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Firm-level Green Innovation in Serbia: Key Drivers and Sectoral Insights
Abstract
Green innovation addresses the environmental challenges that companies face while serving as a key driver of sustainable development by integrating environmental, economic and social dimensions. The aim of this study is to identify the main internal and external factors influencing green innovation in companies and to compare the adoption of green innovation in the manufacturing and service sectors. The analysis is based on data from the Community Innovation Survey for Serbia, which covers the innovation activities of companies in the period from 2020 to 2022. Using logistic regression models, the results indicate that the main internal drivers of green innovation in both sectors are firm-specific factors, equipment procurement, business model and process innovation. Among the external drivers, customer demand and rising costs linked to climate change are the most influential. The findings provide a foundation for designing policy measures and strategies to promote green innovation in developing countries.
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