Totti Könnölä

Resources, capabilities and competences for eco-innovation

AbstractThe existing literature on the determinants for the development and adoption of ecoinnovations has generally focused on analysing the influence of business strategies and external drivers (public policy and stakeholder impacts) on innovation processes in firms. Internal factors to the firm such as resources, capabilities and competences (RCCs), which are important drivers of business strategies and innovation performance, are seldom considered in the literature. This paper builds an integrated framework that incorporates the impact of those firms internal factors and their interactions with external drivers on the development and adoption of eco-innovations. The relevance of those factors regarding several dimensions of eco-innovation is illustrated with case studies. It is shown that, while all RCCs are relevant for the development and uptake of ecoinnovations, their relevance differs across eco-innovation dimensions.

What is eco-innovation?

The scale of environmental problems, coupled with social inequalities and competitiveness challenges within the global economy, have raised increasing awareness of the need to change and renew existing technological production and social behavioural patterns. At best, such awareness may produce innovative responses that gradually move society along a more sustainable path. Analytical tools for such transformation have been developed in the field of environmental management, namely within frameworks such as eco-efficiency,1 industrial ecology2 and design for environment3 and more recently within the concept of eco-effectiveness,4 natural capital and biomimicry.5 Furthermore, the urgency for change has led to increasing application of the term ‘innovation’ in environmental management and policy. Despite the promise of eco-innovations, the term is also used in diverse contexts with different underlying connotations that may eventually diminish its practical value. Most commonly eco-innovation refers to new technologies that improve economic and environmental performance but also some definitions include organizational and social changes for improving competitiveness and sustainability and its social, economic and environmental pillars (see Box 2.1).

System Transition Concepts and Framework for Analysing Energy System Research and Governance

System transitions are complex societal co-evolutionary processes that are typically led by gradual adaptation rather than visionary management or coordination. Still, visionary coordination of policies, regulation, corporate strategies and social learning may overcome some barriers and foster new innovation efforts providing sufficient impetus towards system transition. Building on earlier literature and experiences on system transitions and related research and governance, this paper develops an analytical framework. This framework integrates different transitions phases, levels and dimensions and combines them with the governance functions to provide overarching frames for understanding system transitions. While the framework is developed keeping in mind its application in the Nordic energy system transition research and governance, it may also be applicable in other sectors. For the didactic purposes, the paper applies the framework in the analysis of the three energy sector projects by positioning them in the developed framework. Further in-depth analysis of recent and on-going research and governance efforts may provide a good basis to identify relevant synergies and areas for future developments. Moreover, the use of such an overarching transition framework supports the coordination efforts between many sometimes even controversial efforts in the development of energy systems.

Challenges in transnational research programming: the role of NETWATCH

For Europe to meet the dual objectives of increased competitiveness and addressing societal challenges, joining efforts at all levels in Research and Innovation is high on the policy agenda. The EU can play a role in fostering and facilitating increased collaboration. The NETWATCH information platform on transnational collaboration is among the tools available to support this role. This brief explores the current use and future potential of NETWATCH and other related platforms in guiding and monitoring transnational R&I programming towards increased societal impact and competitiveness. It proposes ways to make better use of existing data, as well as avenues for future development.

Barriers to eco-innovation

Although many potentially significant eco-innovations exist, many of them leading to competitive gains and social and environmental benefits, they are underused, that is, they do not diffuse easily and quickly in the economy. Many factors (barriers and/or absence of drivers) contribute to this.

An Empirical Analysis of Institutional Barriers to European Hydrogen RD&D Cooperation

This paper applies and elaborates environmental and evolutionary theorising in the context of international research, development and demonstration (RD&D) cooperation. The theoretical framework of analysis lays particular emphasis on identifying and overcoming institutional barriers to international cooperation for the RD&D that contributes to radical and environmentally friendly systemic changes, particularly hydrogen technology. The paper can be characterised as empirically based theory-building, as it elaborates the conceptual framework and attests its validity with interview findings and empirically based literature reviews. The empirical analysis is based on the results of HY-CO Era-Net interviews with government officers of national funding agencies responsible for the coordination of ERA-Net programmes.

On Foresight Design and Management: A Classification Framework for Foresight Exercises

The gradual paradigm shift in innovation research and policy from linear to systemic innovation models has also challenged also the conventional technocratic technology-driven forecasting practices and called for new participatory and systemic foresight approaches (Smits and Kuhlmann 2004). In the 1980s, publicly funded foresight activities were commonly seen as an instrument for assisting in the development of priorities for research and development (R&D) resource allocation (Irvine and Martin 1984). Later on, stakeholder participation and networking have been regarded as increasingly important elements of foresight activities for ‘wiring up’ the multilayered innovation systems both in the public (Martin and Johnston 1999) and private sectors (e.g. Salmenkaita and Salo 2004). Reports from recent foresight projects have, in turn, emphasized the importance of common vision building as a step towards the synchronization of the innovation system (Cuhls 2003). In these developments, the locus of foresight activities has tended to shift from positivist and rationalist technology-focused approaches to the recognition of broader concerns that encompass the entire innovation system, including its environmental, social and economic perspectives. The High Level Expert Group appointed by the European Commission crystallized these trends by defining foresight as follows (European Commission 2002): ‘A systematic, participatory, future intelligence gathering and medium-to-long-term vision-building process aimed at present-day decisions and mobilizing joint action’.

Eco-innovations in practice

The earlier chapters provided background and some practical guidance on how the eco-innovation can be dealt with. However, there are many kinds of eco-innovations and in practice various factors influencing on the innovation process are likely to intertwine in many ways. This led us to an important conclusion. Really understanding eco-innovation and its management and policy require research on individual cases of eco-innovation; learning from the experience. We strongly believe that the effective management and policy of eco-innovation depend much on the understanding of the specific conditions of the innovation. The use of a case study approach is particularly suitable for this purpose, as it is ideal for generating theoretical and pragmatic insights from empirical observations when little is known about a phenomenon and when there is disagreement within the literature.1 More specifically, we decided to conduct multiple cases, since multiple cases can increase the external validity, and, ultimately, the generalizability, of research findings.2