Journal of Cleaner Production 168 (2017) 30e38

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Journal of Cleaner Production

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Review

Eco-innovations in developing countries: The case of Manaus Free

Trade Zone (Brazil)
Pedro Gilberto Aloise a, *, Janaina Macke a, b
a
Graduate Program in Administration at University of Caxias do Sul (UCS), Brazil
b
IMED Business School, Brazil

a r t i c l e i n f o a b s t r a c t

Article history: Innovations focused on sustainability are called in academic papers sustainable innovations, environ-
Received 14 December 2016 mental innovations, eco-innovations or green innovations. This is an emerging subject whose terms and
Received in revised form concepts are still not fully consolidated. In addition, literature review indicates the need to identify the
20 August 2017
challenges to the implementation of eco-innovations in developing countries, especially in resource-rich
Accepted 28 August 2017
Available online 31 August 2017
regions. Such is the case of the Manaus Free Trade Zone (MFTZ) in Brazil. This research aims to identify
factors that promote or inhibit eco-innovations in this context by analyzing the impact of these drivers
and companies' orientation to innovation. This is a case study that aimed at assessing industries of the
Keywords:
Eco-innovation
MFTZ. Data was collected through in-depth interviews, direct observation and analyses of formal
Drivers of eco-innovation documentation. Data collected was analysed through content analysis. The results obtained demon-
Oriented innovation strated despite the region's vocation for environmental issues, initiatives on eco innovations are still
Manaus free trade zone scarce. The companies studied were also dependent on their headquarters, which means that there is
Brazil little concern over local issues and investment in eco-innovations is low. In conclusion, this study makes
a theoretical and practical contribution to research on eco-innovation. Firstly, it analyses drivers of eco
innovation in developing countries, especially in free trade zones. New drivers have been identified and
those presented in previous researches demonstrated that their impact on eco-innovations is less sig-
nificant. Secondly, it provides a panoramic understanding of the main eco-innovation processes as local
condition to develop eco-innovation. Finally, it offers significant insights for researchers and experts who
are challenged by the need to perform sustainability from an eco-innovation point of view (difficulties
and hindrances to eco-innovate).
© 2017 Elsevier Ltd. All rights reserved.

Contents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2. Eco-innovations: conceptualization, typology and drivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3. Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
4. Results and discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
4.1. Drivers of eco-innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
4.2. Local development of eco-innovations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
4.3. Difficulties and hindrances to the development of eco-innovations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
5. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

* Corresponding author.
1. Introduction
E-mail addresses: pedroaloise@hotmail.com (P.G. Aloise), janaina.macke@gmail.
com (J. Macke). An orientation towards sustainable development creates value

