Four types of eco-innovation for Baltic firms

Using the Community Innovation Survey data, in this paper we explore the external and internal drivers influencing the four types of eco-innovation in the Baltic manufacturing sector. For this purpose, we estimate a quadrivariate probit model to reveal potential complementarities across the four types of eco-innovation and identify the differences among sectors and countries. The empirical findings show that: i) some factors such as future eco-policies and voluntary actions are significant for most categories eco-innovation; ii) cost saving is the main driver for the eco-process; iii) government grants, subsidies or other financial incentives and current regulation are never significant and finally iv) cooperation is a crucial driving factor for the productive process.