Enabling Green Innovations for the Circular Economy: What Factors Matter?

Recent economic theory and international evidence have established that innovations with environmental benefits (green innovations) are crucially important to increase resource efficiency accelerate the transition a circular economy. However, robust empirical on what factors drive green at firm-level is limited inconclusive. To help fill this gap, we designed used unified econometric framework quantify impact of comprehensive set propensity firms introduce benefits. Such include regulations, innovation-inputs, firm-specific characteristics, spillovers from other innovators, public funding, co-operation for innovation activities. We distinguished examined obtained within firm during consumption goods or services by end user. In addition average effects across all firms, also uncovered specific different groups industries. The results indicate in-house R&D, acquisition capital assets enable innovations. These implications designing policies aiming enabling more thus economy sustainable long-term growth.