The eco-innovation and environmental performance of the EU 27 countries

 

By eco-innovation the use of natural resources is reduced and the release of harmful substances across the whole life-cycle decreased. The eco-innovation term has broadened from a traditional understanding of innovating where the main target was to reduce the environmental impacts towards innovating in order to minimise the use of natural resources in the design, production, use, re-use and recycling of products and materials. Technological innovation alone is not sufficient to enable the transition of Europe into a sustainable economy; there is a need for systemic innovations. The understanding of eco-innovation has thus broadened to include a focus on resource and energy efficiency taking into account a full life-cycle perspective.

 

Is important to understand the efficient use of material resources, such as fossil fuels, minerals, metals, and biomass because its human use (and over-use) is linked to the most prominent environmental problems today, as the climate change, furthermore Europe’s dependence on materials imported from abroad is increasing, and reducing resource use offers a significant business opportunity to reduce costs. According to the recent Eurobarometer survey, 75% of businesses in manufacturing, construction, agriculture, water and food services reported an increase in the cost of materials in the past 5 years.

 

The survey of the eco-innovation performance of the EU 27 countries was performed against the data available in two surveys of European businesses as the Community Innovation Survey (CIS, 2008) and the Eurobarometer, 2011 survey. The CIS reveals that innovation to reduce energy is more pronounced than innovation to reduce materials in almost all European sectors. The Eurobarometer reveals that process eco-innovation was the most popular type of eco-innovation for companies in the agricultural, water and manufacturing sectors. Companies in the construction sector were more likely to have brought a new product or service to the market, whereas companies in food services tended to implement higher amounts of organisational innovation.

 

In determining the eco-innovation performance of the countries (eco-innovation index) the following criteria was used:

1.eco-innovation inputs:

• total level of financial support for eco-innovation (as % of GDP),
• total R&D personnel and researchers in eco-innovation sectors (% of total employment),
• total value of green early stage investments,

 2. eco-innovation activities:

•  share of firms participating in eco-innovation,

• share of firms implementing eco-innovation-related management systems,

3. eco-innovation outputs: eco-innovation patents,

4. environmental outcomes

• material productivity (GDP/Total Material Consumption),
•  water productivity (GDP/water consumption),
• energy productivity(GDP/gross inland energy consumption),
• GHG emissions intensity (CO2e/GDP),

 5. socio-economic outcomes:

• employment in eco-innovation industries,
• size of eco-innovation markets,
• exports of eco-innovation products,

 

Ranking the EU 27 countries according to their eco-innovation and environmental performance

 

Country	Eco-innovation index	Material productivity	Energy productivity	Water productivity	CO2 emission
Finland	1	26	26	18	24
Denmark	2	24	17	12	19
Germany	3	10	19	14	17
Austria	4	20	18	16	15
Sweden	5	18	25	17	3
Belgium	6	13	24	21	20
Holland	7	2	23	10	21
United Kingdom	8	4	14	11	16
Ireland	9	27	16	-	25
Spain	10	16	11	23	11
Italy	11	6	10	27	10
France	12	7	20	19	8
Luxembourg	13	8	27	-	27
Slovenia	14	25	15	-	13
Czech Republic	15	15	21	15	23
Portugal	16	19	4	24	7
Hungary	17	3	7	7	5
Malta	18	1	3	22	4
Cyprus	19	22	13	25	22
Latvia	20	21	2	6	1
Bulgaria	21	14	6	13	12
Estonia	22	23	22	-	26
Greece	23	11	9	26	18
Poland	24	12	5	8	14
Romania	25	17	1	20	2
Slovakia	26	5	12	-	9
Lithuania	27	9	8	9	6

 

As can be observed the high ranking eco-innovation index countries has a slight environmental performance, therefore no model EU country can be chosen. Hungary environmental performance can be considered as good, but the eco-innovation performance is medium.

 

Ranking the EU 15 countries according to the CO2 emission

 

Country	Eco-innovation index	Material productivity	Energy productivity	Water productivity	CO2 emission
Sweden	5	18	25	17	3
Portugal	16	19	4	24	7
France	12	7	20	19	8
Italy	11	6	10	27	10
Spain	10	16	11	23	11
Austria	4	20	18	16	15
United Kingdom	8	4	14	11	16
Germany	3	10	19	14	17
Greece	23	11	9	26	18
Denmark	2	24	17	12	19
Belgium	6	13	24	21	20
Holland	7	2	23	10	21
Finland	1	26	26	18	24
Ireland	9	27	16	-	25
Luxembourg	13	8	27	-	27

 

 Ranking the EU 12 countries according to the CO2 emission

 

Country	Eco-innovation index	Material productivity	Energy  productivity	Water productivity	CO2 emission
Malta	18	1	3	22	4
Hungary	17	3	7	7	5
Slovakia	26	5	12	-	9
Latvia	27	9	8	9	6
Poland	24	12	5	8	14
Bulgaria	21	14	6	13	12
Czech Republic	15	15	21	15	23
Romania	25	17	1	20	2
Lithuania	20	21	2	6	1
Cyprus	19	22	13	25	22
Estonia	22	23	22	-	26
Slovenia	14	25	15	-	13

 

According to the 2011 Eurobarometer survey on eco-innovation around 45% of companies have introduced a product, process or organisational eco-innovation in the last two years. Around 4% of eco-innovators declared that the change they have introduced even led to a more than 40% reduction of material use per unit output.

 
 Eco-innovation drivers

 

The most important drivers of eco-innovation according to the Eurobarometer,2011 survey are the current and expected high prices of energy. Every second company that introduced an eco-innovation ranked current (52%) and expected energy prices (50%) as “very important”. High material prices are nearly as significant with 45% of companies indicating high material prices as a very important driver.

 

The eco- innovation driving forces (percent of the companies who considered the driving forces „very important”)

 

	EU 27	EU15	EU12	Hungary
Economic  factors
- expected future increases in energy price	52	51	56	59
- current high energy price	50	50	52	58
- current high material price	45	44	49	48
- secure or increase existing market share	42	41	46	60
- increasing market demand for green products	35	36	36	41
Technological capital
- technological and management capabilities within the enterprise	37	37	40	56
Natural capital
- expected future material scarcity	35	37	29	25
- limited access to material	30	32	27	24
Socio-cultural factors
- good business partners	45	42	54	66
- good access to external knowledge, incl. technology support services	34	34	38	61
- collaboration with research institutes, agencies and universities	19	20	19	15
Regulatory and policy framework
- access to existing subsidies and fiscal incentive	40	38	48	72
- excepted future regulations imposing new standards	36	32	33	40
- existing regulations including standards	30	29	34	43

 

Comparing Hungary position with the EU 27, EU 15 and EU 12 average can be seen that the fields marked with greenl has a higher ranking then the average.