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The paper aims at providing specific evidence on the quite unexplored area of SME (Small-Medium Enterprises) strategies concerning environmental and techno-organisational innovations dynamics. The objective is to analyse what innovation drivers, with a particular focus on environmental innovations, are spurring SME labour productivity, the principal source of firm competitiveness. Results show that training and organisational innovations are the main “non environmental” significant drivers, operating effects through various different elements. The role of mere process/product innovation is instead not relevant. Environmental strategies appear to impact positively on firm productivity even with a short lag. Environmental R&D rarely available as a measure in eco-innovation studies- re-integrates into the picture the role of technological innovation inputs. Environmental policy-related costs do not seem to exert any negative effect on performances, as possibly expected. As a whole, comprehensive innovative SME strategies seem to effectively impact on firm performances both through organisational innovation levers and new eco-innovation strategies.JEL Codes: Q2, L60, Q13, O31