Abstract
Eco-innovation, as a new business approach that promotes sustainability throughout the product life cycle, is shaping the green transition and the pace of growth. Green growth and decarbonization are strategic imperatives aiming for a high-income economy. To achieve long-term goals, it is necessary to establish a stimulating innovation ecosystem, supported by a developed infrastructure, which can accelerate decarbonization and green growth. European Union countries have made significant progress in shaping the eco-innovation environment, measured by the Eco-innovation Index, which can be a landmark for the countries of the Western Balkans.
In this regard, the focus of the paper is on the analysis of the situation in the countries of the Western Balkans. Decisions taken today influence the Western Balkan ability to meet decarbonization and green growth. The authors investigate how far the Western Balkan countries are along the road to decarbonization, and what remains to be done in the innovation ecosystem in the strategic framework and policy recommendations. The paper will investigate whether Western Balkan countries that have more developed innovation ecosystem measured by the AI Preparedness Index (AIPI) published by International Monetary Fund, achieve greater Green Growth and lower Global Greenhouse Gas (GHG) total emissions and GHG per GDP emissions. The results obtained from the comparative analysis could be the basis for creating strategic priorities and convergence policies in selected countries in the coming period.