TARGETING ECO-INNOVATION PERFORMANCE AMONG EU COUNTRIES: CLUSTER OUTCOME

Abstract

An indispensable tool for enhancing economic growth and protecting the environment is eco-innovation, which integrates innovation and sustainable development. By utilizing innovation to address social, economic, and environmental issues, eco-innovation is essential to achieving sustainable development goals. One significant strategy for addressing environmental issues and promoting economic expansion is eco-innovation. Optimizing resource use and promoting efficiency across various sectors, eco-innovation holds significant importance in modern conditions. Eco-innovation represents a proactive approach and leads to positive environmental outcomes. The performance of eco-innovation is a key determinant of its effectiveness in achieving sustainable development goals. Undoubtedly, the European Union’s (EU) policy plan of the past few decades strongly emphasizes eco-innovation. Through initiatives such as the Eco-Innovation Scoreboard, which provides a comprehensive evaluation of eco-innovation performances across EU member states, the EU has been at the forefront of fostering eco-innovation. Eco-Innovation Scoreboards consist of indicators designed to measure various aspects of eco-innovation, used to assess the overall eco-innovation performance of EU member states and to track progress over time. This study examines the average value of eco-innovation performances across EU member states using data from the Eco-innovation Scoreboard. It also presents a comparative analysis of eco-innovation performances across EU member states over two different periods, 2013-2017 and 2018-2022, using indicators including eco-innovation input, eco-innovation activities, eco-innovation output, resource efficiency outcomes, and socio-economic outcomes. Cluster analysis groups EU member states based on their eco-innovation performances, allowing for a comparative assessment of different clusters. The examination evaluates the effectiveness of EU member states in combining innovative practices with sustainable development by focusing on cluster outcomes. The results of the analysis show dynamic changes in eco-innovation performance among EU countries, indicating migration between clusters over time. The observed trends suggest an evolution of priorities and strategies in eco-innovation, which requires adaptive policy responses. Policymakers are advised to adopt flexible and adaptive strategies that take into account the changing performance landscape of eco-innovation and that capitalize on the strengths recognized within each cluster while overcoming identified weaknesses.