http://dx.doi.org/10.1016/j.jclepro.2017.08.212
0959-6526/© 2017 Elsevier Ltd. All rights reserved.
 P.G. Aloise, J. Macke / Journal of Cleaner Production 168 (2017) 30e38
creation for both society and organizations. In an organizational
context, the integration of economic, environmental and social
objectives generates the concept of corporate sustainability, which
is obtained through the adoption of sustainable business strategies.
In short, corporate strategies that promote changes in organiza-
tional culture and gears organizations towards corporate sustain-
ability are the key elements of an orientation of sustainability
commitment (Baumgartner, 2009). The innovations focused on
sustainable issues are referred to in academic papers as environ-
mental innovations, sustainable innovations, eco-innovations or
green innovations.
Studies on eco-innovation are carried out mainly in Europe and
the United States (Diaz-Garcia et al., 2015). Researches in developed
countries suggest that there is a gap in studies about the impacts of
different drivers on different types of eco-innovations (Kesidou and
Demirel, 2012; Triguero et al., 2013; Cai and Zhou, 2014; Diaz-
Garcia et al., 2015). Comments on these findings will be pre-
sented throughout this study.
By presenting insights about eco-innovation from a literature
review, Diaz-Garcia et al. (2015) suggest that further researches in
newly industrialized countries are needed. Kemp and Oltra (2011)
also recommend that studies should be carried out by native re-
searchers, which have a better understanding of eco-innovation
contexts and social processes: Horbach's study on whether eco-
innovations depend on specific regional characteristics concluded
that local and regional eco-innovation elements were neglected
given the lack of appropriate data. The study demonstrated also
that a partnership between research institutions and universities in
underdeveloped regions can help them overcome economic prob-
lems (Horbach, 2014).
The present research seeks to meet these recommendations and
to expand the knowledge about drivers of eco-innovation in Brazil
and, more specifically, in the Amazon, a region known for its huge
natural wealth. Thus, this study will investigate industrial com-
panies of the Manaus Free Trade Zone (MFTZ) which, despite in-
vestments, present unsatisfactory results in terms of innovation
(Kergel et al., 2010).
In addition, the Amazon's natural vocation for sustainability
does not translate into eco-innovation actions: there are still no
significant researches, development and innovation processes
consistent with the region's vocation for agribusiness and bio-
economy (Kergel et al., 2010). As existing literature recognizes
that innovation improves performance of companies, knowing the
focus and guidance adopted by managers of local businesses is
relevant. Positive effects have been recognized on competitiveness
(Porter and Van Der Linde, 1995), environmental and social per-
formance (Sezen and Çankaya, 2013) and business performance
(Cheng et al., 2014).
The Manaus Free Trade Zone conditions stimulate research as
recommended by previous studies on the impacts of different
drivers on different types of eco-innovation (Kesidou and Demirel,
2012; Cai and Zhou, 2014; Diaz-Garcia et al., 2015) in a developing
country (Kemp and Oltra, 2011; Horbach, 2014; Diaz-Garcia et al.,
2015), as is the case of Brazil. This evidence encourages reflection
on how to promote eco-innovations and points out to the following
research question: Which are the eco-innovation drivers and how
they impact the MFTZ?
This research is based on the assumption that organizations’
resources, skills and competencies did not necessarily lead to eco-
innovations. Thus, it is possible that a low occurrence of eco-
innovations was due to limited or nonexistent driving factors,
and/or lack of orientation to innovation.
The relevance of the research is demonstrated in several studies.
A study of drivers of eco-innovations in the United Kingdom pro-
posed that future research should clarify the impact of various
31
drivers of eco-innovations on the different types of environmental
innovation, such as product, process and/or organizational eco-
innovations (Kesidou and Demirel, 2012). A similar idea was pro-
posed in a study on eco-innovation drivers in China that stated
further research should address the impact of various drivers on
specific types of eco-innovation (Cai and Zhou, 2014). In a recent
literature review, the authors referred to Kesidou and Demirel
research (2012) according to which it would be relevant to distin-
guish the impact of different drivers on different measures of eco-
innovation (Diaz-Garcia et al., 2015). Another aspect to be consid-
ered is the degree of importance managers assign to innovation: it
usually displays a higher or lower propensity to innovate (orien-
tation to innovation) and its relationship with the company's per-
formance (Cheng et al., 2014; Doran and Ryan, 2016), as well as
contributing to product innovation (De Tienne and Mallette, 2012)
and the highest innovativeness scores and the greatest financial
success (Stock and Zacharias, 2011).
2. Eco-innovations: conceptualization, typology and drivers
Eco-innovation is a specific characteristic of conventional in-
novations when they are concerned with the environment and
sustainability. Besides the term “eco-innovation”, this type of
innovation can be referred to in the international literature as
“sustainable innovation”, “environmental innovation” or “green
innovation”. The following citation from the “Our Common Future
Report” published by World Commission on Environment and
Development (WCED) highlights the importance of sustainable
innovations:
(…) economic, regulatory, and other environmental measures
could be applied in ways that would result in innovation by in-
dustry. And those companies that did respond innovatively are
today often in the forefront of their industry. They have developed
new products, new processes, and entire plants that use less water,
energy, and other resources per unit of output and are hence more
economic and competitive (WCED, 1987, p.327).
The Organization for Economic Co-operation and Development
(OECD) define eco-innovation as the creation or implementation of
new, or significantly improved, products (goods and services), pro-
cesses, marketing methods, organizational structures and institutional
arrangements which e with or without intent e lead to environ-
mental improvements compared to relevant alternatives (OECD,
2009). The concept of environmentally driven innovations are
patent in the use of words such as “eco”, “environmental”, “sus-
tainable” or “green” together with the term “innovation”. Table 1
presents a sample of such concepts found in the literature.
The literature presents several types of eco-innovations. Cheng
et al. (2014) divide the eco-innovation frontier in external and in-
ternal. The external frontier refers to an organization's “green” and
sustainable activities concerning its relationship with suppliers,
regulatory agencies and market demand. The internal frontier re-
lates to actions geared towards effective and efficient eco-
innovation processes that include management, production and
development of new products.
Cheng et al. (2014) identified other classifications in the litera-
ture. Eco-innovations can be technical, organizational and mar-
keting (Kemp and Arundel, 1998); eco-product, eco-process and
eco-organizational (Horbach, 2008; Triguero et al., 2013).
Although the Oslo Manual does not address eco-innovations, they
are given the same name as conventional innovations. Cheng et al.
(2014) categorize eco-innovation dimensions as: product, process
and organizational.
Eco-product innovations mean new or significantly improved
products with technically improved components and materials
(Pujari, 2006), resulting from advanced eco-technologies that
32 P.G. Aloise, J. Macke / Journal of Cleaner Production 168 (2017) 30e38

Table 1
Sample of Concepts of sustainable, eco, environmental or green innovations identified in the international literature.

SUSTAINABLE DEVELOPMENT/INNOVATION Reference

“… is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It WCED (1987)
contains within it two key concepts:

The concept of 'needs', in particular the essential needs of the world's poor, to which overriding priority should be given; and

The idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and
future needs.
“… the 'common interest' did not necessarily impede growth and expansion though it may have limited the acceptance and diffusion of
technical innovations”.
“… the capacity for technological innovation needs to be greatly enhanced in developing countries so that they can respond more effectively to
the challenges of sustainable development … the orientation of technology development must be changed to pay greater attention to
environmental factors.”
“… Hence the procedures and policies that influence these exchanges must stimulate innovation and ensure ready and widespread access to
environmentally sound Technologies”.
“… Product redesign and technological innovations leading to safer products, more efficient processes, and recycling of raw materials can also
be promoted by a more effective, integrated use of economic incentives and disincentives …”
“… Environmental laws have induced innovation and the development of new control technologies, processes, and products in most industries,
reducing the resource content of growth”;
ECO-INNOVATIONS Reference
‘new products and processes which provide customer and business value but significantly decrease environmental impacts’ Fussler and James (1996)
“… the additional attribute of innovations toward sustainability is that they reduce environmental burdens …” Rennings (2000)
‘the production, assimilation or exploitation of a product, production process, service or management or business method that is novel to the Kemp and Pearson (2007)
organization (developing or adopting it) and which results, throughout its life cycle, in a reduction of environmental risk, pollution and
other negative impacts of resources use (including energy use) compared to relevant alternatives’.
‘ … means the creation of novel and competitively priced goods, processes, systems, services, and procedures that can satisfy human needs Reid and Miedzinski (2008)
and bring quality of life to all people with a life-cycle-wide minimal use of natural resources (material including energy carriers, and
surface area) per unit output, and a minimal release of toxic
‘as innovations which are able to attract green rents on the market.
(…) the concept is closely related to competitiveness and makes no claim on the “greenness” of various innovations. The focus of eco- Andersen (2008)
innovation research should be on the degree to which environmental issues are becoming integrated into the economic process’
‘a new concept of great importance to business and policy makers. It is about innovations with lower environmental impact than relevant Arundel and Kemp (2009)
alternatives. The innovations may be technological or non-technological (organizational, institutional or marketing-based). Eco-
innovations can be motivated by economic or environmental considerations. The former includes objectives to reduce resource, pollution
control, or waste management costs, or to sell into the world market for eco-products’.
Eco-innovations are all measures of relevant actors (firms, politicians, unions, associations, churches, private households) which; Klemmer et al. (1999), and

Develop new ideas, behavior, products and processes, apply or introduce them and Rennings (2000)

which contribute to a reduction of environmental burdens or to ecologically specified sustainability targets.
ENVIRONMENTAL INNOVATIONS Reference
‘as innovations that consist of new or modified processes, practices, systems and products which benefit the environment and so Oltra and Saint Jean (2009)
contribute to environmental sustainability’
GREEN INNOVATIONS Reference
‘a rather pragmatic definition’, stating that it ‘does not have to be developed with the goal of reducing the environmental burden. (…) It does Driessen and Hillebrand (2002)
however, yield significant environmental benefits’
‘as hardware or software innovation that is related to green products or processes, including the innovation in technologies that are involved Chen et al. (2006)
in energy-saving, pollution-prevention, waste recycling, green product designs, or corporate environmental management’

Source: the researchers based on the research bibliographic references.

