Investigating the Regulatory-Push of Eco-innovations in Brazilian Companies

This paper presents eco-innovation as the means of harmonizing economic activities with environmental resilience. Several agents and factors are involved with generation and diffusion of eco-innovations; nevertheless, the role performed by the state, as an inducer of eco-innovation, is crucial. Little is known about the role played by governments in promoting eco-innovations. This work investigates the influence of regulations in generating eco-innovation in Brazil, through a statistical analysis originated by an unprecedented survey carried out with 98 Brazilian enterprises. Results suggest that regulations are keen on promoting organizational and process innovations, with incremental impacts and internalizing environmental externalities that are no longer tolerable by the government. A high number of regulatory-pushed eco-innovations were generated using economic mechanisms, such as funding and subsidies and came out of cooperative arrangements, mostly with suppliers. Regulations could also be influencing high-impact eco-innovations, opening up opportunities to suppliers of cleaner products and services.