The aim of this thesis is to investigate the relationship of eco-innovations and competitiveness. Therefore it raises the research question ‘How to increase the rate of diffusion of eco-innovations?. The thesis follows a comprehensive literature research method to answer the research question in four parts. First, determinants of competitiveness of economies and single firms will be analysed. This will show that the overall economic development pathway depends on microeconomic activities. Second, drivers and barriers for eco-innovations will be examined. Especially the double externality problem of eco-innovations (knowledge-spillover effects and external costs of conventional technologies) and firm specific factors (e.g. human capital, financial situation or historic experiences) are the main influencing factors of adopting eco-innovations. Third, a link between competitiveness, eco-innovations and successful commercialization is provided. The concept of conventional as well as sustainable business models will be explained in detail and the concept of business model innovation will be presented. It is shown that sustainable business model innovation is a useful tool to transform a conventional into a sustainable business model. Sustainable business model innovation overcomes barriers and stimulates drivers of eco-innovations. Fourth, key-success factors for sustainable business model innovations will be analysed. Besides product orientated key-success factors particularly adopter related key-success factors (e.g. organisational structure, corporate strategy and leadership) are crucial for the success of sustainable business model innovations.