Environmental Innovation as a Strategic Direction for Business Development

Abstract

This article examines the role of environmental innovations in the context of sustainable business development taking into account current global trends. The significance of this topic is that the concept of sustainable development enables companies to generate new ideas and develop innovations that will have a positive impact on the environment. In turn, the adoption of eco-innovations gives even small and medium-sized companies a chance to remain competitive. The aim of the research is to assess the impact of environmental innovations on a company’s competitiveness. The research uses vertical financial analysis and a specific example to demonstrate that funding for environmental innovations is highly significant. The main findings show that the adoption of “green” technologies significantly increases companies’ efficiency and profitability. The results have practical implications for managers and other company employees responsible for long-term strategic development. CZU: 005.591.6:502.131.1; JEL: O31, O38, M21, Q56