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John Scott develops, describes, and uses new primary data about US industrial firms' research and development (R&D) investments to create innovative products and processes that provide goods and services without the by-product of pollution. New knowledge about environmental R&D is provided by original surveys of industry from 1993 and 2001. The R&D and other firm data are juxtaposed with US Census industry data and with US Environmental Protection Agency data about industrial toxic releases. This book presents hypothesis tests that provide evidence supporting the use of public policies - described in the book - to stimulate industry to use its creative powers to improve environmental performance. Economists and policy makers in the areas of industrial organization, technological change, the economics of R&D and the environment including policy toward R&D and technology; as well as corporate officers of R&D and environmental affairs will find this volume indispensable.