Appropriate indicators should be developed in order to better analyse the development of eco-innovation including evolution of environmental technologies' markets. They should also measure the progress made in implementing the Environment Technology Action Plan. Currently, the field of eco-innovation lacks statistics and indicators. The challenge consists very much of trying to combine the two important frames in ecoinnovation development: the innovation chain or system; and environment technology seen in a wider perspective. However, the methods and perspectives applied in innovation indicators are quite different from environmental indicators. Eco-innovation indicators are response-indicators measuring societal progress, supplementing other indicators along the DPSIR chain (Driving forces, Pressures, State, Impact and Response). Also, eco-innovation indicator development is at an early stage, which means the development must be underpinned by research, conceptual development, surveys and assessments. The report discuss key questions like: what kind of indicators do we need, the availability of existing data sources and methods of measuring eco-innovation using patent and R&D statistics; and studies on the environmental industry and their environmental performance. These data sources have so far only to a small extent been applied to eco-innovation analyses. Existing data at Eurostat and eco-innovation statistics within composite indicators at Joint Research Centre – Institute for the Protection and Security of the Citizen are described.