Eco-innovation analysis with DEA: An application to OECD countries

Government regulations require businesses to improve their processes and products/services in a green and sustainable manner. For being environmentally friendly, businesses should invest more on eco-innovation practices. Firms eco-innovate to promote eco-efficiency and sustainability. This paper evaluates the eco-innovation performance of Organisation for Economic Co-operation and Development (OECD) countries with data envelopment analysis (DEA). Output oriented CCR (Charnes, Cooper and Rhodes) is applied because of more desirability of outputs for decision makers. Data were gathered from the World bank database and global innovation index report. Findings show that for most OECD countries, energy use and ecological sustainability are more important than other inputs and outputs for enhancing eco-innovation.

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