Micro is beautiful. Adoption of eco-innovations in micro-firms

In Europe, micro-firms contribute significantly to both the economy and the environmental\r\nimpact on ecosystems. Helping them become greener and stimulating innovation\r\ntoward new sustainable and circular solutions could substantially contribute to\r\nthe European goal of achieving carbon neutrality and environmental sustainability, as\r\npromoted by the European Green Deal and Next Generation EU programs. Nevertheless,\r\neco-innovation (EI) by micro-firms is studied little in the literature. In this\r\npaper, we analyze the main determinants of conventional and EI adoption by microfirms.\r\nWe used an ad-hoc survey developed for enterprises in Emilia-Romagna (Italy),\r\nan important region in terms of innovation where micro-firms play a significant role\r\nin the economy. The paper analyzes whether human capital, training, R&D activities,\r\ncollaboration activities to improve learning, and the environmental culture within the\r\nfirm act as main determinants of innovation adoption, in addition to other standard\r\ndrivers and barriers to innovation adoption studied in the extant literature. Moreover,\r\nwe compare innovation adoption strategies between micro-firms and SMEs. While\r\nour results highlight differences in the determinants of EI and conventional innovation\r\nadoption, there are important heterogeneities when it comes to innovation\r\nadoption strategies.