Sustainable development through eco-innovation. Empirical evidence from the EU-27 member states
Abstract
Increasing concerns for ensuring a sustainable future generated an imperative need to shift toward a circular economy and sustainable innovations. In this framework, eco-innovation becomes essential for achieving sustainable development. The main purpose of this paper is to focus on a more in-depth, original revealing of the influence of eco-innovation on countries’ sustainable development. Thus, five eco-innovation dimensions, components of the Eco-Innovation Index, are considered for a complete approach. This paper first explores the interaction of the five dimensions within the Eco-Innovation Index. Further, the paper analyses the cumulative effects of the five Eco-Innovation Index dimensions on the 17 Sustainable Development Goals components defined by the United Nations. Considering a panel data set of 189 values for the EU27 Member States for seven years and applying the Structural Equation Model (SEM), this paper emphasizes that only three out of five dimensions perform significantly in the Eco-Innovation Index. Moreover, it proved that the Eco-Innovation Index dimensions contribute to achieving 11 of the 17 sustainable development goals (SDGs). Also, the results highlight that significant relationships were revealed only between certain Eco-Innovation Index dimensions and some SDG components. This paper’s conclusions contribute to a deeper understanding of gaining sustainable development through eco-innovation.
Keyword : circular economy, sustainable development, innovation, eco-innovation, Eco-Innovation Index, Sustainable Development Goals (SDGs)
How to Cite
Sipos, G. L., & Ionescu, A. (2024). Sustainable development through eco-innovation. Empirical evidence from the EU-27 member states. Journal of Business Economics and Management, 25(4), 809–827. https://doi.org/10.3846/jbem.2024.22037
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Reid, A., & Miedzinski, M. (2008). Eco-innovation. Final report for sectoral innovation watch. https://doi.org/10.13140/RG.2.1.1748.0089
Schot, J., & Steinmueller, W.E. (2016). Framing innovation policy for transformative change: Innovation Policy 3.0 (SPRU Working Paper). University of Sussex. https://minciencias.gov.co/sites/default/files/framing_innovation_policy_for_tc.pdf
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Zhang, Q., Yang, M., & Lv, S. (2022). Corporate digital transformation and green innovation: A quasi-natural experiment from integration of informatization and industrialization in China. International Journal of Environmental Research and Public Health, 19(20), Article 13606. https://doi.org/10.3390/ijerph192013606
Borsatto, J. M. L. S., & Bazani, C. L. (2023). Green innovation and environmental and financial performance: Trends and challenges for future research. International Journal of Innovation and Sustainable Development, 17(1/2), Article 152. https://doi.org/10.1504/IJISD.2023.127951
Carrillo-Hermosilla, J., Río González, P. del, & Könnöla, T. (2009). Eco-innovation: When sustainability and competitiveness shake hands. Palgrave Macmillan.
Carrillo-Hermosilla, J., Del Río, P., & Könnölä, T. (2010). Diversity of eco-innovations: Reflections from selected case studies. Journal of Cleaner Production, 18(10–11), 1073–1083. https://doi.org/10.1016/j.jclepro.2010.02.014
Costanza, R., Daly, L., Fioramonti, L., Giovannini, E., Kubiszewski, I., Mortensen, L. F., Pickett, K. E., Ragnarsdottir, K. V., De Vogli, R., & Wilkinson, R. (2016). Modelling and measuring sustainable wellbeing in connection with the UN Sustainable Development Goals. Ecological Economics, 130, 350–355. https://doi.org/10.1016/j.ecolecon.2016.07.009
Council of the European Union. (2017). Eco-Innovation: Enabling the Transition towards a Circular Economy. Ref. 15811/17. http://data.consilium.europa.eu/doc/document/ST-15811-2017-INIT/en/pdf
Curea-Pitorac, R. I. (2018). Ciclicitatea activitatii economice. Factori de influenta a fluctuatiilor ciclice identificate in economia Romaniei. Editura Economica.
