Manchester Institute of Innovation Research ANNUAL REPORT 

sustainability challenge, and the social and economic transformations that accompany
them. In short, the research scope of this theme can be characterised as the relationship
between innovation and sustainable development where: innovation is understood, in the
neo-Schumpeterian tradition, to include the development and implementation of new
product and process technologies, new services, new forms of organisation (including new
business models and processes), new markets and industries; and, sustainable
development is understood in its broadest sense to involve the three pillars of
environment, society and economy.
During 2011, we continued to develop a programme of work in this area which is organised
into three broad themes:
1. System dynamics and transformation: How do innovation systems form to solve
sustainability problems and how do they evolve How are markets and sectors
restructuring Is there any evidence of new forms of economic governance
2. Eco-innovation management and policy: To what extent and how are firms changing
their business models and innovation strategies in response to the sustainability
challenge To what extent are product / service interdependencies shifting within these
new business models What is the role of government policy (regulations, intellectual
property regimes, subsidies, support mechanisms etc.) in stimulating innovation
systems towards the goals of sustainable development
3. Demand, consumption and social mobilisation: How might the co-evolution of
innovation and consumption contribute to sustainability objectives How can new
socio-technical infrastructures help to shift consumption behaviour What are the
processes of social mobilisation around the sustainability agenda and how do these
relate to innovation (Links to the Sustainable Consumption Institute:
www.sci.manchester.ac.uk/ and the ESRC co-funded Sustainable Practices Research
Group: www.sprg.ac.uk)
Our research activities involve sector analyses, cross-cutting (i.e. non-sector specific)
analyses and conceptual, theoretical and methodological work. We have developed strong
interests in the construction, bio-energy, nanotechnology, aviation, water and food sectors.
2011 has seen a number of notable developments in the activities associated with the
Sustainability and Innovation theme, including:
The appointment of Dr Nicola Spurling as research associate to work with the ESRC/
Defra/Scottish Government funded Sustainable Practices Research Group.
A series of publications looking at the emergence of bioenergy and in particular
biofuels from recent research by theme members (Boucher, Gee, Gough, Upham,
McMeekin) in Energy Policy, Industry and Innovation, Greenhouse Gases: Science
and Technology, Open Geography Journal, Environmental Science and Policy. Dr
Paul Upham has spent 2011 as Visiting Professor at the Finnish Environment
Institute in Helsinki to work on biofuel innovation policy.
We held focused meetings with the outgoing and incoming CEOs of Tesco to discuss
our research on how large firms can use their buying power to stimulate supply
chain eco-innovation.
9