In this paper, technological and managerial innovation are seen as the dual keys to achieving environmental sustainability. Much research on environmental sustainability has focused upon the role of large organisations. Traditionally, they have been perceived as major contributors to environmental degradation and their task is to find innovative solutions to minimise pollution. However, small and medium sized enterprises (SMEs) represent more than 80% of enterprises operating throughout Europe and this identifies them as significant contributors to environmental problems. This paper, based upon the findings of two research projects funded by the European Commission, focuses on SMEs' potential to innovate environmentally and the role they can play in minimising industry's environmental impact. It identifies the barriers, motivating factors and benefits experienced by SMEs and places emphasis on effective networking as a support for environmental innovation

No abstract

The EU Eco‐Management and Audit Scheme (EMAS) reflects the increasing emphasis that is being given to voluntary environmental regulation. Although this approach is generally welcomed as a complement to command and control regulation, concerns remain about the level of voluntary participation. The findings are presented of a pilot study in Italy which sought to examine the prospects for EMAS in small‐ and medium‐sized enterprises in the chemical industry.