Drivers of different types of eco-innovation in European SMEs

In this paper we explore the drivers of different types of eco-innovation in European SMEs. Drawing upon a database of 27 European countries, empirical evidence is found for the different roles of supply-side, demand-side and regulatory factors in encouraging the adoption of different types of eco-innovation. Our empirical strategy consists of the estimation of a trivariate probit model. Our results show that those entrepreneurs who give importance to collaboration with research institutes, agencies and universities, and to the increase of market demand for green products are more active in all types of eco-innovations. Supply-side factors seem to be a more important driver for environmental processes and organizational innovations than for environmental product innovations. The results also show that market share only has a significant positive influence on eco-product and eco-organizational innovations, while cost-savings are solely significant for eco-process innovations. Finally, prioritizing existing regulations shapes eco-product and eco-organizational innovations while expected regulations and access to subsidies and fiscal incentives do not have any significant effect on the decision to eco-innovate in Europe at the firm-level.

[1]  Daniel Kammerer,et al.  The effects of customer benefit and regulation on environmental product innovation.: Empirical evidence from appliance manufacturers in Germany , 2009 .

[2]  Vanessa Oltra,et al.  The dynamics of environmental innovations: three stylised trajectories of clean technology , 2005 .

[3]  M. Frondel,et al.  End-of-Pipe or Cleaner Production? An Empirical Comparison of Environmental Innovation Decisions Across OECD Countries , 2007 .

[4]  Mercedes Bleda,et al.  Graded eco-labels: A demand-oriented approach to reduce pollution , 2009 .

[5]  Stephen P. Jenkins,et al.  Multivariate Probit Regression using Simulated Maximum Likelihood , 2003 .

[7]  Marcus Wagner,et al.  Empirical influence of environmental management on innovation: Evidence from Europe , 2008 .

[8]  Totti Könnölä,et al.  Diversity of eco-innovations: Reflections from selected case studies , 2010 .

[9]  P. González.  Analysing the factors influencing clean technology adoption: a study of the Spanish pulp and paper industry , 2005 .

[10]  D. Pujari,et al.  Green and competitive: Influences on environmental new product development performance , 2003 .

[11]  J. Horbach.  Determinants of Environmental Innovation - New Evidence from German Panel Data Sources , 2006 .

[12]  Thomas Zwick,et al.  The Employment Impact of Cleaner Production on the Firm Level Empirical Evidence from a Survey in Five European Countries , 2001 .

[13]  M. Russo,et al.  Organizational Design and Environmental Performance: Clues From the Electronics Industry , 2005 .

[14]  Michael E. Porter,et al.  Green and Competitive : Ending the Stalemate , 1996 .

[15]  K. Green,et al.  Technological trajectories and R&D for environmental innovation in UK firms☆ , 1994 .

[16]  C. Rammer,et al.  Determinants of Eco-innovations by Type of Environmental Impact: The Role of Regulatory Push/Pull, Technology Push and Market Pull , 2011 .

[17]  Anthony Arundel,et al.  Survey indicators for environmental innovation , 1998 .

[18]  C. Garcés‐Ayerbe,et al.  Are More Innovative Firms Less Vulnerable to New Environmental Regulation? , 2007 .

[19]  Vanessa Oltra,et al.  Determinants and Specificities of Eco-innovations – An Econometric Analysis for the French and German Industry based on the Community Innovation Survey , 2009 .

[20]  Andreas R. Ziegler,et al.  The influence of different characteristics of the EU environmental management and auditing scheme on technical environmental innovations and economic performance , 2006 .

[21]  John Bessant,et al.  Effective Innovation Policy: A New Approach , 1997 .

[22]  Anthony Arundel,et al.  Measuring eco-innovation , 2009 .

[23]  D. Pujari.  Eco-innovation and new product development: understanding the influences on market performance , 2006 .

[24]  Third Edition,et al.  THE MEASUREMENT OF SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES: PROPOSED GUIDELINES FOR COLLECTING AND INTERPRETING INNOVATION DATA , 2005 .

[25]  Ammon Salter,et al.  Investigating the sources of process innovation among UK manufacturing firms , 2006 .

[26]  Michael J. Lenox,et al.  Does It Really Pay to Be Green? An Empirical Study of Firm Environmental and Financial Performance: An Empirical Study of Firm Environmental and Financial Performance , 2001 .

[27]  Totti Könnölä,et al.  (www.interscience.wiley.com) DOI: 10.1002/bse.487 Really Changing the Course: the Limitations of Environmental Management Systems for Innovation , 2022 .

[28]  Daniel Kammerer,et al.  The effects of customer benefit and regulation on environmental product innovation. , 2009 .

[29]  Massimiliano Mazzanti,et al.  Environmental Innovations, Local Networks and Internationalization , 2011 .

[30]  Pablo del Río González,et al.  The empirical analysis of the determinants for environmental technological change: A research agenda , 2009 .

[31]  K. Rennings,et al.  Determinants of environmental product and process innovation , 1999 .

[32]  J. Kratzer,et al.  Is trust really social capital? Knowledge sharing in product development projects , 2006 .

[33]  Julien Labonne,et al.  Why do manufacturing facilities introduce environmental management systems? Improving and/or signaling performance ☆ , 2009 .

[34]  Andreas R. Ziegler,et al.  Integrated Product Policy and Environmental Product Innovations: An Empirical Analysis , 2007 .

[35]  R. Calantone,et al.  Assessing the impact of environmental management systems on corporate and environmental performance , 2003 .

[36]  K. Rennings.  Redefining innovation -- eco-innovation research and the contribution from ecological economics , 2000 .