Eco-innovation and market transformation

This paper is an examination of the role of small and medium sized enterprises (SMEs) as agents for eco-innovation and market transformation. Although pressure has concentrated on forcing firms to 'green' their operations, very little attention has been given to policies that could stimulate the growth of 'green' enterprises. This paper reports on a survey of small, UK based companies that have developed and brought to market eco-innovative products or services. They have combined commercial success with environmentally driven innovation, but are limited to niche markets, and face significant external obstacles to becoming mainstream. This research has implications for policy instruments that could enable these small businesses to expand their horizons and thus contribute to the general 'green' transformation of industry.