Dalampira, E., & Nastis, S. A. (2020). Mapping sustainable development goals: A network analysis framework. Sustainable Development, 28(1), 46–55. https://doi.org/10.1002/sd.1964
Carvalho, A. D. P., Zarelli, P. R., & Dalarosa, B. M. (2018). Eco-innovation typology for incubators. World Journal of Entrepreneurship, Management and Sustainable Development, 14(3), 291–308. https://doi.org/10.1108/WJEMSD-10-2017-0071
Dima, A. M., Maassen, M. A., Janoskova, K., Stamule, S., & Muresan, M. L. (2020). Models of dependencies in innovation in the European Union. Transformations in Business & Economics, 19(2B), 668–686.
European Commission. (2012). Eco-innovation: The key to Europe’s future competitiveness. Luxembourg. https://data.europa.eu/doi/10.2779/4155
European Commission. (2022a). Eco-Innovation Scoreboard. https://ec.europa.eu/environment/ecoap/indicators/index_en
European Commission. (2022b). Eurostat Database. https://ec.europa.eu/eurostat/data/database
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Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink, E. J. (2017). The circular economy – A new sustainability paradigm? Journal of Cleaner Production, 143, 757–768. https://doi.org/10.1016/j.jclepro.2016.12.048
Gente, V., & Pattanaro, G. (2019). The place of eco-innovation in the current sustainability debate. Waste Management, 88, 96–101. https://doi.org/10.1016/j.wasman.2019.03.026
Georgescu, I., Kinnunen, J., & Androniceanu, A.-M. (2022). Empirical evidence on circular economy and economic development in Europe: A panel approach. Journal of Business Economics and Management, 23(1), 199–217. https://doi.org/10.3846/jbem.2022.16050
Gupta, J., & Vegelin, C. (2016). Sustainable development goals and inclusive development. International Environmental Agreements: Politics, Law and Economics, 16(3), 433–448. https://doi.org/10.1007/s10784-016-9323-z
Hák, T., Janoušková,, S., & Moldan, B. (2016). Sustainable development goals: A need for relevant indicators. Ecological Indicators, 60, 565–573. https://doi.org/10.1016/j.ecolind.2015.08.003
Herrera, M. E. B. (2016). Innovation for impact: Business innovation for inclusive growth. Journal of Business Research, 69(5), 1725–1730. https://doi.org/10.1016/j.jbusres.2015.10.045
Hazarika, N., & Zhang, X. (2019). Evolving theories of eco-innovation: A systematic review. Sustainable Production and Consumption, 19, 64–78. https://doi.org/10.1016/j.spc.2019.03.002
Jo, J.-H., Roh, T., Kim, S., Youn, Y.-C., Park, M., Han, K., & Jang, E. (2015). Eco-innovation for sustainability: Evidence from 49 countries in Asia and Europe. Sustainability, 7(12), 16820–16835. https://doi.org/10.3390/su71215849
Kanda, W., Río, P. D., Hjelm, O., & Bienkowska, D. (2019). A technological innovation systems approach to analyse the roles of intermediaries in eco-innovation. Journal of Cleaner Production, 227, 1136–1148. https://doi.org/10.1016/j.jclepro.2019.04.230
Kijek, T., & Kasztelan, A. (2013). Eco-innovation as a factor of sustainable development. Problemy Ekorozwoju – Problems of Sustainable Development, 8(2), 103–112. https://www.researchgate.net/publication/275340604_Eco-innovation_as_a_Factor_of_Sustainable_Development_Ekoinnowacje_jako_czynnik_zrownowazonego_rozwoju
Krakowiak-Bal, A., & Burg, P. (2019). Sustainable development through eco-innovation activities. In A. Krakowiak-Bal & M. Vaverkova (Eds.), Infrastructure and environment (pp. 293–300). Springer International Publishing. https://doi.org/10.1007/978-3-030-16542-0_36
