Friedemann Polzin

Exploring the Role of Servitization to Overcome Barriers for Innovative Energy Efficiency Technologies – The Case of Public LED Street Lighting in German Municipalities

In this paper we analyse the case for public application of LED street lighting. Drawing from the energy services literature and transaction cost economics, we compare modes of lighting governance for modernisation. We argue that servitization can accelerate the commercialisation and diffusion of end-use energy demand reduction (EUED) technologies in the public sector if third party energy service companies (ESCo) overcome technological, institutional and economic barriers that accompany the introduction of such technologies resulting in transaction costs. This can only succeed with a supportive policy framework and an environment conducive towards the dissemination of specific technological and commercial knowledge required for the diffusion process.

Accelerating the Cleantech Revolution: Exploring the Financial MobilisationFunctions of Institutional Innovation Intermediaries

This research article explores the role of innovation intermediaries to accelerate the commercialisation of (clean) technologies. Drawing from the finance and innovation intermediaries literatures we show that financial barriers to eco-innovation can be partly overcome by particular functions of innovation intermediaries which in turn mobilises private finance along the innovation process. Therefore, we empirically evaluate roles and instruments of institutional innovation intermediaries (innovation intermediation, policy support, public-private cooperation, financial instruments). We contribute an intersection of the finance and innovation systems literature, by exploring the ‘financial mobilisation functions’ of innovation intermediaries to address barriers for eco-innovation along the innovation process.

Innovative Procurement Frameworks for Energy Performance Contracting in the UK Public Sector

Procurement Frameworks for Energy Performance Contracting (PFEPCs) simplify the process of negotiating, developing and implementing Energy Performance Contracts (EPCs) with Energy Service Companies (ESCOs). This paper analyses their role in promoting the implementation of cost-effective energy efficiency measures in the UK public sector. Compared to conventional approaches to procuring goods and services involving detailed specifications, PFEPCs translate the challenge of upgrading, retrofitting and replacing energy related equipment and infrastructures into required outputs through functional specifications. The innovativeness of specific PFEPCs often lies less in the diffusion of ‘developmental’ innovative energy efficient solutions, although partner bidding approaches create favourable conditions for innovation. However increasing standardisation and bundling prove successful at lowering transaction cost, which enables ESCOs to address projects which would not be considered in the absence of PFEPsdue to high transaction costs. This particular organisational innovation opens the market up to new approaches to implementing costeffective energy efficiency measures.

Mobilizing Early-Stage Investments for an Innovation-Led Sustainability Transition

To achieve the transition toward a green economy, policy makers are required to redirect abundant financial resources into green tech innovations. Theoretically, policy makers have a menu of options ranging from technology-push support in the invention stage to market-pull mechanisms supporting the commercialization and diffusion of green technologies. This chapter proposes a mix of policies to mobilize early-stage finance for green technologies. To develop this policy package, we considered the menu of available policies from an investor’s and entrepreneur’s point of view. Based on a series of interviews and a survey with entrepreneurs and investors in Sweden and the Netherlands, we conclude that their preferred policy mix would include measures that fit the nature of innovation and overcome the disadvantages of green tech while also addressing barriers to the early-stage investment process in general, such as labor-market rules, intellectual property policy and tax treatment of early-stage investments.

Drivers and Barriers for Municipal Retrofitting Activities Evidence from a Large-Scale Survey of German Local Authorities

Local authorities are key actors for implementing innovative energy efficiency technologies (retrofitting) to reduce end-use energy demand and consequently reduce negative effects of high energy use such as climate change and public budget deficits. This paper reports the results of a large-scale survey of German municipalities assessing drivers and barriers for deploying LED street lighting as an example of innovative retrofits. The results indicate competencies and capacities, transparency of the underlying technology base, and a clear proposition of savings are crucial drivers for municipal retrofitting engagement. Most significant barriers include lack of experience, the tendency to wait for future improvements of innovative energy efficiency technologies, and existing contracts with energy suppliers, manufacturers, or other conventional retrofitting contractors. Investments in municipal competency building (both regarding technologies and procurement) as well as diffusing standard tendering criteria and (public) monitoring their effectiveness are highly recommended to accelerate the municipal modernisation process.

Drivers and Barriers for Renewable Energy Investments in Emerging Countries – The Case of Wind Energy in China, India and Brazil

Developing and emerging countries are gaining importance on the renewable energy stage due to their growth prospects in several areas and a strong investment increase in the recent past. This paper is dedicated to investigating the drivers and barriers to investments in renewable energies in developing countries. It explores these by using a unique dataset of institutional investors comparing wind energy investments in India, China and Brazil (as representatives of the BRICS countries) by means of a case study. Factors affecting the investments of large institutional investors include the legal framework (including policies), the institutional environment (including infrastructure), overarching macro-economic stability (including currency risk) and growth potential.

How cooperation between innovators and investors influences the innovation process

This research article explores the role of intermediaries in government-supported research partnerships. Using an evolutionary approach to innovation, we attempt to show that barriers to (eco-) innovation can be partly overcome and public agencies can leverage their invested money by establishing intense knowledge exchange between innovators and investors. Empirically, we first develop criteria to reduce information asymmetries between innovators and investors and second evaluate functions and instruments of intermediaries to support this process. Theoretically, we contribute to literature surrounding innovation systems as well as entrepreneurial finance, by developing a typology of intermediaries that possesses the competencies and instruments to address systemic failures for (eco-) innovation.