Spatial Distribution of Eco-Innovation Performance: Evidence from European Countries

Abstract

Purpose: The aim of the paper is twofold. Firstly, it attempts to assess the spatial pattern of eco-innovation performance in European countries and to identify economies which are efficient in transforming eco-innovation inputs into outputs. Secondly, it endeavours to examine eco-innovation efficiency distribution and existence of spatial externalities across European countries. Design/Methodology/Approach: The sample consists of 21 European countries. We use two eco-innovations inputs and two eco-innovation outputs to measure eco-innovation performance. To calculate eco-innovation efficiency, we apply DEA method. In our research, mapping and Moran’s I are employed to find the spatial pattern of eco-innovation performance. Findings: The results show that high and medium-high eco-innovation inputs and eco-innovation outputs are mainly concentrated in countries in the Northern and West Central Europe, while low and medium-low eco-innovation inputs and eco-innovation outputs are performed in the East Central and Southern European countries. The findings confirm the presence of a negative spatial autocorrelation process in eco-innovation efficiency. Practical Implications: Identification of the eco-innovation distribution in the spatial scope is undoubtedly of high political importance, as it should enable to adjust policy actions aimed at improving eco-innovation efficiency to spatial characteristics of a given economy. Originality/Value: Since the issue of spatial characteristics of eco-innovation is still not sufficiently explored in the relevant literature, our paper attempts to fill a cognitive and methodological gap in the investigation of the spatial aspects of eco-innovation performance in the European countries.