Empirical Analysis of Environmental Innovations Drivers in Emerging Economies: The Case of Slovenia

Abstract

This study examines the drivers of firm-level eco-innovation in Slovenia, a country that ranks among the best performers in environmental sustainability but faces the challenge of translating its strong environmental framework into widespread adoption of eco-innovation practices at the firm level. The study focused on three areas of eco-innovation, which are the implementation of energy management systems, the adoption of waste minimization and recycling strategies and introduction of measures to control air pollution. These areas were used to investigate the impact of determinants - ten predictor (independent) variables such as own R&D, energy consumption and CO2 emissions, on the adoption of ecoinnovation in 409 Slovenian firms. The analysis shows that CO2 emissions goals and own R&D are crucial for promoting eco-innovation in the country analysed. The findings highlight the importance of investment in R&D and stringent CO 2 emissions goals to promote eco-innovation, while implications for practice include the need to integrate environmental objectives into strategic management, systematically monitor energy consumption, establish an environmental manager and obtain environmental certifications that promote organizational learning and regulatory readiness. This study offers insights for policymakers and business leaders, indicating that tailored strategies and supportive policies can effectively enhance sustainable practices. By improving the environment for eco-innovation, Slovenia can serve as a model for other CEE countries that are striving for sustainability and environmental responsibility.