Do Eco-Innovations Boost Entrepreneurship Development?

Abstract :

In an entrepreneurship development, not only the system, structure and strategy are of paramount importance, but also the entrepreneurial culture. Entrepreneurs all around the world have continuously helped improve the global economy. The paper is aimed to identify the relationships between countries performance in eco-innovations implementations and indicators of enterprises development in the EU-28 countries. Set of dependent variables includes indicators of business units’ quantity (existing and new enterprises), indicators of financial potential of enterprises development (investment and capitalization parameters), indicators of added value, created in national economy and indicators of employment structure. Set of independent variables is presented by Eco-Innovation Index and its structural components that illustrate inputs, activities, outputs, socio-economic and resource efficiency outcomes of eco-innovation practices. Research period covers 2010-2016. Calculations are realized with using random-effects GLS regression in Stata software package and intended at testing the following hypotheses: 1) intensification of the process of eco-innovation implementation is associated with a decrease in the number of enterprises due to enhancing requirements for their competitiveness; 2) the effects of progress in implementing eco-innovation are reflected in increasing the country's investment attractiveness and increasing company capitalization; 3) eco-innovation reduces the share of value added created by the real sector of the national economy; 4) implementation of eco-innovation has a positive impact on employment in entrepreneurship; 5) the impact of eco-innovation on entrepreneurship development is differentiated depending on the country's overall level of eco-innovation progress.