For the past four years, Korea has made contributions to bridging between developed and developing countries in many sectors, ranging from political to business areas. Green growth is one such sector as the nation has taken a leading role globally by adopting green growth as one of its key development strategies for the first time in the world in 2009.

In line with a vision for a green future, the Small and Medium Business Administration under the Ministry of Knowledge Economy has made contributions to drive green growth initiatives for small and medium-sized enterprises in Asia and Europe since it established the ASEM SMEs Eco-Innovation Center, or ASEIC, in June 2011, followed by the endorsement from the eighth summit of the Asia-Europe Meeting, or ASEM, in Brussels, Belgium, in 2010.

ASEM member countries joined together to create ASEIC with the expectation that the center would support their SMEs, a key engine for innovation and growth, by helping them learn what green growth means and how to adopt the future green growth vision to their business.


ASEIC’s vision

The vision for the ASEIC is to promote Asia-Europe cooperation to create and enhance eco-innovation of SMEs in both regions. Eco-innovation, a key drive for green growth, refers to the innovative green solution to advance both environmental and economic sustainability. Eco-innovation has emerged as a significant factor for future growth. Most governments now highly encourage entrepreneurial ideas that tackle both economic and environmental challenges.

The goal of the center is to promote green growth opportunities for SMEs in ASEM member countries. It aims to support the efforts those SMEs in exchanging environmental regulations, sharing the best practices in eco-innovation and promoting green products. Through advisory services, knowledge sharing, and communications, ASEIC serves as an important point of convergence for ASEM governments and SMEs in need of a green transition.


Key activities

To achieve its vision, ASEIC launched eco-innovation consulting services for SMEs in ASEM as its key activity last year. The main goal of eco-innovation consulting is to strengthen the green competitiveness of SMEs by disseminating and utilizing green management and technology in their various businesses. Eco-innovation consulting has a two-pillar program: diagnosis and implementation, and training and education.

ASEIC launched its first eco-innovation consulting project in four Asian countries -- Indonesia, Malaysia, Thailand and Vietnam -- in 2011. The project was designed to promote eco-innovation through enhancing environment-friendly energy efficiency and raising awareness about profitability of green management in business.

The center also built an English website portal to share knowledge in environmental regulations and innovative techniques last year. Visitors to the portal also can share eco-innovation cases in technology, policy and business as well as supply-chain management.

To increase communication and exchange the best policy and business practices among ASEM member countries, ASEIC holds international conferences and forums. The center will co-host the Asia Europe Environment Forum with the Asia Europe Foundation under the topic of "Sustainable Development Assessment: Towards Measurable Goals" from Nov. 21-22 in Singapore. The center also publishes reports on the best examples in eco-innovation and promoting eco-friendly products and appropriate technology.


Challenges ahead

Eco-innovation offers SMEs a huge opportunity to cut costs, expand to new markets, create new jobs and reduce pressure on the environment, thus bridging the goals of maximizing commercial profit and minimizing negative environmental impact. Beyond boosting a firm’s corporate image and profits, riding the tide of eco-innovation enables SMEs to maintain a high level of legitimacy given the emergence of an array of environmental rules and regulations imposed by governments and international organizations.

Eco-innovation is still a new phenomenon and yet, it is expanding quickly across many countries. The greatest challenge among governments is how to spur an enabling environment that allows SMEs to easily explore and pursue their innovative ideas despite the risks.

The most common barriers are the lack of access to finance or venture capital, inadequate information, poor business management skills, and the protection of intellectual property rights. Overcoming these hurdles can empower green SMEs to contribute significantly in reviving the global economy while securing a sustainable future for everyone. 

By Seo Jee-yeon (jyseo@hearldcorop.com)