Eco-innovation in Malta

Abstract

Malta is characterised by its small size, its climatological parameters and its long coastline. This sets the context for specific eco-innovation activities to be stimulated and developed not only for local use but also for international replication. Europe is going through difficult economic times which have had their knock on effect on most countries of which Malta is no exception. However, during 2010, GDP registered an increase of 3.2% in real terms and 6.2% in nominal terms. Malta’s Research and Innovation (R&I) strategy, Malta’s draft Energy Policy, Malta’s Operational Programme I as well as the financial incentives offered by Malta Enterprise set the context for the development of eco-innovation within the headline innovation bracket. In fact both Research and Development (R&D) and eco-innovation are recognised as a pillar for Malta’s economic development. Malta ranked in 17th place in the 2011 Eco-Innovation Scoreboard, up a place from last year. This shows that whilst Malta is registering notable progress, it is still catching up on the EU-27 average. Notwithstanding, it ranks 4th amongst the New Member States, a comparative rank worth mentioning. Government R&D outlay in environment and energy is the lowest with respect to the EU-27 in absolute and relative terms. Malta ranks 21st in the percentage of R&D personnel and researchers compared to total employment and fares poorly in the number of registered patents, the number of environmental management systems adopted as well as in the number of academic papers related to eco-innovation. Malta fares positively in the media coverage that it gives to eco-innovation events which demonstrates the growing interest in pursuing this avenue of growth. Malta ranks joint 1st with Luxembourg in material productivity and joint 1st with Ireland in energy productivity. The Water Footprint Network places Malta in 16th place. Renewable Energy, Energy Efficiency, Water Resources, Tourism and Public Awareness seem to be the areas where most of the potential for eco-innovation lies. Malta’s dependency on imported fossil fuels, its scarcity of water resources, the newly available water resource resulting from full treatment of sewage prior to disposal which can mitigate water scarcity and the economic impact of tourism are the main factors which drive eco-innovation to focus on these areas. Malta’s incentives schemes could also be a catalyst to foster further growth. Although it has been identified that Malta is still in the early stages of tackling eco-innovation a focus on more tangible deliverables is required. Whilst its limited size and resources make it a country where replication activities are more easily grown, the innovative capacity needs to grow further. Malta’s human resources are considered to be of very high quality and it is therefore only logical to target efforts towards increasing this pool with a view to retain a competitive edge in the skills to cost ratio of such an important human capital asset.