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Faced with rising costs for producing goods and managing waste products, the competitiveness of firms, countries and even regions is increasingly linked to their ability to ‘eco-innovate’. However, very little is known about the growing global trade in environmentally beneficial goods and services as eco-technologies have been largely neglected in economic statistics. Nor do we know much about innovation efforts to reduce environmental impacts. This research brief reports on a recently completed European project to develop a conceptual basis for measuring eco-innovation and to propose guidelines for its practical application by researchers and policymakers.