The Efficiency of Resource Utilization in EU-28 Countries through Eco-Innovation and Digital Inclusion

Abstract

Innovation has been a historical driver for progress. The need for more effective resource utilization has ignited the presence of many innovations in the economic environment. Among others, digitalization and internet connectivity are important pillars of development. Our paper aims to provide a few insights related to the question “How can we increase the efficiency of resource utilization in EU-28 countries through Eco-Innovation and Digital Inclusion?” This paper examines the issue of innovation related to the use of natural resources (Eco-innovation) as a determining factor in resource consumption in societies with different levels of digital inclusion. Our analysis is based on clustering of EU-28 Member States using three variables: the degree of digital inclusion, the Eco-Innovation Index, and the degree of resource use. We expect digital inclusion to mediate the relationship between eco-innovation and resource utilization. Clustering might reveal how the Eco-Innovation Index, Digital Inclusion Level, and Resource Productivity Index differ among EU-28 Member States and provide relevant information for prioritization of resource allocation at the EU level. Our approach of clustering based on the three variables considered reveals that countries with a better economy present better performance from the point of view of Digital Inclusion in the context of Eco-Innovation and the use of resources.