Determinants of Energy Efficient Innovation: A Systematic Literature Review

Abstract

Engaging firms to generate and adopt energy efficient innovation is crucial for balancing energy needs for sustainable development. In addition, a reduction in energy consumption can address environmental problems and lower production costs by reducing materials and/or energy costs and costs related to compliance with regulations. Considering the lack of systematic reviews focused on the determinants of energy efficient innovation, we address this gap and set forth to enhance the body of knowledge in the field of energy efficient innovation. To achieve the research aim, a systematic literature review and qualitative content analysis were conducted. This study offers two contributions. First, the study distinguishes the determinants of energy efficient innovation in three levels: micro-level, meso-level, and macro-level. According to the findings, the following determinants of energy efficient innovation are highlighted at the micro-level: (1) cost savings; (2) previous experience; (3) technological capabilities; (4) green capabilities; (5) innovation capabilities; (6) knowledge development; (7) organizational innovations; (8) financial resources; (9) investment in tangible assets. Meanwhile, the determinants are distinguished at the meso-level: (1) competitive pressure; (2) customer and provider pressure; (3) external knowledge cooperation; (4) social pressure; (5) voluntary agreements. Finally, the determinants are disclosed at the macro-level: (1) government subsidies; (2) current or future regulation. Second, the study provides insights on the determinants of energy efficient innovation and sets an agenda for future research. The study demonstrates the need for further investigations on the drivers of energy efficient innovation as compared to general eco-innovation.

Exploring the Landscape of Eco-Innovation: A Bibliometric Analysis of Concepts and Trends in the Manufacturing and Shipbuilding Industries

“…These include the business environment, consumer and public perceptions, knowledge-based economies and societies, and the enablers and barriers related to business and social adoption. These studies emphasize reducing the consumption of material and energy resources [73]. However, in [8], there were three additional concepts identical to eco-innovation: environmental innovation, sustainable innovation, and green innovation.…”

An Integrated Approach to Evaluating Eco-Innovation Strategies from the Perspective of Strategic Green Transformation: A Case of the Lithuanian Furniture Industry

“…The evaluation and selection of eco-innovation strategies is a complex process, and such strategic decision involves various multi-level aspects and depends on different factors [61]. Since very little research has been completed to classify the criteria for the evaluation of the eco-innovation strategy alternatives, based on the methodology presented in Section 3, in this study, we classify the criteria and sub-criteria into the following:…”

“…Arguably, the score of 0.40/1.00 is too low to consider for a firm compared to the best strategy in the Lithuanian furniture industry. Cost-related benefits, i.e., cost savings, have been found to be a decisive determinant of eco-innovation adoption [61]. However, eco-innovation cost leadership strategy is not always the best strategy, since to take advantage of eco-innovation product cost leadership strategy, companies are leveraging and highlighting the environmental properties of products in competitive markets, but eco-innovation product cost-leadership strategy is focused on cost reduction related to green product transformation rather than advertising and communicating the novelty of the environmental characteristics of new products.…”

An Energy Culture Maturity Conceptual Framework on Adopting Energy-Efficient Technology Innovations in Buildings

“…According to Ruby [26], Schubert and Stadelmann [27] and Trotta [28], increased adoption of energy-efficient technology innovations in buildings is the most appropriate strategy to reduce energy consumption in buildings. Further, energy consumption reduction through energy efficient innovations provides benefits such as reducing production cost, increasing compliance with regulations and facilitating sustainable development [29]. Therefore, significant diffusion of the widely available energy-efficient technology innovations in buildings has become essential [30,31].…”