shortening the product life cycle (Carrillo-Hermosilla et al., 2010).
The environmental impact of eco-products derives more from their
use than their production, such as automobile CO2 emissions or the
disposal of car batteries. The analysis of an eco-product's life cycle
(production, use and disposal) reveals environmental gains
(Christensen, 2011), such as generation of wind power, reduction in
energy consumption, and lower impact of the discarded product.
Eco-process innovations refer to new elements introduced in
production systems to create eco-products, modifying processes
and operating systems, which allow the reduction of unit costs and
the production of new or significantly improved products with less
environmental impact (Negny et al., 2012). According to Rennings
(2000), such innovations are improvements in existing produc-
tion processes or new processes with less environmental impact.
Eco-organizational innovations are related to improvements in
management processes through new eco-friendly practices and
methods that increase an organization performance, support
changes, reduce administrative and storage costs, as well as
improve the work environment (Cruz et al., 2006). Although such
practices do not directly reduce environmental impacts, they
simplify the implementation of eco-processes (Murphy and
Gouldson, 2000). Internal environmental programmes such as
training, product development, learning techniques, environ-
mental improvement groups (Kemp and Arundel, 1998), as well as
administrative renewal of routines, procedures, devices and sys-
tems to produce environmental innovations are also part of orga-
nizational eco-innovation actions (Cruz et al., 2006).
Drivers of eco-innovations originate from internal and external
factors to the organization. Internal factors are resources, capabil-
ities and competencies of an organization, which provide
competitive advantages to its stakeholders. Regulation, political
and institutional aspects, as well as stakeholders’ interference are
classified as external factors. Classification of drivers in internal and
external is generic and broad.
Literature on the determinants of innovation is vast (Bernauer
et al., 2006). Generally speaking, theoretical studies classify
drivers of eco-innovation in the following groups of determinants
(Fig. 1): a) Regulation or Regulatory Push/Pull; b) Technology Push;
c) Market Pull; d) Supply Side; e) Demand Side or Demand Factors;
f) Firm Internal and Specific Factors; g) Institutional and Political
Influences.
Regulation comprise legal instruments, such as “constitutions,
parliamentary laws, decrees, orders, norms, licenses, plans and
even forms of administrative guidance” that enforce obligations or
 P.G. Aloise, J. Macke / Journal of Cleaner Production 168 (2017) 30e38
TECNOLOGY
PUSH
REGULATION
SUPPLY SIDE
DEMAND SIDE
FIRM
INTERNAL
AND SPECIFIC
FACTORS
Source: the researchers based on the research bibliographic references.
Fig. 1. Main groups of drivers of eco-innovations.
constraints (OECD, 1997). Included in this category are environ-
mental laws and regulations and expected future regulations
(Rennings, 2000; Triguero et al., 2013) and standards of occupa-
tional safety and health (Rennings, 2000). Horbach (2008) con-
siders environmental policy (incentive based instruments or
regulatory approaches) as a determinant related to institutional
and political influences. Triguero et al. (2013) includes also the
access to existing subsidies and tax incentives.
Technology Push involves energy and material efficiency,
product quality (Bernauer et al., 2006; Horbach, 2008), product
palette (Rennings, 2000), technological and management capabil-
ities (Horbach, 2008; Triguero et al., 2013; Cuerva et al., 2014),
Environmental Management Systems (EMS) (Horbach et al., 2012),
collaboration with research institutes, agencies and universities,
access to external information and knowledge (Triguero et al.,
2013), collaboration and cooperation with competitors and sup-
pliers, knowledge resources, human skills, provision and access to
finance (Cuerva et al., 2014) and R&D investment (Horbach et al.,
2012).
Market Pull factors in literature are new markets, image,
customer demand and labour costs (Rennings, 2000), competition
and competitiveness (Rennings, 2000; Bernauer et al., 2006),
market share (Rennings, 2000; Triguero et al., 2013) and market
demand for green products (Triguero et al., 2013) or environmen-
tally friendly products (Horbach, 2008; Cuerva et al., 2014).
According to Triguero et al. (2013), Supply Side factors encom-
pass technology push (technological and management capabilities,
collaboration with research institutes, agencies and universities,
access to external information and knowledge) and cost saving
factors (size, material and energy prices).
Demand Side or Demand Factors include expected market de-
mand, social awareness of the need for clean production, environ-
mental consciousness and preference for friendly products
(Horbach, 2008), market share and market demand for green
products (Triguero et al., 2013), corporate social responsibility
(CSR) and customer requirements (Kesidou and Demirel, 2012).
Bernauer et al. (2006) considers Firm Internal and Specific
Factors, the green capabilities (“firm's attitude towards and
knowledge of environmental issues”), green corporate strategies,
such as “the implementation of an environmental management
33
MARKET PULL
ECO-INNOVATION
INSTITUTIONAL
AND POLITICAL
INFLUENCES
system and firm size”.
Institutional and Political Influences consists of “environmental
policy (incentive based instruments or regulatory approaches) and
institutional structure, e.g. political opportunities of environmen-
tally oriented groups, organization of information flow, existence of
innovation networks” (Horbach, 2008).
Recent studies aim at finding drivers of eco-innovations for
specific contexts: (i) cities: Ding and Jianmu (2015) in Wuhan-
China; (ii) regions: Cainelli et al. (2011), Emilia Romagna-Italy;
(iii) countries: Brunnermeier and Cohen (2003) in US
manufacturing industries, Kesidou and Demirel (2012) in British
companies, Horbach et al. (2012) in German companies and Cai and
Zhou (2014) in China; (iv) size of the company: Triguero et al.
(2013) in small and medium-sized European companies; (v) eco-
nomic sectors: Cuerva et al. (2014) in Spanish food and beverage
companies.
The diversity of drivers varies according to the objectives and
specificities of the sectors or countries where the surveys are
applied. Kemp et al. (2013) studied the dynamics of eco-innovation
in the European Union and argued that determinants differ ac-
cording to eco-innovations, countries and sectors.
In spite of the economic importance of the industrial park of the
Manaus Free Trade Zone for the economic activity of Western
Amazon, there are no studies addressing eco-innovation in that
region. This study is an attempt to fill this gap, when researching
the eco-innovation drivers in an area of the Manaus Free Trade
Zone (Brazil).
3. Method
The research method of choice was the case study supported by
Yin (2010) recommendations. According to this author, case studies
gather information about “individual, group, organizational, social,
political, and related phenomena” as well as “complex social phe-
nomena” (Yin, 2010, 24). Concomitantly, the aim of the research is
to identify “how” and “why” a social phenomenon or contemporary
event occurs. Seeking new insights into eco-innovations in the
MFTZ context, the researchers explore a new phenomenon in an
environment where the theme needs further studies.
Observations in loco, document analysis and interviews were
34 P.G. Aloise, J. Macke / Journal of Cleaner Production 168 (2017) 30e38
the data collection tools. Content analysis was used as a data
analysis tool and the main methodological stages followed Flick
(2009) and Bardin (2009) recommendations. They comprise three
main steps: data collection, categorization and consolidation and
interpretation.
Data was collected through semi-structured interview based on

