Net Zero 2050 As An Eu Priroty – Modeling a System for Efficient Investment in Eco Innovation for Climate Change Mitigation

Abstract Background: Study background is based on the fact that the EU recovery plan envisages investing 30% of the huge budget in climate change, with the goal of zero gas emission by 2050. This ambitious plan will require (for now indefinitely) investment in research and innovation. The main objective of the study is to check and analyze the existing and propose a new model of effective investment in eco-innovation, on the basis of which a contribution to effective long-term investment policy, climate change impact and mitigation of consequences will be given. Methods:. The basic methodological tools for solution of the problems discussed in this study were correlation analysis, regression analysis and pared sample t-test. All calculations were performed in the statistical software SPSS 20. Time series data of the selected indicators were obtained from the European Innovation Scoreboard 2020. Database used to collect the data for EU member countries and selected third countries for the conducted analysis is the European Innovation Scoreboard 2020. To avoid sample selection bias, we considered all of the available data for all member countries and selected third countries in European Innovation Scoreboard 2020 for period 2012 to 2019.Results: Results of the study are showing the path which developing countries should direct their inevitable and increasing eco-innovation investments, taking into account the arguments of structural differences in financing R&D. According to European Eco-innovation Scoreboard the best eco-innovation performers are Luxembourg, Denmark, Finland, Sweden and Austria. While countries catching up with eco-innovations are Lithuania, Greece, Estonia, Malta, Croatia, Slovakia, Poland, Romania, Cyprus, Hungary, Bulgaria. Conclusions: Study conclusions are summarized as proposal of appropriate approach of R&D financing model to developing countries with a greater share of eco-innovation and self-sustainable R&D financing for climate preserving products. This study is important as it provides the new evidence on financing R&D investments in leading and developing countries according to Innovation Scoreboards.