After the appearance of the global financial crisis and the eurozone crisis, politicians in Europe struggle to find strategies in order to enhance economic growth and create jobs. At the same time, the European Union has bound itself to ambitious climate and energy policy targets in the Climate and Energy Package. To address both the economical and the ecological issues there is a stringent need for directed technological change, since without regulation decoupling of economic growth from environmental degradation is impossible. Due to positive and negative externalities, laissez-faire enforces the dominance of the energy end resource intensive technologies and prolongs the unsustainable technological lock-in. The task of this master thesis is to elaborate an approach to foster the innovation and diffusion of low-carbon and resource efficient technologies. Applying the evolutionary innovation approach and relying on the Neo-Schumpeterian theory, we explain the social transitions as a change of the technoeconomic paradigm. In this perspective, sustainability is the emerging paradigm that allows the Austrian eco-tech industry to evolve. In conclusion, a policy mix of both environmental and technology policy is needed to direct technological change towards sustainable economic growth and climate change mitigation in the long run.