pez (2009) recorded and transcribed ad verbatim (second stage).
Lo
The interview was based on the theoretical background and tested
in a pre-interview session, in which minor adjustments in the order
of the questions and their construction were made (appendix A).
Interviews were applied to directors and managers of each orga-
nization. The average length of the interviews was 58 min. Tran-
scriptions comprise 293 pages.
Stage 3 comprises the identification and selection of the texts
whose answers followed the interview script. The researchers
consolidated the interviewees’ answers to all questions. In the final
stage, answers were analysed and interpreted aiming at the
ordering and presentation of the results.
The case study was designed with 16 companies, government
agencies and universities. Table 2 presents a description of the
profile of the institutions participating in the study.
The results obtained in the interviews adequately present the
eco-innovation scenario in the MFTZ. Respondents are represen-
tatives of government agencies, public universities and research
institutes dedicated to promoting innovation. On the corporate side
there is a national private institution that promotes entrepreneur-
ship and innovation in small and medium-sized enterprises, as well
as large companies of the main industrial sectors of The Manaus
Free Trade Zone.
Table 2
Profile of interviewees in the case study.
Interviewee (E)
1. Science, Technology and Innovation Department
2. Planning and Economic Development Department
3. Coordination of Economic and Business Studies of Superintendency SUFRAMA is responsible for promoting regional development and
of the Manaus Free Trade Zone (SUFRAMA)
4. Dean of Innovation of Federal University of Amazonas (UFAM)
5. Innovation Agency of State of Amazonas University
6. Business Incubator of the State of the Amazonas University (UEA) Responsible for encouraging new businesses (startups)
7. Observatory of Manaus Industrial Park (PIM) of the UEA
8. Coordination of Research and Innovation of the National Institute of Research institute created to realize scientific study of the physical
Amazonian Research (INPA)
9. Department of Technology and Research of Centre for Analysis,
Research and Technological Innovation Foundation (FUCAPI)
10. Motorcycle manufacturer company
11. Electronics manufacturer company
12. Manufacturer of equipment for power generation
13. Manufacturer of cosmetics and health products
14. Manufacturer of concentrates for soft drinks
15. Manufacturer of concentrates for non-alcoholic beverages and
soft drinks
16. Unit of Access to Innovation, Technology and Markets of Brazilian Private entity that promotes competitiveness and sustainable
Micro and Small Business Support Service (UAITM) and the
Amazonas Micro and Small Business Support Service (SEBRAE-AM)
Source: the authors. Company names are kept confidential, according to Confidentiality Agreements.
4. Results and discussion
In this section we present the main conclusions regarding
drivers and determinants, current scenario, and the main obstacles
for the development of eco-innovations in the MFTZ. New drivers
have been identified that are specific to the MFTZ. Some presented
in previous researches demonstrated that their impact on eco-
innovations is less significant.
4.1. Drivers of eco-innovation
Amazonian biodiversity could be the leading factor in the pro-
motion of eco-innovations through the development of products
that make use of biotechnologies, biopharmaceuticals, bio-
cosmetics and phytotherapics (medicinal plants). The many ob-
stacles hindering their development will be addressed below. The
interviewees’ opinions about the theme are exemplified below:
“(…) green innovation can be seen in the State … many com-
panies are developing green technologies … we are competent
in the area of natural resources ( …)” (E1).
“(…) local companies created here … they are seeking in-
novations. They are looking for new products to put on the
market; (…) products that use our biodiversity” (E4).
(…) we are aware of the different ideas on biotech innovation”
(…) (E6).
Description Sector/activity
Government agency responsible for science, technology and State Government Agency
innovation policies
Government agency responsible for Strategic Development Plan State Government Agency
Federal Government Agency
managing the tax incentives of the Manaus Free Trade Zone
Responsible for UFAM innovation activities Federal University
Responsible for UEA innovation activities State University
State University
Analyze and develop technical studies related to industrial policy of State University
State of Amazonas
Institute of research on the
environment and living conditions in the Amazon region, generate Ministry of Science,
and disseminate knowledge and technology, train human resources Technology and Innovation
for the development of the Amazon, establishing a commitment to
sustainable development, protection of the environment and its
ecosystems, expanding studies on biodiversity, social diversity,
forest and water resources.
Institution that develops research and technological services to Non-profit private institute of
increase the competitiveness of companies and organizations in the research
Amazon region.
One of the largest manufacturers in this sector. Japanese multinational
Corporation
One of the largest manufacturers in this sector. Japanese multinational
Corporation
One of the largest manufacturers in this sector German multinational
Corporation
Company that develops products with raw material from the Local medium-size business
Amazon forest.
One of the largest manufacturers in this sector. American multinational
Corporation
One of the largest manufacturers in this sector. American multinational
Corporation
Non-profit private entity
development of micro and small enterprises.
 P.G. Aloise, J. Macke / Journal of Cleaner Production 168 (2017) 30e38
(…) companies feel motivated to develop new technologies;
renewable technologies that use, for example, products that do
not deplete natural resources … (E7).
(…) we have to start thinking about products that … the future
of the Free Zone should depend on local resources, mineral,
animal or plants (…) (E8);
(…) Bio-businesses … they use the forest in a way. Then you can
work with cosmetics, bio-cosmetics, herbal medicines. It's
difficult, but there is a chance we can work with herbal medi-
cines. There is also fruticulture, fish farming, the wood itself if
one could find a mechanism for using it sustainably (…) (E9);
(…) [the company was founded] in 1986, the result of an
observation carried out since university, which was to transform