Lamba, H. K., Kumar, N. S., & Dhir, S. (2023). Circular economy and sustainable development: A review and research agenda. International Journal of Productivity and Performance Management, 73(2), 497–522. https://doi.org/10.1108/IJPPM-06-2022-0314
Li, X., Dai, J., He, J., Li, J., Huang, Y., Liu, X., & Shen, Q. (2022). Mechanism of enterprise green innovation behaviour considering coevolution theory. International Journal of Environmental Research and Public Health, 19(16), Article 10453. https://doi.org/10.3390/ijerph191610453
Lorek, S., & Spangenberg, J. H. (2014). Sustainable consumption within a sustainable economy – beyond green growth and green economies. Journal of Cleaner Production, 63, 33–44. https://doi.org/10.1016/j.jclepro.2013.08.045
Mačiulytė-Šniukienė, A., & Sekhniashvili, D. (2021). The eco-innovation impact on economic and environmental performance of EU Member States. Business, Management and Economics Engineering, 19(02), 212–228. https://doi.org/10.3846/bmee.2021.14497
Nowak, M. M., & Szewczyk, Z. (2016). The role of eco-innovation in sustainable business development. Acta Scientifica Academiae Ostroviensis. Sectio A, Nauki Humanistyczne, Społeczne i Techniczne, 8(2), 89–104.
Ostraszewska, Z., & Tylec, A. (2019). Eco-innovation: The profile of Poland in comparison to the European Union. Global Journal of Environmental Science and Management, 5(Special Issue). https://doi.org/10.22034/gjesm.2019.05.SI.23
Reid, A., & Miedzinski, M. (2008). Eco-innovation. Final report for sectoral innovation watch. https://doi.org/10.13140/RG.2.1.1748.0089
Schot, J., & Steinmueller, W.E. (2016). Framing innovation policy for transformative change: Innovation Policy 3.0 (SPRU Working Paper). University of Sussex. https://minciencias.gov.co/sites/default/files/framing_innovation_policy_for_tc.pdf
Schroeder, P., Anggraeni, K., & Weber, U. (2019). The relevance of circular economy practices to the sustainable development goals. Journal of Industrial Ecology, 23(1), 77–95. https://doi.org/10.1111/jiec.12732
Silvestre, B. S., & Ţîrcă, D. M. (2019). Innovations for sustainable development: Moving toward a sustainable future. Journal of Cleaner Production, 208, 325–332. https://doi.org/10.1016/j.jclepro.2018.09.244
Stankevičienė, J., & Nikanorova, M. (2020). Eco-innovation as a pillar for sustainable development of circular economy. Business: Theory and Practice, 21(2), 531–544. https://doi.org/10.3846/btp.2020.12963
United Nations. (2015). Transforming our world: The 2030 agenda for sustainable development. Sustainable development knowledge platform. (n.d.). Retrieved May 2, 2023, from https://sustainabledevelopment.un.org/post2015/transformingourworld
United Nations. (2017). New innovation approaches to support the implementation of the sustainable development goals. United Nations Conference on Trade and Development. United Nations. https://unctad.org/system/files/official-document/dtlstict2017d4_en.pdf
WCED. (1987). Report of the World Commission on Environment and Development: Our Common Future. https://sustainabledevelopment.un.org/content/documents/5987our-common-future.pdf
Wielgórka, D., & Szczepaniak, W. (2019). Eco-innovation of enterprises operating in Poland against the background of EU countries. Global Journal of Environmental Science and Management, 5(SI), 113–121. https://doi.org/10.22034/gjesm.2019.SI.13
Zhang, Q., Yang, M., & Lv, S. (2022). Corporate digital transformation and green innovation: A quasi-natural experiment from integration of informatization and industrialization in China. International Journal of Environmental Research and Public Health, 19(20), Article 13606. https://doi.org/10.3390/ijerph192013606