European assessment of support for eco-innovation: Impacts over firm performance

Abstract

This work uses a sample of 63303 European firms, which answered the Community Innovation Survey (CIS) for the period 2012-2014, to relate the eco-innovation strategies implemented as well as the factors able to justify their introduction with firm performance, measured through turnover and employment growth. A mixed-effects regression model was implemented in order to derive results from the estimations, whereas at the same time some statistical evidence was presented. Results point that not all eco-innovation strategies implemented increase firm performance, nor even the factors able to justify these introductions are the most effective to justify firm performance increases. Eco-Innovations related with extended product life through longer lasting, more durable goods, have a positive impact on turnover growth and employment. Firms seem to have introduced eco-innovations mostly due to existing environmental regulations, to improve the enterprise reputation, and due to the high cost of energy, water or materials. On the other side, government grants, subsidies or other financial incentives for environmental innovations and the need to meet requirements for public procurement contracts are the factors that European firms consider most irrelevant.