Eco-innovation, International Competitiveness and Economic Performance of European Union Enterprises: Triangle Approach

Abstract

Purpose: The paper examines the links between eco-innovation, economic performance and international competitiveness of European Union enterprises. Design/Methodology/Approach: It presents a comparative crosscountry analysis based on the data of representative sample of enterprises from European Union members states from 2012-2014 Community Innovation Survey. The empirical results are based on the Path Analysis. Findings: The results show that the eco-innovation plays an important role in increasing international competitiveness of firms, and has a positive impact on its intellectual property. However, the link between eco-innovation and firms' economic growth is not revealed. Practical implications: Governments' efforts should be directed not only at changing the current eco-regulations, and eco-policies, but also at respective transforming the institutional environment, promoting green education, and shaping citizens' as well as businesses' commitment to sustainable objectives. Originality value: The research points out on the positive link between international competitiveness and firms economic performance. More importantly, we find also evidence that international competitiveness act as a mediating variable between the introduction of eco-innovation and firms economic performance, which is still underdeveloped in the economic literature.