Eco-innovation Clubs of Convergence: An Analysis of Outputs and Inputs Based on the EU-27

This paper aims to analyse the eco-innovation convergence process across European countries differentiating by green output and input variables. For this purpose, we use data from the eco-innovation index from 2000 to 2020 following the club convergence approach. In the first step, we examine whether there is global convergence and convergence by clubs for our output variables —material efficiency, energy efficiency, and green innovation— and input variables —personnel in R&D and environmental protection—. Results support the club convergence hypothesis for explaining the convergence process in the EU-27 identifying different groups of countries depending on the indicator. Furthermore, in the second step, we compare the patterns obtained by clubs. Results reveal a positive correspondence between groups of countries in the two input variables considered and material efficiency. It also shows a negative link between green innovations and environmental protection expenditure. This paper contributes to the eco-innovation convergence literature by jointly analysing convergence patterns in green input and output variables. In addition, some policy recommendations can be derived from the results such as a specific policy by indicator, a better coordination of policies affecting eco-innovation outputs and inputs, or a more integrated policy approach that aligns environmental protection investments with R&D efforts.