Research and Development (R&D) has often been cited as key to promote the development of clean technologies in both the short and long runs. Robust economic performance for clean technology firms may occur in countries in which R&D is conducted by governments as well as by businesses. The goal of this paper is to examine how private and public R&D affects firm profitability. Utilizing an international data set of clean technology firms, this study finds performance of clean technology firms to be quite favorable when compared to firms in the Morgan Stanley Capital International World Index. The study examines how different countries perform in these industries. Finally, the impact both corporate and public R&D have had on these firms performance is analyzed.
