Eco - Innovation in European SMEs: between Limitation and Possibilities

• Author: Ionica Oncioiu
• Pages: 512-518

European Integration - Realities and Perspectives. Proceedings 2015

512

Eco – Innovation in European SMEs: between Limitation and Possibilities

Ionica Oncioiu1

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 pap er 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, th is paper also provides that eco -innovation is therefore a

powerful instrument, combining reduced negative impact on th e environment with a positive impact on the

economy and society.

Keywords: eco-innovation; SMEs; sustainability

JEL Classification: O32; O33; Q01

1 Introduction

The term eco- 

Fussler and Peter James in 1996. The authors defined the concept as new products and processes that

provide customer and business value while significantly decreasing environmental impacts.

Based on the Oslo Manual and drawing from other authors (e.g. Reid and Miedzinski, 2008; MERIT

et al., 2008), eco-innovation can be described as the implementation of new, or significantly

improved, products (goods and services), processes, marketing methods, organisational structures and

institutional arrangements which, with or without intent, lead to environmental improvements

compared to relevant alternatives.

Based on literature review, various eco-innovation activities can be analysed along three dimensions:

targets (the focus areas of eco-innovation: products, processes, marketing methods, organisations and

institutions); mechanisms (the ways in which changes are made in the targets: modification, redesign,

alternatives and creation); and impacts (effects of eco-innovation on the environment).

1 Professor, PhD, Titu Maiorescu University, Romania, Address: 22 Dâmbovnicului Str., Bucharest 040441, Romania, Tel.

+4 021 316 1646, Corresponding author: nelly_oncioiu@yahoo.com.