Commitment 18 “Eco-innovation” I3U Project Meeting & Technical Workshop: Vienna, 14. & 15.09.2015 Sandra M. Leitner

Commitment 18 “By early 2011 the Commission will present an eco-innovation action plan building on the Innovation Union and focusing on the specific bottlenecks, challenges and opportunities for achieving environmental objectives through innovation."

Rationale and Objectives Specific policies and actions are needed to: accelerate uptake of eco-innovation remove barriers in order to promote, accelerate and diffuse eco-innovation in society Objectives Pretty vague; more strongly linked to awareness than to hard (quantifiable) objectives Achieve environmentally and socially sustainable growth in the longer run and, indirectly, economic recovery in the short-term

Solution: EcoAP (launched in December 2011 by EC) 7 measures to improve market uptake of EI: environmental policy & legislation as driver for eco-innovation (C15) support demonstration projects & partnering develop new standards (C16) financial instruments & support services for SMEs (C7) promote int’l co-operation support the development of emerging skills and jobs and related training programs to match labour market needs promote eco-innovation through the European Innovation Partnerships (C29)

Related Literature - Summary Drivers of EI (effects depend on type of technology considered): Regulations: (stringency of) regulations (very important); subsidies (less important); Technology push: TC, cooperations & collaborations, cost-saving motive, EMS; Demand pull: expected future demand, expected increase in market shares, customer benefit; Economic effects of EI (by and large, positive!): Higher LP (effect of EI tends to be lower than for other innovations); Higher employment: positive for product eco-innovations, mixed for process eco-innovations; Higher profits & sales growth;

Potential Indicators Name Source Yearly coverage Country coverage GBOARD (by socio-economic objective) OECD Up to 2014 OECD (plus RO) ERDF (priority area: environment) DG-Regio 2000-13 EU-28 Eco-innovation inputs, activities and outputs indices Eco-Innovation Scoreboard 2010-13 Eco-patents EPO Orbis Bureau van Dijk Worldwide CIS-2008 Eurostat (CD or SC) 2006-08 All EU-28 but BE, DK, EL, HR, AT, PL, UK CIS-2014 (available mid-2016) 2012-14 not yet known Flash Eurobarometer No. 315 EC Survey year: 2011 EU-27 (5.222 SMEs)

Direct Impact Assessment – Approach Barriers and Effects of Eco-Innovations Firm-level: LP: CIS-2014, extended CDM-model: differentiate between eco- and non-eco-innovators; Employment: CIS-2014, modified Harrison et al. (2008) approach; Macro-level (necessary?): Growth – another growth equation: with indices from the Eco-Innovation Scoreboard as additional controls;

Commitment Map – C18 Commitment’s rationale Solution Main impact channels Main types of impact Indicators Outcome Achieve environ-mental objectives through innovation EcoAP (2011) 7 measures to improve market up-take: environmental policy & legislation as driver for eco-innovation (C15) support demonstra-tion projects & partnering develop new stan-dards (C16) financial instru-ments & support services for SMEs (C7) promote int’l co-operation support the devel-opment of emerging skills and jobs and related training programs to match labour market needs promote eco-inno-vation through the European Innovation Partnerships (C29) Regulatory pull/push Market-based (taxes, subsidies, tradable permits etc.) Regulatory instru-ments (standards) Economic Stimulate eco-innova-tions (eco-R&D, green jobs) Improved market uptake of eco-innovations More green-HC & know-ledge Input measures Eco-R&D exp. Eco-investments No of green jobs Competitiveness (productivity, exports, market shares) Accelerate market uptake of eco-innovation & remove financial, economic and institutional barriers to promote, accelerate and diffuse eco-innovation in society Intermediate measures Eco-patents Scientific publica-tions Citations No of coop-pro-jects Eco-innovation Social Higher environmental awareness in society Addresses some of the EU’s key societal challenges like: Climate change, resource efficiency Secure, clean & efficient energy Smart, green & integrated transport Technology push Technological capabilities More intense national & int’l cooperation & knowledge transfer Better eco-innov. financing GDP Coordinated policy approach able to tackle failures in the eco-innovation system, create long term favourable conditions for eco-innovation through intervention at a wider EU policy level Output measures No of eco-product, process, organi-zational innovations Employment Demand pull Increased environ-mental consciousness & market demand Environmental Reduced impact on environment (e.g. risk, pollution etc.) Higher resource efficiency of increasingly scarce resources (materials, energy etc.)

Open questions What particular indicator is most useful for NEMESIS? CIS-2014 will only be available mid-2016 Impact on what exactly? Output growth and employment?