Drivers of environmental innovation - Vinnova

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• There is a choice to be made between quick results and large results Increased investment in already available technology may bear fruition sooner than new technology, which requires time consuming development work and at times lengthy research. It is important to give more attention to the time span involved in developing technology and new products when designing policy. This is an important factor determining the outcome in terms of innovations. Instruments also vary with respect to when the innovation effects will appear. • Policy instruments should be used in a coordinated manner for best effect Since there is no single best instrument, with instruments have differing strengths and weaknesses, and influence one another, policy makers should give ample attention to the problems and possibilities of simultaneous and coordinated use of more than one instrument. • Regulation stimulates innovation. Apart from that we do not know, yet. Regulation can stimulate innovations, even radical ones. Regulations that cannot be met with available technology, but where appropriate technology can be developed at a reasonable cost and in the not too distant future, can stimulate radical innovations. Such regulations may however impose high costs on the regulated firms. Concern should also be given to the effect on the international competitiveness of firms when using regulations. Apart from regulations there is little knowledge about the effects on innovations of environmental policy instruments. It is also difficult to say what environmental policy instrument really has what effect on innovations. How an instrument is implemented may strongly influence the outcome. More knowledge is needed to understand how best to stimulate environmental innovation. A broad range of instruments should be used in order to experiment and find out what works best. Evaluations should include the innovation dimension. All these require innovation orientated studies to be conducted. 5.3 Areas for further studies To better understand the possibilities and limitations of government action in this area, it is important to give some areas more attention in future studies. 48
This study shows that the way environmental demands enter into business processes is complex. Firm interaction mediates and transforms environmental demands. The relation between customers and suppliers in value chains is a vital part of most innovation processes. Customers have a role in the provision of information necessary for suppliers to develop environmental innovations. Customer supplier co-operation is likely to be an important and efficient means of mutual learning. A very broad range of competences is necessary to deal with the environmental dimension of the innovation process. The problem-solving networks related to environmental innovations may be more complex than for other types of innovations, and deserve special attention. Additionally, the public knowledge infrastructure must be adapted to meet the broad range of needs related to environmental innovations. Most likely a lot of innovations contribute to environmental progress without having this as an objective. It is important to understand what innovations, which improve the environmental status of production, would be developed without explicit environmental ambitions in firms, and what is to be gained adding from environmental drivers to those already in place. Sustainable development demands radical shifts in society, and systemic shifts of production, distribution and consumption. For this to occur there is a need for systemic environmental innovations. Good historical examples of such innovations may inspire future action, by shedding light on the preconditions and possible role of government in the innovation processes. Too little is known about the effects on innovations of environmental policy instruments. There are some results on regulatory instruments, but less on economic and communicative instruments. Voluntary agreements are especially interesting, as there is much current interest in them among policy makers. They may also illustrate the strengths and weaknesses of interactive policy making, an area that receives a lot of interest in Sweden today. 49
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 and 12: Summary This study aims to provide
Page 13 and 14: 1 Introduction ”7KH# RQO\# SDWK#
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: conditions. These perspectives are
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
Page 63 and 64: egulation may lead to increases in
Page 65 and 66: average productivity increases. Thi
Page 68: VINNOVA, SE-101 58 Stockholm, Swede

Drivers of environmental innovation - Vinnova

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