Drivers of environmental innovation - Vinnova

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distribution, final customers and disposal chain, is needed to trigger green innovation. Chapter 4 presents the different environmental policy instruments and what is known about their effects on innovation. Three principal categories are discerned: regulatory, economic and communicative instruments. There is no simple answer to which type of instrument is the most advantageous in terms of their effects on innovations. Different instruments seem to drive different types of innovations.The lack of empirical results ensures that we can not comment on the effects on innovation of the different environmental policy instruments used. The empirical results at hand seem to show that most instruments have only had limited effects on innovation. Technology forcing standards may hold the largest potential for radical innovations, but at a large cost to the firms. There are, however, large gaps in the empirical data on many instruments, and other instruments may be as effective. Conclusions Industrial innovations may contribute to shifting society towards sustainable development. For this to happen there is a need for improved environmental policy as well as environmentally motivated innovation policy: • Both sustainability and growth require increased cooperation between the areas of innovation and environmental policy • Policies should target value chains and networks, especially to involve SMEs 1 • There is a choice to be made between quick results and large results • Policy instruments should be used in a coordinated manner for best effect • Regulation stimulates innovation. Apart from that we do not know, yet. 1 Small and medium sized enterprises 12
1 Introduction ”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” (Azar and Dowlatabadi, 1999) This quote illustrates the importance of technological development and innovations in societies striving towards sustainability. Existing technology must be diffused, but there is also a need for new technology. The required rate of technical change – of innovation - is high and this motivates studying what drives such change, and to understand what governments can do to support it. 1.1 Aim The aim of this study is to survey the existing literature on how external demands drive environmental innovation in firms, and to provide an overview of the field. The material used includes academic articles, scientific papers and reports from public and private organisations. The study has been undertaken with a view of contributing to the work of Swedish policy makers. This is achieved through providing knowledge on what role the external demands for sustainable development has as a driving force for innovations in firms, and on how public policy can strengthen firm growth and innovation capability. 1.2 Method The academic literature has been identified through contacts with researchers and searching various databases 2 . In a second round articles were identified by following up on references. The reports were identified through scrutinising the publication lists of relevant Swedish organisations 3 , as well as by utilising personal contacts. The articles and the reports were summarised and then organised into the present report structure. 2 Environmental abstracts, LIBRIS, EconLit, Compendex and DADS. 3 OECD, NUTEK (Swedish National Board for Industrial and Technical Development), IVA (Royal Swedish Academy of Engineering Sciences) and Miljöteknikdelegationen (The Swedish Delegation for Sustainable Technology). 13
Page 1 and 2: Drivers of environmental innovation
Page 3 and 4: Drivers of environmental innovation
Page 5 and 6: Preface Innovations such as new pro
Page 7 and 8: Sammanfattning Denna rapport är en
Page 9 and 10: Övergången mot ett mer marknadsdr
Page 11: Summary This study aims to provide
Page 15 and 16: But there are also problems with a
Page 17 and 18: 2 Environmental innovations in firm
Page 19 and 20: ”sustainable development is a key
Page 21 and 22: was in general no larger change in
Page 23 and 24: positive environmental effects alth
Page 25 and 26: That location also plays an importa
Page 27 and 28: adapted, with the latter indicating
Page 29 and 30: 4 Environmental policy instruments
Page 31 and 32: oth in the regulated industry and o
Page 33 and 34: Table 1 Summary of innovation effec
Page 35 and 36: marginal cost of abatement is lower
Page 37 and 38: according to Hemmelskamp (Forthcomi
Page 39 and 40: The Dutch studies looked for the pr
Page 41 and 42: Kemp claims that the effectiveness
Page 43 and 44: Table 5 Summary of innovation effec
Page 45 and 46: There is clearly a need for more em
Page 47 and 48: conditions. These perspectives are
Page 49 and 50: This study shows that the way envir
Page 51 and 52: Hemmelskamp, J. (Forthcoming) “En
Page 54 and 55: Appendix 1 Theoretical approaches t
Page 56: and their interaction. It opens up
Page 59 and 60: efficiency nor on optimising within
Page 61 and 62: on the theory of terms of trade. A
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egulation may lead to increases in
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average productivity increases. Thi
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VINNOVA, SE-101 58 Stockholm, Swede
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