Eco-innovation matters in two ways for small and medium-sized companies (SMEs). First, many SMEs could benefit by introducing eco-innovative approaches into their operations. Second, SMEs, and especially start-ups, can be the ideal incubators for eco-innovation, and can bring to market new, less environmentally damaging products, services and processes.

Reorienting SMEs towards eco-innovation is important because more than 99% of European Union companies are SMEs, covering all sectors, from bakers to booksellers, manufacturers and retailers. SMEs are responsible for two-thirds of private sector employment, and about 60% of EU GDP. Spreading eco-innovative approaches throughout small and medium-sized companies could therefore reap wide-ranging benefits...

Public authorities should define their purchasing goals at a much earlier stage, if they want to use green public procurement (GPP) to boost eco-innovation, according to a European Union funded project.

Instead of waiting until the start of technical procurement processes before they set out eco-innovation criteria, public purchasers should follow the example of initiatives such as Vienna's WienWin programme, according to ECOPOL, a project to analyse and test promising eco-innovation policies and tools. WienWin systematically develops a dialogue with innovative companies on the new ideas that could underpin future products and public services...