The role of elite consumers in emergent alternative technology clusters

Peter Wells & Gavin Harper The ESRC B.R.A.S.S. Centre, Cardiff University Presentation Prepared For Conference: Oils & Fuels for Sustainable Development AUZO 2008 Gdańsk University of Technology, Poland 8 th – 11 th September 2008

Elite Green consumers want to associate with ‘Dynamic Brands’ and ‘Dynamic Products’ as part of the process of personal reinvention.

Cluster Policy at the juncture of Industrial, Regional and Technology Policy.
Paytas et.al. (2005)

Local Context Firm Strategy & Rivalry Related & Supporting Industries Factor Input Conditions Demand Conditions

California (hydrogen, electric cars ‘ZEV’s’
Vancouver (hydrogen fuel cells)
Iceland (geothermal energy hydrogen fuel cells
Israel (electric vehicles)
Brazil (sugarcane alcohol engines)
South Sweden (advanced safety systems)
France (air cars)

There is a dominant discourse in the clustering literature relating to the ‘supply-side’ of the cluster:
Innovation Chains
Knowledge Transfer
Inter-firm Competition

There is less focus on the ‘Demand Conditions’.
Whilst arguable the legislative environment in California has been very conducive to AV&F development, there are undeniable softer cultural aspects which are acting as a catalyst for this part of the world becoming a hub of ZEV activity and interest.

Spatial Concentration of Firms (Supply Side) AND Spatial Concentration of Consumers. The cluster is ‘constructed’ by both the suppliers and consumers.

As a result of widespread interest in the cult of celebrity, it is an under-analysed phenomenon Braudy (1986) is considered a definitive work in the area along with the earlier contributions of Debord (1967). Most celebrities in the modern era arise out of the entertainment industry in a broad sense: movie stars, sports personalities, and musicians are all examples (Henderson, 2005). California can be considered the loci of both progressive legislation on automotive standards and ‘the global celebrity industry’.

Consumers that are at the intersection between high-net personal wealth, environmentally aware and in the public eye are acting as a catalyst for public interest in AV&F’s.

Elite consumers could potentially play an important role in being
‘ Early Adopters’
seen as ‘Visionaries’ they have the potential to help emergent technologies ‘Cross the Chasm’.

Ecorazzi typifies the public’s voracious appetite for both ‘celebrity gossip’ and news of green innovation.
Celebrities are potential ‘brand ambassadors’ for AFV’s.
Internet Traffic Data From: www.alexa.com

EMA advises celebrities and entertainment professionals on thought-provoking, attention-getting ways to role model healthy, sustainable lifestyles to the general public. Whether driving a hybrid or alternative fuel vehicle or carrying a canvas bag, EMA encourages celebrities to use their power to inspire environmentally responsible behavior and affect positive change. Green Light Newsletter

Wonder why hybrids have taken over Hollywood? A little-known group named EMA helped make them a must for the planet-first crowd, says Fortune's Sue Callaway. “ Based in Los Angeles, EMA is single-handedly responsible for getting droves of celebrities into Toyota hybrids. EMA also played a key role in placing the top execs at the major Hollywood agencies - William Morris, CAA, Endeavor, and ICM - behind the wheels of hybrids.” Zesiger, (2007) Fortune Magazine

“ There's a reason you may be considering buying a gas-electric hybrid vehicle - besides wanting to help the environment or visit the gas station less frequently. Your hybrid awareness is a direct result of what is arguably the most audacious and impressive marketing/product-placement coup in memory.” “ EMA's board is an entertainment industry who's who: Pierce Brosnan, Blythe Danner, Ted Turner, and DJ AM, among 52 others.” Zesiger, (2007) Fortune Magazine

The role of elite consumers in emergent alternative technology clusters

by Gavin Harper on Sep 04, 2008

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The role of elite consumers in emergent alternative technology clusters Presentation Transcript