Drivers of eco-innovation in the wine industry

Purpose - The importance of eco-innovations for industry has been rising exponentially in recent years. However, even if recent trends show that firms are increasingly committed to eco-innovations, there is little knowledge on why and how companies integrate environmental sustainability into new product development. In this paper we offer a detailed analysis of the drivers of eco-innovation in the wine industry. We account for environmental regulation, demand factors and firm-specific and technology-push factors. Design/Methodology/Approach - The empirical evidence is based on an original questionnaire survey carried out on Italian wine producers. 334 questionnaires were returned and the response rate was of 16.5% and the response rate was of 16.5%. we distinguished between two different types of environmental innovation: cleaner production (CP) and end-of-pipe technologies (EOP). A set of logit and ordered logit models helped in estimating the effects of environmental regulation, demand factors and firm-specific and technology-push factors on CP and EOP innovations. Originality/Value - In this paper we attempt to respond to some recent challenges set in the economic literature adding knowledge on why and how companies integrate environmental sustainability into their production. The analysis of a specific industry and product allows to control for cross-industry differences which are common in other empirical works on eco-innovation. Practical Implications - Our results confirm the importance of regulatory aspects and networking across the supply-chain for eco-innovation. These factors determine to a large extent firms' adoption of an ecological profile. The empirical evidence confirms the appropriateness of the recent developments in the EU agenda with respect to ecoinnovation.