Does corporate social responsibility increase innovation? Evidence from France

The current paper examines how corporate social responsibility (CSR) through three dimensions (social, environmental and governance) could influence technological and non-technological innovations. The study is conducted on a longitudinal dataset of firms listed on the SBF120(1) index between 2005 and 2016. It shows significant associations between CSR performance, particularly social and governance performances, and technological innovations introducing new products. The implementation of new processes is positively and significantly associated with environmental performance. Findings highlight that the three CSR dimensions have significant effects on management innovations. However, they did not influence marketing innovations. Finally, undertaking socially responsible projects does not drive significant changes in R&D strategy, specifically R&D expenditures and the number of hired scientists and experts, but it increases significantly the number of patents.