A survey found that Asian SMEs have a lack of understanding of eco-innovation and more active public engagement about eco-innovation will be needed in Asia.

ASEIC conducted the pilot survey in 2011 to get a better idea of the status of eco-innovation in SMEs in ASEM member countries. The pilot survey used a random sample of 1,180 SMEs across 12 ASEM member countries. The 12 ASEM member countries are China, Japan, India, Indonesia, South Korea and Vietnam in Asia and Austria, Denmark, France, Germany, Italy and the U.K. in Europe. 

In addition, over ten eco-innovation specialists were interviewed from participating member countries as well as other relevant international organizations. This is one of the first research projects undertaken to determine the status of eco-innovation in ASEM member countries.

According to the survey, 39 percent of Asian managers have not heard of eco-innovation, while more than 74 percent of European managers have some level of awareness about eco-innovation.

The same trend was found in management of Asian SMEs. Approximately 3 out of 10 companies in Asia integrate eco-innovation into their management strategy, while 42 percent in the Europe reported having eco-innovation strategy in management.

There was more awareness among policy makers regarding eco-innovation as a growth engine in new, alternative business models for job creation.

When it comes to eco-innovation strategy in SMEs, 29 percent of Asian companies put eco-innovation into their management strategy, while 42 percent of European companies reported having an eco-innovation strategy.

When asked if they had introduced or developed efficient technology in order to decrease raw material and energy cost, 63 percent of the respondents indicated “yes.

In Europe, 78 percent of the SMEs had already introduced and developed efficient technology, whereas only 48 percent of SMEs in Asia had done so.

Regarding policy needs for eco-innovation, both Asian and European companies indicated need for support for green R&D and sharing of best practices.

Although both Asian and European companies indicated improvement of corporate reputation and product image’ as main motivators of eco-innovation, Asian companies were highly interested in government incentives.

Regarding information accessibility, Asian companies showed a more passive approach, requiring a cost-free information source, compared to the active approach of European companies, which tend to use paid consulting.

Regarding obstacles against introduction and implementation of eco-innovation, Both Asian and European SMEs pointed out difficulty in developing original technology, difficulty in assessing products and process reliability and lack of funds in and out their company. Asian companies, in particular, indicated difficulties accessing information and shortage of credible information.

By Seo Jee-yeon  (jyseo@heraldcorp.com)