ASPECTS REGARDING ECO-INNOVATION PRACTICE AND TRENDS FOR A SUSTAINABLE AUTOMOTIVE INDUSTRY

Abstract

Eco-innovation of products, processes and management has a significant positive impact on the circular economy of companies in the automotive and auto parts industry, but, the barriers to innovation may emerge from systemic failures that hinder the flow of knowledge and technology, and reduce the overall efficiency of the system-wide R&D and innovation effort. The potential market and systemic failures suggest that policies for innovation will only be successful if they enhance the performance of the system as a whole, targeting weak links between elements that can hurt performance.