Economic Development and Eco-innovation: An Analysis of the Non-linear Relationship in the EU-27

Abstract

Nowadays, eco-innovation is considered the engine for a green path. This paper analyses the relationship between the level of economic development and eco-innovations for the EU-27 countries in the period 2013-2022. Results show an S-shaped curve in the relationship between the two variables in the EU countries: a lower level of GDP per capita implies that eco-innovation growth is monotonically positive or exponential, however, a higher level of economic development shows eco-innovation stagnates.