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Europe Daily Bulletin No. 10342
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GENERAL NEWS / (eu) eu/environment

Eco-innovation in SMEs, a remedy

Brussels, 22/03/2011 (Agence Europe) - A Eurobarometer study published on Tuesday 22 March reveals that 75% of European businesses have been faced with a rise in the cost of materials over the past five years and that 90% of such undertakings expect price increases in the future. In order to tackle this challenge of rising production costs and scarcity of materials, which entail price volatility and jeopardise the competitive position of the businesses concerned, SMEs are looking to eco-innovation for an answer, i.e. products, processes or other solutions that can contribute to environmental protection or a more efficient use of resources. Many businesses, however, are still not fully aware of the potential effects of natural resource scarcity on their future operations.

The results of the study lend weight to the ideas upheld by European Environment Commissioner Janez Potoènik, at a time when the argument used by the Commission to spearhead the EUROPE 2020 strategy is that of more efficient use of resources. “What we are seeing is certainly a change in the right direction, but we need to move from evolution to revolution in our attitude to resources. A more efficient use of resources is a must for businesses. Eco-innovation is a way of turning this challenge into an opportunity”, the commissioner commented. The Commission will present a new action plan for eco-innovation by the summer with a view to helping businesses invest in this area.

The survey on the “attitudes of European entrepreneurs towards eco-innovation” (Eurobarometer No 315) was presented to the tenth European eco-innovation forum (Birmingham, UK) on Tuesday. It was carried out by the Hungarian Gallup poll institute for the Commission's DG Environment. A representative sample of 5,222 SME directors in 27 member states took part in the survey.

  • According to almost one quarter of the business leaders taking part in the survey, the cost of materials makes up 50% or more of the business' total costs. Three-quarters of the respondents affirm that the cost of materials has moderately or dramatically increased over the past five years. More than half of the SMEs surveyed said they had introduced technologies to improve materials efficiency in the past five years as a response to the challenge. Eco-innovations related to processes - as opposed to technologies, products, organisation or marketing - were the most popular in the agricultural, water and manufacturing sectors. Companies in the construction sector preferred to invest in green products or services, whereas food service companies tended to implement higher amounts of organisational innovation.
  • Over 40% of SMEs that have introduced an eco-innovation in the past two years said the investment had reduced material use by up to 20% per unit of output. Most European SMEs see limited access to materials as an important driver for eco-innovation. At the same time, they identify current and expected future price increases for energy as the most important incentives for eco-innovation. More than 70% of SMEs pointed to the need for good business partners and good access to external information and knowledge, including technology support services to accelerate eco-innovation uptake and development. The main obstacles to investment in eco-innovation are linked to economic and financial constraints, and especially to the uncertain demand from the market and the lack of external financing. For results of the survey see: http: //ec.europa.eu/public_opinion/flash/fl_315_en.pdf (A.N./transl.jl)

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