EIRP Proceedings, Vol 10 (2015)

Abstract

During the recent decades many SMEs have started to use the term eco-innovation to describe the contributions of business to sustainable development while improving competitiveness. According to literature review, eco-innovation can be generally defined as innovation that results in a reduction of environmental impact, no matter whether or not that effect is intended. This paper examines whether using eco -innovation is an opportunity for increasing the competitiveness of SMEs at a European level. An empirical study is carried out using data from 112 European SMEs between May 2014 and December 2014 in the following areas: agriculture, manufacturing, environmental industries and construction. The results of this study show that the eco-innovative barriers and engagement in green innovative activities are strongly related to the SME's adoption performance. Moreover, this paper also provides that eco-innovation is therefore a powerful instrument, combining reduced negative impact on the environment with a positive impact on the economy and society.