Amazonian biodiversity into a product … biodiversity and
regional raw materials (E13).
(…) we need to develop solutions that meet the new demands
of the consumption market, which are aligned with the global
issue of environmental policy, sustainable eco-products … Our
biodiversity naturally leads us to see its economic possibilities
(…) (E16).
Biodiversity as a driver of eco-innovation reinforces Hart (1995)
ideas on natural-resource-based theory.
In the future, it appears inevitable that businesses (markets) will
be constrained by and dependent upon ecosystems (nature). In
other words, it is likely that strategy and competitive advantage
in the coming years will be rooted in capabilities that facilitate
environmentally sustainable economic activity-a natural-
resource-based view of the firm (Hart, 1995, p. 991).
Hart (1995) argues that limitations and challenges regarding the
natural (biophysical) environment will boost the development of
the companies’ new resources and abilities.
Regarding regulation as an inducer of eco-innovations, the re-
sults highlight the Manaus Free Trade Zone peculiarities. Legal re-
strictions have no effect on foreign companies, because according
to them “the companies’ requirements are more restricted than
those of state legislation” (E15). This result contradicts somehow
the theory that regulations and environmental policy have a strong
impact and can “force” eco-innovations (Rennings, 2000; Horbach,
2008).
On the other hand, MFTZ tax incentives do not benefit eco-
friendly companies (E3; E7). Triguero et al. (2013) when research-
ing drivers of different types of eco-innovation in European SMEs
concluded that “access to subsidies and tax incentives do not have
any significant effect on the decision to eco-innovation in Europe at
the firm level”. The Basic Production Processes (PPB) legislation,
which establishes the minimum stages of industrialization to be
carried out in the MFTZ, does not foresee the use of regional inputs
(E3; E7). Compulsory use of such inputs would have a positive effect
on the development of sustainable technologies.
Other factors influence the development of eco-innovations,
namely: a) non-refundable resources for research and develop-
ment (E4); b) innovative courses, such as bioprocess engineering,
which focus on the biodiversity of sustainable production processes
(E9); c) development of reverse processes to avoid the waste of the
industrial production contaminates the environment and can be
reused in productive application; (E9); d) improvement of projects
aimed at earning certificates from environmental agencies (E9); e)
environmental certification, carbon credit and renewable processes
(E7); f) competitiveness (E5); g) economic need for business
35
continuity (E6); h) creativity in order to compensate for lack of
resources (E6).
Competitiveness is a market pull driver (Rennings, 2000;
Bernauer et al., 2006). Environmental certification (e.g. ISO
14000) presents a technological aspect related to regulation if
required, because companies can have an Environmental Man-
agement Systems (EMS) that is not certified. Horbach et al. (2012)
states that EMS “seems to be very important, especially for the
introduction of cost-saving, cleaner technologies”.
Research and development fundraising is a driver that cannot be
generally accepted. Cuerva et al. (2014) found conflicting results on
the influence of public subsidies on environmental innovation.
According to the authors, “public subsidies are not relevant for
explaining green innovation”; whereas, Horbach (2008), for
instance, concludes that they have a “positive influence on envi-
ronmental innovation”.
The other drivers found are not directly identified in the liter-
ature. Better qualified projects for obtaining environmental licenses
can be classified as a regulatory push, because it forces organiza-
tions to control their environmental processes.
Since renewable processes have significant links with develop-
ment of new technologies they are considered technology push
drivers.
Training in an innovative course such as bioprocess engineering
can be considered a technology-related driver.
The economic need (need for survival) is a broad and compre-
hensive driver. If related, for example, to cost reduction, it can be a
market pull driver. Creativity, in turn, is generally linked to the
development of new technologies and, in this case, it is a tech-
nology push driver. An attitude or ability to meet market expec-
tations characterises a demand side driver. After the interview
analysis, since it was not possible to identify to which dimension
the interviewees were referring, the authors decided to consider
them an internal factor. These findings are presented in Fig. 1.
The study did not identify demand-side drivers which may be
due to the organizations' profile. As for multinational companies,
analyses of market expectations, environmental awareness and
preferences for environmental products was not the purpose of the
local companies, which focussed exclusively on production. Envi-
ronmental responsibility and business practices originated from
the respective headquarters’ internal policies rather than market
interventions. Regarding regional companies, one of the re-
spondents (E13) stated that “for local entrepreneurs, biodiversity
innovation products are worthless” and that consumer shopping
behavior is influenced mainly by price.
4.2. Local development of eco-innovations
An important characteristic of the Manaus Free Trade Zone is
that the largest companies are part of multinational corporations.
Most of them are electronic, computer and automobile (motor-
cycle) industries. Product development is done in research centres
abroad, where product innovations (E10; E11; E12; E14 E15) are
developed. Only product approval according to the peculiarities of
the country is performed in Brazil (E10, E11, and E12). Asked about
the possibility of product development in Manaus respondent E15
states that it is not viable: “If you are not in a big city it is very
difficult to bring research centres in. It is easier to establish a single
research centre for all industries” (E15).
The research identified two cases of product eco-innovation
developed by local institutions (Pujari, 2006; Carrillo-Hermosilla
et al., 2010). The first experience was that of a company special-
ized in cosmetic and health care products (E13) using biodiversity
resources. It is worth mentioning their plant-based anti-wrinkle
and skin lightener cream (calycophyllum spruceanum) and a plant
36 P.G. Aloise, J. Macke / Journal of Cleaner Production 168 (2017) 30e38
