This research paper will use a specific set of questions on eco-innovation and its contribution to firm growth and competitiveness. This specific set of questions is only available in the German CIS. Using these data we will can more insights on the incentives to perform eco-innovation as well as the impacts on growth. Hence, this provides an empirical underpinning for modeling the growth effects of eco-innovation on the macro-level. The paper also looks at the impact of policy variables as an incentive for eco-innovation. These policy variable include various form of environmental regulation on the production but also on the demand side. Hence, the paper contributes to wwwforEurope by giving detail evidence on how innovation and environmental policy might contribute to the new growth path. This might not only contribute to CGE modelling but also to other work package which empirically deal with the growth impact of "ecological innovation".