Chapter 2: The drivers of eco-innovations
The Financial Constraints of Eco-Innovation Companies
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The main incentive for innovation activities in companies is generally given by the possibility of achieving higher market shares and more profits. In turn, this is affected by a number of internal-to-company drivers (for example, company size, cost-savings associated with the implementation of innovations and so on) and external-to-company drivers (for example, market characteristics and competitiveness level and so on). However, in the case of EIs, further eco-related external factors should be taken into account, such as the type and effectiveness of environmental policy adopted, the environmental consciousness of consumers and their related preference for environmentally friendly goods and services. This chapter reviews all these aspects discussing the existing theoretical and empirical knowledge about the main drivers of EIs.

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