Intermediaries supporting firms in eco-innovation

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Division of Environmental Technology and Management ... Firms developing or implementing eco-innovations encounter certain ... Technical consulting.
Intermediaries supporting firms in eco-innovation – Experiences from Scania, Sweden and NRW, Germany Wisdom Kanda, Ph.D. Candidate Department of Management and Engineering Division of Environmental Technology and Management

SHIFT Project Overview (2012-2016) The project aim was to analyze the role of sustainable entrepreneurship in the emergence and implementation of ecoinnovations.

Guiding research question: In which regard and how do support systems for entrepreneurship have to be changed in order to effectively support the generation and implementation of eco-innovations?

Klaus Fichter Coordinator

Magnus Klofsten Olof Hjelm

Alastair Fuad-Luke Mika Kuisma

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Background Firms developing or implementing eco-innovations encounter certain challenges. Individual firms may not possess all the resources, capabilities and competences needed to tackle these challenges. And thus, firms often need to connect to actors and organizations outside their own boundaries to access relevant resources, competences and capabilities to tackle their challenges in eco-innovation. One approach to access such support is through intermediaries.

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Research question How could intermediaries support firms to increase the development and implementation of eco-innovations?

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Analytical approach Functional approach based on Technological Innovation Systems (Bergek et al., 2008). 3. Mapping roles of intermediaries

2. Mapping Intermediaries within the scope

1. Defining the scope

4. Assessing the roles of intermediaries for eco-innovation

5. Recommendations for intermediaries and stakeholders (Kanda et al., 2015)

Examples of studied cases-Scania, Sweden Organization Information on intermediaries (as of autumn, 2014) Sustainable Type of organization: Membership based, non-profit organization Business Hub Capacity: 6 employees working full-time, 130 companies within the environmental goods and services sector Funding: Region Scania, European Union projects, Private sources (e.g. membership fees) Year established: 2002 Malmö Cleantech City

Type of organization: Non-membership based organization targets companies mainly within the environmental goods and services sector Capacity: 2 employees working full-time Funding: 100% from Malmö city Year established: 2010 as a project

Examples of studied cases-NRW, Germany Organization Information on intermediaries (as of autumn, 2014) Type of organization: Non-membership based cluster initiative focused on the The Greentech environmental goods and services sector Capacity: 5-6 employees working variably in time Cluster Funding: Ministry of Environment, European Union and regional development funds Year established: 2009

The Efficiency Agency

Type of organization: Technical experts on material and energy efficiency in different sizes of companies and sector Capacity: 30 employees working full-time in six locations within NRW. Funding: Ministry of Environment, NRW Year established: 1998

The Energy Type of organization: Technical experts on energy efficiency in different sizes of companies from different sectors Agency Capacity: 120 employees working in Düsseldorf, Gelsenkirchen and Wuppertal Funding: state of North Rhine Westphalia, regional development funds Year established: 1990

Roles of intermediaries in firm level eco-innovation Roles of intermediaries Activities

Prototyping and piloting

Providing platforms such as testbeds and pilot projects for field testing and measurement, evaluation and showcasing ecoinnovations.

Technical consulting

Providing technical knowledge on eco-innovation in company processes and offerings. Mobilizing, distributing and providing access to financial, human and knowledge resources for eco-innovation.

Mobilization and distributing resources

Forecasting and roadmapping

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Examples of studied intermediaries’ activities • arenas for full-scale demonstration(i) • provision of test beds conditions(ii)

Technical expertise on energy and material efficiency, and their related project implementation (vi; vii) • in-house financing support(iv) • assistance with financial applications(vi) • information on sources of finance and human capital(i, viii, ix)

Generating a portfolio of “Innovation radar”- an annual list of cutting-edge eco-innovations and cutting edge eco-innovations for firms (v) providing avenues for firms to develop them further.

Roles of intermediaries in firm level eco-innovation

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Roles of intermediaries Fostering networking and partnerships

Activities

Examples of studied intermediaries’ activities Providing arenas for meetings; facilitating collaborations between key stakeholders(i, ii, iii, iv, v, vi, vii, viii, ix)

Information gathering and dissemination

Providing arenas and facilitating networking and the development of partnerships between firms and key stakeholders regarding ecoinnovation. Gathering and disseminating of information to foster ecoinnovation.

Providing arenas for meeting and information sharing, gathering and distributing information among key stakeholders (i, ii, iii, iv, v, vi, vii, viii, ix) • Assistance with market entry (vii) Assistance with the commercial exploitation of eco-innovations both • Export promotion services(i; vii) on local and international markets. Using different means to create a • Promoting the environmental goods distinct brand and social acceptance and services sector as a major source and compliance with relevant of eco-innovation (i, ii, v) institutions for eco-innovation and • Undertaking intermediation the environmental goods and programs with environmental targets (vi, vii, viii, ix) services sector.

Commercialization Branding and legitimation

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Synthesis Generic vs. Tailored Support roles

Interaction between phases

OwnershipSource of funding (legal organisationa l form)

Scope of intermediation

Intermediation recipients

Cluster organizations

Public

- Public funds - Project financing - Membership fees (if applicable)

- Region - Sector - City

Supply-side firms (developers)

Regional efficiency agencies

Public

- Public funds

Firm/Projectspecific services

Demand-side firms (implementation)

Influences technology neutrality

longevity & survival strategies

Supporting eco-innovations towards international markets

Regions

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Appendix

List of studied intermediaries • Sustainable Business Hub (i) • Malmö Cleantech City (ii) • Regional council of Scania( iii) • ALMI Scania( iv) • The Greentech Cluster( v) • The Efficiency Agency (vi) • The Energy Agency (vii) • Agency for business promotions, Duisburg (viii) • Essen Economic Development Agency (ix)

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Definition of terms Eco-innovation Kemp and Pearson, (2008, p.7) as ”the production, application or exploitation of a good, service, production process, organizational structure or management or business method that is novel to the firm or user and which results throughout its life cycle, in a reduction of the environmental risk, pollution and the negative impacts of resource use compared to relevant alternatives”

Intermediaries Organizations and actors that assist firms in the eco-innovation process by providing external support often by acting as an agent or broker between two or more parties (Based on Howells, 2006).