Diversification of Eco‐Innovation and Innovation Activity of Small and Medium‐Sized Enterprises in the European Union Countries

Abstract

The development of eco‐innovation activities performed by enterprises remains one of the key challenges of sustainable development. In modern economies, the implementation of innovative technological solutions should also take into account performing eco‐innovation activities by enter-prises. The aim of the research was to assess the involvement level of small and medium‐sized enterprises in eco‐innovation activities, regarding the implementation of actions for the effective management of resources and the implementation of sustainable products, against the background of their involvement in innovation activities related to the implementation of product innovations and business processes, as well as the assessment of spatial‐temporal diversity and trends for changes in this regard. The spatial scope of the research addresses 27 European Union countries, and the time scope of the research covers the years 2013–2020. The methods of multivariate statistical anal-ysis, with particular emphasis on classification methods, were used in the research. The main find-ing of the research is the division of the European Union countries into three types of classes, in-cluding the countries assessed as: (1) poor eco‐innovators and moderate innovators; (2) moderate eco‐innovators and poor innovators; and (3) leaders of eco‐innovation and innovation. The con-ducted research shows that SMEs in the European Union countries are much less involved in eco-innovation activities than in innovation ones; the level of involvement in eco‐innovation can be di-vergent from that of involvement in innovation. Moreover, the involvement in eco‐innovation does not show an upward trend.