The influence of eco-innovation on high-performing firms: The dynamics of productivity in the context of circular economy

• David Córcoles ^[1] ; Ángela Triguero ^[1]
  1. [1] Universidad de Castilla-La Mancha

     Universidad de Castilla-La Mancha

     Ciudad Real, España

     
• Localización: European Research on Management and Business Economics, ISSN 2444-8834, Vol. 31, Nº. 2, 2025, págs. 11-26
• Idioma: inglés
• DOI: 10.1016/j.iedeen.2025.100275
• Enlaces
  • Texto completo
• Resumen

  • This paper analyses the influence of eco-innovation on the dynamics of firm performance in the context of a circular economy. From a firm-level approach, we investigate whether firms whose innovation strategies simultaneously aim at significant reductions in material and energy consumption and high environmental awareness (circular eco-innovators) have a higher probability of both reaching (entry) and remaining (persistence) in the group of high-performing firms (top of high-productivity firms). The sample data are from a panel of Spanish manufacturing firms for the period 2003–2016. To deal with endogeneity problems, a two-step methodology is used combining survival models and matching techniques. The results show higher firm productivity for circular eco-innovators at entry and persistence in the upper part of the productivity distribution. The study concludes that circular eco-innovations effectively promote more persistent and resilient performance in Spanish manufacturing firms.

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