The effect of regional factors in the development of eco-innovations in the firm

This research addresses the study of the effect of regional factors in the development of eco-innovations in the firm. We assume the hypothesis of regional heterogeneity, that is, geographical factors and the regional heterogeneity play an important role in determining the innovations in the firms. In this line, we will approach our study from the perspective of regional innovation systems (RISs). Therefore, our research question involves the evaluation of regional factors as determinants of eco-innovation developing in the firm. To examine these questions, the PITEC database that covers the period 2011-2013 was used. Overall, 5,461 firms have been employed for the ordinal logit regression model. This research contributes to the studies of eco-innovation, extending the investigation into drivers of eco-innovation, and highlights the impact that RIS has on the eco-innovative development in the firm. We find that regional interaction and regional characteristics are key elements for the development of eco-innovation in firms. Thus, the density of companies in the region, the regional per capita income, and the existence of financing mechanisms are key elements for the eco-innovative development in the firm.