Article,

SMEs and barriers to Eco-innovation in the EU: exploring different firm profiles

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Journal of Evolutionary Economics, 25 (3): 671-705 (2015)First published online: April 29, 2015, http://dx.doi.org/10.1007/s00191-015-0407-7. (Eurobarometer).
DOI: 10.1007/s00191-015-0407-7

Abstract

Eco-innovation is an explicit aim of major EU policy strategies. Many environmental policies de facto require firms to eco-innovate to comply with policy requirements, while the overlap between policy-driven and market-driven eco-innovation strategies is increasingly important for many firms. Barriers to eco-innovation can then emerge as a critical factor in either preventing or stimulating EU strategies, policy implementation, and the green strategies of firms. In this paper we focus on EU-27 SMEs. We single out and explore different firm profiles, considering eco-innovation barriers and engagement. Our analysis is based on a particularly suitable dataset: the Eurobarometer survey on ``Attitudes of European entrepreneurs towards eco-innovation''. We identify six clusters of SMEs. These clusters include firms facing either `Revealed barriers' or `Deterring barriers', `Cost deterred' firms, `Market deterred' firms, `Non eco-innovators', and `Green champions'. The clusters display substantial differences in terms of eco-innovation adoption. We show that our taxonomy has little overlap with sector classifications. This diversity should be taken into account for successful environmental and innovation policies.

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