginal  million dollars spent on R&#38;D support generates 0.82 new inventions,  whereas the same amount spent on the deployment of wind turbines  induces, at best, 0.06 new inventions (0.03 locally and 0.03 abroad) (© Dechezleprêtre &#38; Glachant)