Abstract
This paper analyses the main determinants influencing different types of eco-innovations and eco-innovators in Spain. We differentiate between two types of eco-innovations (process vs. product and new-to-the-market (NTM) vs. new-to-the-firm (NTF)) and two different types of ecoinnovators (large vs. small and old vs. new firms). Our findings show that new firms are not more eco-innovative and that smaller firms are certainly less eco-innovative. Although the environmental regulation variable is generally a main driver of eco-innovation, there are specific drivers for some eco-innovator and eco-innovation types. This is the case with internal innovation capabilities, which clearly influence small and new firms to eco-innovate, in contrast to large and old firms. Those capabilities are also a driver of NTM eco-innovation versus NTF eco-innovation. Involvement in external knowledge flows and cooperation is also a crucial variable for small firms to eco-innovate and a main driver of NTM versus NTF eco-innovation. Contrary to expectations, there are a few differential drivers for products vs. process eco-innovations. Energy/material cost reductions and environmental regulation influence both eco-innovation types, whereas the demand-pull from the market is absent for both, probably due to a relatively low degree of environmental consciousness and/or willingness to pay for eco-products by its consumers.
Highlights
There is a widespread consensus that eco-innovation plays a key role in sustainability transitions
Small firms belonging to private companies with foreign equity are more likely to eco-innovate (OWNER). They benefit from the innovation capabilities, financial resources and information flowing from the parent company. These results suggest that lack of internal innovation capabilities and involvement in knowledge networks are a main barrier to eco-innovate by these firms
Our results show that in contrast to what it is generally argued about the lack of financial capability of small firms being a barrier to eco-innovation, neither lack of internal and external funding (NOFUN) nor a poor financial situation (ROEMPLOYEE) are barriers to eco-innovate for small firms with respect to normal innovation
Summary
There is a widespread consensus that eco-innovation plays a key role in sustainability transitions. What is missing in the literature is an analysis of how the relevance of those determinants differs for distinct types of eco-innovators and eco-innovations. It is highly likely that the same determinant does not have the same influence on firms with different characteristics (for example, small vs large eco-innovators). Drivers might differ for types of different eco-innovations (for example, for process vs product eco-innovations). If this is so, and policy-makers want to support one specific type of eco-innovation/eco-innovator, an analysis of those differential determinants is policy-relevant. While the literature on firm-level determinants is wide, the literature on the determinants for different types of eco-innovators and eco-innovations is not, with the possible exception of process vs product eco-innovations.
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