Page 297 - Hojnik, Jana. 2017. In Persuit of Eco-innovation. Drivers and Consequences of Eco-innovation at Firm Level. Koper: University of Primorska Press
P. 297
Conclusion 297
eco-innovative process and amortizes its investment over 10 years would
acquire tax exemptions instead of other grants for the period before the
investment becomes lucrative).
Based on the findings of our study, we summarize the main sugges-
tions for the policy makers. Companies have long seen eco-innovations as
sunk costs and never-ending investments due to the environmental reg-
ulations and standards with which they needed to comply. Eco-innova-
tions were therefore seen as a burden for companies, implemented only
to comply with regulations. Today, however, we can observe a change
in this mindset. Companies have begun to recognize that in eco-inno-
vation lies the potential to acquire several benefits, such as the gain of
competitive advantage and business opportunities. The findings of our
study indicate that companies that implement product, process and/or
organizational eco-innovation can exploit several benefits from it, such
as higher company profitability (with the exception of product eco-in-
novation, for which we found a low but negative association), econom-
ic and competitive benefits and a higher degree of internationaliza-
tion. This indicates that eco-innovations are worthwhile for companies
and do pay off in terms of the previously mentioned outcomes. Regard-
ing the drivers of eco-innovation, the results of our study clearly indi-
cate the prevailing effect of competitive pressure over other determinants
for all three eco-innovation types (product, process and organization-
al eco-innovaton). Competitive pressure seems to be the strongest driv-
ing force of all three eco-innovation types, while noteworthy influences
are also demonstrated by customer demand on product eco-innovation
and customer demand and managerial environmental concern on process
eco-innovation. The rest of the examined determinants, such as the com-
mand-and-control instrument, the economic incentive instrument, and
expected benefits were also found to be effective in triggering eco-inno-
vations, albeit to a lesser degree. These findings suggest an important im-
plication for policy makers. Keeping in mind that companies are most-
ly motivated to eco-innovation implementation by competitive pressure,
customer demand and managerial environmental concern, the environ-
mental policy instruments (both the command-and-control instrument
and the economic incentive instrument) should be adapted. For a success-
ful enforcement of policies, the command-and-control instrument and
the economic incentive instrument should be combined and made more
market-oriented. Pursuing market demand and companies’ needs and in-
cluding them in policy development would greatly contribute to the en-
hanced capacity and performance level of eco-innovations in companies.
eco-innovative process and amortizes its investment over 10 years would
acquire tax exemptions instead of other grants for the period before the
investment becomes lucrative).
Based on the findings of our study, we summarize the main sugges-
tions for the policy makers. Companies have long seen eco-innovations as
sunk costs and never-ending investments due to the environmental reg-
ulations and standards with which they needed to comply. Eco-innova-
tions were therefore seen as a burden for companies, implemented only
to comply with regulations. Today, however, we can observe a change
in this mindset. Companies have begun to recognize that in eco-inno-
vation lies the potential to acquire several benefits, such as the gain of
competitive advantage and business opportunities. The findings of our
study indicate that companies that implement product, process and/or
organizational eco-innovation can exploit several benefits from it, such
as higher company profitability (with the exception of product eco-in-
novation, for which we found a low but negative association), econom-
ic and competitive benefits and a higher degree of internationaliza-
tion. This indicates that eco-innovations are worthwhile for companies
and do pay off in terms of the previously mentioned outcomes. Regard-
ing the drivers of eco-innovation, the results of our study clearly indi-
cate the prevailing effect of competitive pressure over other determinants
for all three eco-innovation types (product, process and organization-
al eco-innovaton). Competitive pressure seems to be the strongest driv-
ing force of all three eco-innovation types, while noteworthy influences
are also demonstrated by customer demand on product eco-innovation
and customer demand and managerial environmental concern on process
eco-innovation. The rest of the examined determinants, such as the com-
mand-and-control instrument, the economic incentive instrument, and
expected benefits were also found to be effective in triggering eco-inno-
vations, albeit to a lesser degree. These findings suggest an important im-
plication for policy makers. Keeping in mind that companies are most-
ly motivated to eco-innovation implementation by competitive pressure,
customer demand and managerial environmental concern, the environ-
mental policy instruments (both the command-and-control instrument
and the economic incentive instrument) should be adapted. For a success-
ful enforcement of policies, the command-and-control instrument and
the economic incentive instrument should be combined and made more
market-oriented. Pursuing market demand and companies’ needs and in-
cluding them in policy development would greatly contribute to the en-
hanced capacity and performance level of eco-innovations in companies.
