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Eco-innovation for enabling resource efficiency and green growth 359 In the European Union (EU), eco-innovation is considered to support the wider objectives of its Lisbon Strategy for competitiveness and economic growth. The concept is promoted primarily through the Environmental Technology Action Plan (ETAP), which defines eco-innovation as “the production, assimilation or exploitation of a novelty in products, production processes, services or in management and business methods, which aims, throughout its lifecycle, to prevent or substantially reduce environmental risk, pollution and other negative impacts of resource use (including energy)”. 3 Environmental technologies are also considered to have promise for improving environmental conditions without impeding economic growth in the United States, where they are promoted through various public-private partnership programmes and tax credits (OECD 2008). To date, the promotion of eco-innovation has focused mainly on environmental technologies, but there is a tendency to broaden the scope of the concept. In Japan, the government’s Industrial Science Technology Policy Committee defined eco-innovation as “a new field of techno-social innovations [that] focuses less on products’ functions and more on [the] environment and people” (METI 2007). Eco-innovation is thus seen as an overarching concept which provides direction and vision for pursuing the overall societal changes needed to achieve sustainable development (Fig. 1). The OECD is primarily studying innovation based on the OECD/Eurostat Oslo Manual for the collection and interpretation of innovation data. This manual describes innovation as “the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations” (OECD and Eurostat 2005, p. 46). This provides a good overview on where innovation occurs beyond technology spheres but does not shed enough lights on how it occurs and what it is developed for, which are essential to understand the nature of eco-innovation as it particularly concerns the scope of changes and the impact the changes can create for improving environmental conditions. Charter and Clark (2007, p. 10) provides an alternative useful classification of eco-innovation based on the levels of making differences from the existing state as below: & Level 1 (incremental): Incremental or small, progressive improvements to existing products & Level 2 (re-design or ‘green limits’): Major re-design of existing products (but limited the level of improvement that is technically feasible) & Level 3 (functional or ‘product alternatives’): New product or service concepts to satisfy the same functional need, e.g. teleconferencing as an alternative to travel & Level 4 (systems): Design for a sustainable society In addition to the above two aspects, the concept of eco-innovation entails two other significant, distinguishing characteristics from that of ordinary innovation: & Eco-innovation includes both environmentally motivated innovations and unintended environmental innovations. The environmental benefits of an 3 The EU is discussing the renewal of the ETAP as the Eco-Innovation Action Plan from 2011. The new plan will reflect the extension of the eco-innovation concept by embracing non-technological aspects of eco-innovation such as innovation in business models and increasing attention to the diffusion and commercialisation stages of eco-innovation on top of research and development.
360 T. Machiba Field Target Technology Business model Societal system (institution) Sustainable manufacturing Innovative R&D (energy saving, etc.) Green procurement including BtoB EMA LCA Environmental labeling system Starmark Green investment Industry Manufacturing Service Rare metal recycling Green servicizing Green ICT Innovative R&D Building Energy Management System Energy services Environmental rating/green finance Source: Ministry of Economy, Trade and Industry (METI), Japan. Fig. 1 The scope of Japan’s eco-innovation concept Social infrastructure Personal lifestyle Energy Transportation / urban Innovative R&D renewable energy, batteries· Superconducting transmission Green certification Top Runner Programme PRS Act (Renewables Portfolio Standard) Innovative R&D (intelligent transport systems) Green automobiles Next-generation vehicle and fuel initiative (METI) Heat pump innovation may be a side effect of other goals such as reducing costs for production or waste management (MERIT et al. 2008). In short, eco-innovation is essentially innovation that reflects the concept’s explicit emphasis on a reduction of environmental impact, whether such an effect is intended or not. & Eco-innovation should not be limited to innovation in products, processes, marketing methods and organisational methods, but also includes innovation in social and institutional structures (Rennings 2000; Reid and Miedzinski 2008). Eco-innovation and its environmental benefits go beyond the conventional organisational boundaries of the innovator to enter the broader societal context through changes in social norms, cultural values and institutional structures. Synthesising the above considerations, the OECD project proposes that ecoinnovation can be understood and analysed from three dimensions, namely in terms of an innovation’s 1) target, 2) mechanism and 3) impact. Figure 2 presents an overview of eco-innovation and its typology: 1) Target refers to the basic focus of eco-innovation. Following the OECD/ Eurostat Oslo Manual, the target of an eco-innovation may be: a. Products, involving both goods and services. b. Processes, such as a production method or procedure. c. Marketing methods, for the promotion and pricing of products, and other market-oriented strategies. Maglev Modal shift Green tax for automobiles Green procurement Cool biz Green finance Telework, telecommuting Work-life balance
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246 R. Walz 1 Introduction Competen
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