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The contemporary world uses fewer materials to produce the same unit of wealth. However, the pressure on natural resources continues to grow in absolute terms due to the magnitude of the growth in production and excess of consumption. This context demand multilevel efforts to implement large scale innovation systems toward sustainability, aiming at a low carbon economy. The context challenges governments, private sectors and the civil society.
A low-carbon economy is focused on the minimization of social and environmental impacts, which pose a threat and, at the same time, an opportunity for the companies. This research seeks a deeper understanding on the dynamic of eco-innovation in the corporate sector, and how this knowledge can contribute to the formulation of public policies. The main purpose of this study is to understand how certain determinants influence the performance of eco-innovation in different sectors.
Technological innovation towards sustainability stands out as an alternative to contribute to the construction of a new low carbon economy. The main drivers of eco-innovation are related to four broad factors: technology, market demand, regulatory push and company specific factors. According to Porter Hypothesis, there is a positive relation between environmental regulation and competitiveness of companies that benefit from cost and risk reduction, as well as differentiation.
It is a qualitative research – multiple case studies as method. Four cases were analyzed from different sectors: Kimberly-Clark, Grupo Sao Martinho, Oxiteno and Scania. Desk review and in-depth interviews were conducted with senior executives. The units of analysis were the main eco-innovation initiative of each company, which has been implemented for more than two years in Brazil.
Market demand and regulatory push are major determinants that influence positively the performance of eco-innovation. On the other hand, the lack of government incentives to reduce the private cost of eco-innovation, and the absence of subsidies to increase of market demand were determinants for the failure or low performance of the initiatives. Companies have technology and capacity. However, market demand also relies on government intervention to foster eco-innovation.
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