Measuring Eco-Innovation: Towards Better Policies to Support Green Growth

Green growth strategies thus need to be robust, what requires carefully designed tools. One of the prerequisites is the appropriate green growth measurement framework. It should allow discerning the effectiveness of policies in delivering green growth. This is where this paper tries to offer a new angle by searching for appropriate indicators that can capture different aspects of eco-innovation. Eco-innovation can be defined as innovation that results in a reduction of environmental impact. Country data from the 2008 Community Innovation Survey is used in the analysis. Dataset consist of 14 variables on environmental benefits and motivations. The aim of the presented study is to reduce the number of variables into factors to discover which of available variables form coherent subsets. It is argued here that such approach can help to construct appropriate indicators, that can capture different aspects of eco-innovation, that are crucial from the point of view of policy-making and policy evaluation.