derived anti-inflammatory drug (uncaria tomentosa). The second
case was a research institute (E9) which developed a technology to
reuse diesel oil that contaminated groundwater. Reused diesel fuel
generated energy in communities with deficient electricity supply,
limited the contamination of rivers and reduced acquisition costs of
inputs.
Most eco-innovations observed in the Manaus Industrial Park
are processes (Rennings, 2000; Negny et al., 2012). Among eco-
innovations processes are rainwater harvesting and condensate
reuse (E10); replacement of wooden packaging by returnable steel
containers; elimination of harmful substances such as chromium
and lead (E10); use of renewable energy sources (solar) (E12);
reduction of water and electricity consumption (E12, E14, E15);
reduction of waste emissions (E14); reuse of waste and reduction of
pollutants and use of environmentally friendly gases for equipment
cooling (E15); cold clean-in-place (E15); effluent treatment for
fertilizer production (E15), and packaging recycling (E15).
Organizational eco-innovations identified in content analysis
were reduction of noise and adaptation of LEED-certified environ-
mental buildings (Leadership in Energy and Environmental
Design), an international system of certification and environmental
guidance for sustainable buildings (E15).
Green factory practices (E11) through cooperation for sustain-
able production with suppliers, using green supply chain concept
via a green procurement programme were also identified.
4.3. Difficulties and hindrances to the development of eco-
innovations
Difficulties and hindrances to develop eco-innovations are
related to the disarticulation between the main players of the
innovation process (companies, academia and government
agencies) and economic management, cultural, operational and
political issues.
Disarticulation between companies, government and public
agencies results from the lack of a structured innovation system
and a consolidated innovation model.
(…) the State of Amazonas is about to consolidate the ideal
model of eco-innovation, which a local innovation system (E1).
(…) Brazil does not have a consolidated innovation model. We
cannot be compared with developed countries, where innova-
tion happens in companies. The innovation in Brazil still follows
a linear model, i.e. from university to the company. This linear
model, as opposed to the triple helix, poses difficulties. The
academia's vision is not innovation; it is mostly scientific
research which generates lack of dialogue between companies
and academic circles. Their projects are different: the company's
is profit; the university's is to produce papers. In this dialogue of
the deaf, the government could mediate, but it does not …
because its project is also different. (…) (E9).
(…) academic research today does not aim at serving the market
(…) basic research would still be done … we do have a lot of
researches on the shelf. We would need a direct relationship
with the companies. And here we do not have it. This is changing
with the growth of small companies but our industrial park is a
little distant. They do not have a relationship (E4). The university
has shied away from businesses demands and also from ongoing
official policies (E7).
(…) there is a wealth of academic knowledge production in
biotechnology, but not corporate. This is a very large industrial
park with little or no partnership with academia (E9). It is not
possible to conjure up a dialogue between industrial park
companies and the INPA centre of competitive intelligence. They
are different worlds. They are different territories. There is no
collaboration (E3).
(…) Attempts to combine knowledge and promote joint actions
that are isolated within these institutions. It is unfortunate that
there is not one specifically dedicated to it (E16). The Science,
Technology and Innovation Department is an executive agency
and no autonomy, since it has been united with the Develop-
ment Department. (E1). The State Government and the Federal
Government, that is the SUFRAMA, have not yet been able to
adopt measures to support eco-innovation (E3).
Kergel et al. (2010) had already identified insufficient innovation
results in the MFTZ. The same authors conclude that the region's
natural ability for sustainability through the use of its natural re-
sources and regional potentialities is not reflected in the creation
and development of eco-innovations. Consequently, there are still
no research, development and innovation actions consistent with
the region's agribusiness and bio economic capabilities.
The complexities of innovation processes require the interaction
between agents within the company, but also between companies.
In this model, organizations that do not have enough resources in
order to develop innovations internally can establish partnerships
with a network of other companies and organizations (Marinova
and Phillimore, 2003). The interviewees reported a clear lack of
interaction and systemic relationship between institutions which
hinders the development of local eco-innovations projects. Besides,
public sector bureaucracy generates operational difficulties for
research institutions.
Relationship with government agencies is complex. As an
example, delays in the decision-making process (e.g. call for ten-
ders) create financial difficulties to research institutions to main-
tain research teams (E9). “The challenge to innovation within public
universities is to operationalize this process quickly in order to
meet market demands (E4). Bureaucracy is an impediment because
decisions need to “go through various councils and require different
authorizations” (E4).
The researchers identified the following financial obstacles to
eco-innovations: a) high cost of developing sustainable technolo-
gies (E7); b) lack of a business culture focused on eco-innovation
and entrepreneurship (E5); c) logistical difficulties that render
bio-business economically unviable, since the exploitation of nat-
ural resources is based on extractive activities rather than orga-
nized cultivation (E9).
Micro and small businesses do not have management capacity
to capitalize and launch themselves into the market (E9). Conse-
quently, companies cannot structure adequately research projects,
making access to available financial resources impossible (E1).
The lack of specific science and technology policies for eco-
innovation is a major political obstacle (E8). Entrepreneurs lack
knowledge and scientific basis in order to risk eco-innovation
projects (E6); moreover they lack information on how to obtain
non-reimbursable public resources (E1).
