Analyzing How European Startups Generate Eco-Processes and Eco-Products: Eco-Innovation Implementation, Financial Resources, and Patents

Abstract

Despite the pivotal role of European startups in addressing pressing environmental concerns, the current literature has neglected the dynamic factors that influence startups’ decision-making to implement eco-innovation. This study aims to bridge this gap by exploring the impact of ecoinnovation implementation on eco-processes and eco-products, considering financial resources and patents as mediators. An integrative framework was proposed, focusing on customer demand, expected benefits, and the description of green innovation as the main dimensions influencing European startups’ decisions to implement green innovation. Furthermore, a questionnaire was distributed to European startups to cover all feasible sectors, resulting in 114 valid responses. The methodology used SmartPLS for descriptive statistics and structural equation modeling. The results showed that financial resources mediate the relationship between eco-innovation implementation and eco-processes, while patents do not mediate either relationship. Eco-innovation implementation also directly influences eco-products. In conclusion, financial resources are essential for advancing eco-process improvements in European startups, emphasizing the necessity for targeted financial support mechanisms to stimulate green innovation. Also, the patents’ absence as a mediator suggests a focus on immediate operational benefits over intellectual property. This paper’s implications can inform strategic decisions for policymakers, investors, and entrepreneurs to promote a more sustainable entrepreneurial landscape.