According to the Porter hypothesis, regulations on environmental
emissions under certain conditions can promote eco-innovation. This is
why the technological innovation systems (TIS) theory sees regulatory
pressure as a major system function critical in the take-off phase. In
other words, the design and timing of any regulation may be decisive for
the regulatory outcome. The research seeks to provide empirical
evidence on how the Baltic Sea Sulphur Emission Control Area (SECA) has
impacted the technological innovation system within the Baltic Sea
Region maritime sectors. The results (1) show that regulatory compliance
gave a knowledge development that has made it possible for clean-tech
companies to engage in entrepreneurial activities that created new
markets, (2) empirically support the TIS theory and the Porter
hypothesis, and (3) provide qualitative evidence on how businesses see
environmental regulation.