---
title: "Do R&D Spillovers Support Low-carbon Transition? Firm-level Evidence from Finnish Energy-intensive Manufacturing"
authors:
  - name: "Kuosmanen, Natalia"
    url: "https://www.etla.fi/henkilot/kuosmanen-natalia/"
    sameAs:
      - "https://orcid.org/0000-0001-5258-5678"
      - "https://scholar.google.com/citations?user=K6U3xEgAAAAJ"
  - name: "Kuosmanen, Timo"
  - name: "Zhou, Xun"
date_published: "2026-02-23"
series: "ETLA Working Papers"
series_number: "136"
issn:
  - "2323-2420"
  - "2323-2439"
jel_codes:
  - "D24"
  - "O33"
  - "Q52"
  - "Q55"
  - "Q56"
language: "en"
publisher: "ETLA Economic Research"
pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-Working-Papers-136.pdf"
keywords:
  - "Carbon dioxide emissions"
  - "Environmental performance"
  - "Green productivity"
  - "Sustainability"
  - "Technology spillovers"
identifier: "https://www.etla.fi/julkaisut/id/ETLA-Working-Papers-136"
abstract: "A structural shift from fossil fuel-based energy systems to renewable, sustainable energy sources critically depends on research and development (R&D) activities at the firm-level. This study examines the contribution of R&D spillovers from other firms to greenhouse gas (GHG) emissions in Finnish energy-intensive manufacturing industries. We link firm-level GHG emissions to financial and innovation data for 230 firms in the pulp and paper, chemicals, non-metallic minerals, and basic metals industries over 2000–2019. We derive emissions-generating functions based on a directional distance function framework, and estimate them using shape-constrained semiparametric regression. Our key result is that R&D spillovers have a strong statistically significant association with the firm-level GHG emissions. However, the signs and magnitudes of the spillovers differ across industries. In the chemical industry, intra-industry R&D spillover is associated with lower emissions, whereas in the pulp and paper and the basic metals industries, intra-industry R&D spillover is associated with higher emissions. These results demonstrate that R&D spillovers do not self-evidently lower emissions, but can also contribute to higher emissions. Our findings also reveal an important channel of inter-industry R&D spillovers through material flows, highlighting the pivotal role of the chemical industry for the GHG abatement in the pulp and paper production and non-metallic minerals industry."
---

# Do R&D Spillovers Support Low-carbon Transition? Firm-level Evidence from Finnish Energy-intensive Manufacturing

**Published:** 2026-02-23  
**Categories:** Working Papers  
**URL:** https://www.etla.fi/sv/publikationer/working-papers-sv/do-rd-spillovers-support-low-carbon-transition-firm-level-evidence-from-finnish-energy-intensive-manufacturing/

#### Abstract

A structural shift from fossil fuel-based energy systems to renewable, sustainable energy sources critically depends on research and development (R&D) activities at the firm-level. This study examines the contribution of R&D spillovers from other firms to greenhouse gas (GHG) emissions in Finnish energy-intensive manufacturing industries. We link firm-level GHG emissions to financial and innovation data for 230 firms in the pulp and paper, chemicals, non-metallic minerals, and basic metals industries over 2000–2019. We derive emissions-generating functions based on a directional distance function framework, and estimate them using shape-constrained semiparametric regression. Our key result is that R&D spillovers have a strong statistically significant association with the firm-level GHG emissions. However, the signs and magnitudes of the spillovers differ across industries. In the chemical industry, intra-industry R&D spillover is associated with lower emissions, whereas in the pulp and paper and the basic metals industries, intra-industry R&D spillover is associated with higher emissions. These results demonstrate that R&D spillovers do not self-evidently lower emissions, but can also contribute to higher emissions. Our findings also reveal an important channel of inter-industry R&D spillovers through material flows, highlighting the pivotal role of the chemical industry for the GHG abatement in the pulp and paper production and non-metallic minerals industry.

---

## Additional Information

**Issn:** 2323-2420, 2323-2439 (Pdf)

**Sarja Nro:** 136

**Sarja:** ETLA Working Papers

**Paivays:** 23.02.2026

**Sivuja:** 34

**Jel:** D24, O33, Q52, Q55, Q56

**Kieli:** en

**Saatavuus:** 2

**Key Words:** Carbon dioxide emissions, Environmental performance, Green productivity, Sustainability, Technology spillovers

**Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Working-Papers-136.pdf

**Kansikuva:** https://www.etla.fi/wp-content/uploads/etla-working-papers-136-kansi.jpg

**Publication Research:** No

65348

**Kirjoittajat:** Kuosmanen, Natalia - Kuosmanen, Timo - Zhou, Xun

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