Drivers of green and non-green innovation: empirical evidence in Low-Tech SMEs

This paper contributes to the empirical literature about the main drivers of eco-innovation in small- and medium-size enterprises (SMEs). In particular, we analyze the differences between the factors influencing “green” and/or “non-green” innovations for SME in a Low-Tech sector based on quantitative analysis. A questionnaire is carried out in the Spanish Food and Beverage Spanish firms to distinguish both types of innovation and test whether their drivers are different or similar. Using regression analysis, we find that technological capabilities such as R&D and human capital foster the conventional innovation but not the green innovation. Moreover, the implementation of Quality Management Systems (QMS) and differentiation explain only the adoption of green innovative activities. In this regard, a higher implementation of voluntary schemes certifications such QMS would be more effective to enhance eco-innovation than public subsidies. Furthermore, a policy recommendation is to reduce the financial constraints for SMEs in order to incentivize eco-innovation.