Workforce qualification falls short of the developmental needs
of eco-innovations initiatives. The main problems identified were
the inadequacy of curricula and teaching methodologies (E2) and
the low supply of postgraduate programmes focused on the envi-
ronment (E7).
Regarding R & D, there are more basic researches being carried
out than applied ones (E3). Embryonic technologies, which require
testing and applications, end up not happening because of the lack
of support of or integration with the private sector (E4). The lack of
studies on technological trends has a negative impact on attraction
of investments of companies with this knowledge due to the lack of
 P.G. Aloise, J. Macke / Journal of Cleaner Production 168 (2017) 30e38
definitions of public policies (E9). The availability of larger funds for
research could be improved if the Federal Government had not
burdened the resources collected by the Superintendence of the
Manaus Free Trade Zone (SUFRAMA) with administrative service
fees.
The present study does not present great findings regarding the
emphasis on corporate sustainability. The latter applies corporate
strategies that promote changes in the organizational culture that
can gear companies towards corporate sustainability (Baumgartner,
2009).
The reduced sample did not allow the researchers to further
advance in this area. However, interviews with foreign participants
(E10, E11, E12, E14 and E15) revealed some aspects of the sustain-
ability aspects of these corporations. They include collaborative
aspects such as sharing of ideas about product development, pro-
cess, and improvement; problem solving; importance of teamwork;
managers and employees living and practicing beliefs, principles
and values; and receptivity to change.
Collaboration, according to Baumgartner and Ebner (2010) is an
important aspect of the economic dimension of sustainability.
Concomitantly, eco-innovation and sustainability are present in the
mission, vision and goals of these organizations and are important
to the future of the business. The small local company participating
in the study (E13) and the private entity that promotes competi-
tiveness and sustainable development of micro and small enter-
prises (E16) do not have the characteristics of corporate
sustainability presented by the multinational companies.
Finally, one of the respondents (E7) considers the absence of
environmental awareness as a cultural factor related to the “natural
resource syndrome” or “resource curse or paradox of plenty” that
does not stimulate sustainable innovations. Abundance of this type
of resource is not conducive to concern for the environment. In
addition, concepts such as eco-innovation, sustainability and
ecological footprint are not consolidated amongst regional com-
panies (E8).
5. Conclusion
The results can be summarized in three main aspects. The first
concerns the relationship between eco-innovation drivers in the
Manaus Free Zone. The Amazonian biodiversity is one of the po-
tential drivers that may lead to the development of eco-product
innovations, for example, in biotechnology (bio pharmaceuticals,
bio cosmetics, herbal medicines). However, the results highlight
barriers to be overcome. The strictness of environmental legislation
has also been identified as an inductor of eco-innovations, which
can leverage the reverse process of utilization of industrial wastes,
wastewater treatment and recycling, generating new environ-
mental product innovations. In addition, the adoption of the green
factoring concept (sustainable practices in the supply chain) in
partnership with suppliers that avoid harmful environment mate-
rials and methods has been identified as a means of promoting eco-
innovations, especially process innovation.
The second contribution of the study concerns local develop-
ment. There are two contexts very well characterized and distinct.
The first is formed by multinational companies mainly electronics,
information technology and automotive industries. In these cases,
the development of product innovations is done in research centres
at the company headquarters abroad and there is low cooperation
with local authorities in support of eco-innovation. At the other
end, micro and small businesses are based on extractive processes
and have little management capability to develop innovations.
Besides, these small businesses are unable to raise funds in order to
launch their products on the market, which hinders innovations.
Finally, the third main contribution deals with the obstacles and
37
difficulties for the development of eco-innovations. Fundamentally,
the difficulty to develop eco-innovations and innovations is
generally related to the absence of a consolidated innovation
model. In this context, the following issues were identified: (i) lack
of support and incentives; (ii) bureaucratic processes; (iii) lack of
governance; (iv) lack of planning and coordinated actions among
companies, government agencies and academia; and (v) conflicts
among basic research, applied research and markets. Uncertainties
about the country's technology development model - lack of a clear
definition of public policies for innovation - and the lack of studies
on technological trends were also mentioned as factors that hinder
attracting companies and investments. At the same time, regional
development agencies, for political and governance reasons, have
failed to induce eco innovations. A policy focussed on the consoli-
dation of innovation environment in the region is needed. In
addition, logistical difficulties also hinder eco-business.
Beyond the academic contribution, this research aims also to
provide management contributions and insights to policy makers.
Consequently managers from private and public sectors would be
able to define and implement strategies focused on creating eco-
innovations, aiming at economic, environmental and social effec-
tiveness - the triple bottom line of sustainability.
Acknowledgements
This work is being supported by the University of Caxias do Sul
(Universidade de Caxias do Sul - UCS), the Faculty Meridional (Fac-
uldade Meridional e IMED), the National Counsel for Scientific and
Technological Development (Conselho Nacional de Desenvolvimento
Científico e Tecnolo
gico - CNPq) and the Coordination for the
Improvement of Higher Education Personnel (Coordenaça ~o de
Aperfeiçoamento do Pessoal de Nível Superior e CAPES) and Foun-
dation for Research Support of the State of Amazonas (Fundaça ~o de
Amparo a Pesquisa do Estado do Amazonas - FAPEAM) (Decisa ~o 056/
2013) - doctoral fellowship).
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