Eco-Innovation Through Integration, Regulation and Cooperation: Comparative Insights from Case Studies in Three Manufacturing Sectors

This paper analyses the role of integration of environmental aspects with corporate strategy in private firms as well as institutional factors relating to market demand, cooperation and regulation as antecedents for eco-innovations. Using a framework based on evolutionary economic concepts, the paper derives results from analysing nine case studies and finds that the realization of eco-innovation is often an activity originating at the micro-level that however requires simultaneous integration of environmental aspects with the overall corporate strategy. Furthermore, market demand is identified as a crucial driver of eco-innovation and regulation as a complementary institutional factor especially for the diffusion of eco-innovation. Ultimately, the paper identifies issues of path-dependency at the firm level that so far have been insufficiently taken into account by policymaking bodies.