Profitable Participation: Technology Innovation as an Influence on the Ratification of Regulatory Treaties

Abstract

What explains variation in the ratification of regulatory treaties? We argue that if international regulation were to create markets for new technologies, innovative companies would support the ratification of the relevant regulatory treaties. Consequently, we expect that technology innovation capabilities have a positive effect on business support for regulatory treaty ratification. We test this theory against data on the ratification of two major multilateral treaties for pesticides control, the 1998 Rotterdam Convention and the 2001 Stockholm Convention. Our case studies and quantitative analyses provide empirical evidence in support of our theory: if a country has a sizable industry capable of biotechnology innovation, it is substantially more likely to ratify each treaty than otherwise. These findings (i) demonstrate that technology innovation is a key ingredient of business support for regulatory treaty ratification, (ii) emphasize the highly contingent nature of constituency preferences for or against regulatory treaties, and (iii) underscore the general importance of technological factors for international cooperation theory.

Keywords: international cooperation, international regulation, treaty ratification, technology innovation, environmental policy

JEL Classification: F02, O33, Q20