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Low Carbon Innovation
Support System Comparison:
Jamaica and Scotland
Presented by: Sameer Simms
Date: September 04, 2015
Edinburgh Centre for Carbon Innovation
High School Yards, Edinburgh, EH1 1LZ, Scotland
Executive Summary
The innovation support systems in Jamaica and Scotland are assessed to determine areas where
strengths of the Scottish system can help weak areas in the Jamaican system. The approach taken is
to determine the fundamental stages of, factors supporting an enabling environment for, and the
barriers to low carbon innovation in general then identify how each area is addressed by each
government. The fundamental stages determined are conceptualisation, feasibility assessments,
developing and testing, and commercialisation and implementation. The factors supporting an
enabling environment are problems and challenges requiring new solutions and support for
fundamental stages identified above. The fundamental barriers identified are the often need for
behavioural change, access to funding, government policies, and technical barriers. Based on the
information presented, recommendations are made for areas of improvement to the Jamaican
system.
The factors creating the need for conceptualisation identified are the high GHG emissions associated
with heavy use of fossil fuels and the negative impacts on trade balance, currency, energy security,
and competitiveness associated with heavy importation of fossil fuels. Based on the assessment of
support provided for each stage of the innovation process, recommendations are made to strengthen
weak areas in the Jamaican innovation system. In the area of supporting and promoting
conceptualisation, it is recommended to put more pressure on academic institutions to supply
knowledge based on the problems in the country, publicise the importance of and current innovation
in Jamaica, encouraging business to develop an innovative culture, and setting more specific energy
related goals covering transport fuels, emissions, electricity generation, and energy use per capita.
Improving support can be achieved through increasing access to technologies and the internet,
working with international partners to increase access to expertise and equipment, encouraging more
internship placements, and increasing access to business support and advice. To improve the support
for commercialisation and implementation, establishing a start-up accelerator, increasing accessibility
to marketing, financial, and business support and advice through a one-stop website, and incentivising
the increase of quality and quantity of export goods and services are steps that can be taken.
At the core of any strong innovation system is a strategic and specific policy outlining thorough action
plans. This is lacking in Jamaica and therefore it is recommended that one be developed using existing
ones in other countries pioneering innovation for a low carbon future. Recommendations to address
the barrier of funding are lowering interest rates on low carbon loans and providing incentives for
businesses that fun R&D. To address technical barriers, it is recommended to increase partnerships
with research centres and universities locally and abroad to encourage research pooling and
knowledge exchange. Also, focus should be placed on building capacity for developing low carbon
products, tapping into the expertise present in multinational companies operating in the island, and
encouraging these companies to provide internships for locals.
It is highly recommended that a one-stop entity be established which works to address the barriers to
low carbon innovation and provides support at all stages. Such an entity would develop strong ties
with relevant players in, among others, the finance, research, technical, and consulting industries.
Contents
Executive Summary.................................................................................................................................2
Introduction ............................................................................................................................................5
Stages in Low Carbon Innovation............................................................................................................7
Enabling Environment.............................................................................................................................9
Barriers..................................................................................................................................................12
Government Efforts ..............................................................................................................................14
Support at Each Stage...........................................................................................................................18
Addressing Barriers...............................................................................................................................20
Conclusion.............................................................................................................................................23
Recommendations................................................................................................................................24
Introduction
What is Low Carbon Innovation?
Innovation is the process of conceptualising, developing, and implementing novel or improved
products, services, and processes which create new value for businesses, organisations, people, and
societies. Innovation is the driver of technological advancements, improved ways of life, and a more
sophisticated human society. Innovation effectively provides better solutions for present and future
problems. Innovation is facilitated by inventors, entrepreneurs, mentors, and individual achievers who
might be under pressure to compete, are challenged, or are visionaries wanting to define a new
paradigm. Innovators require an enabling environment which provides the drive to innovate, freedom
to explore, and support at all stages. Low carbon innovation describes innovation that solves the
fundamental problems of reducing greenhouse gas emissions and reducing dependence on fossil
fuels. The products, methods, and services developed tackles the challenge of satisfying current
demand while reducing the use of fossil fuels. Innovation typically includes four fundamental stages,
namely conceptualisation, feasibility assessments, development and testing, and
commercialisation/implementation.
Role of Innovation in Economic Growth
Innovation can be seen as the primary source and a driver of economic growth and productivity. It is
a driver that solves our problems and makes possibilities realities. Advances in technology have shown
an impeccable record of improving the efficiency of operations in the primary and manufacturing
sector which has led to cheaper production prices, increased production, and lower prices for
consumers. Lower production prices gives producers and manufacturers a competitive advantage and
bigger profits. The competitive advantage allows them to compete successfully on the global market
and the bigger profits increase tax revenues and allow them to expand and create more jobs.
Innovations in the health care industry have led to better treatment of and resilience to illnesses which
corresponds to less sick days and therefore higher productivity. It is a similar story for innovation in
all industries, better products and services, which ultimately leads to residents being more able to
afford desired goods and services. In terms of low carbon, innovation serves to reduce dependence
on fossil fuels. For countries like Jamaica that have a high dependence on fossil fuels originating from
other countries, reducing expensive fossil fuel consumption serves to reduce costs of locally produced
goods and thus increase competitiveness, increase insulation to global fossil fuel price shocks, reduce
demand for foreign currency (to pay for fuel imports) and thus increase the value of the local currency,
and reduce damage to the environment caused by oil spills, GHG emissions, etc.
Innovation in Jamaica and Scotland at a Glance
The two nations, based on the indicators used, are at opposite ends of the spectrum in terms of
innovation in general. The indicators chosen are those available for the two countries.
Indicator Jamaica Scotland
Gross expenditure on R&D as a
% of GDP (2005)
0.3 1.61
Patent filings per million
people
23 (2000-2005) >230 (2002)
Stages in Low Carbon Innovation
Conceptualisation
The problems in a society provide the primary incentive to conceptualisation. This is the very first step
of the innovation process without which, innovation will not happen. Simply put, if the society is
perfect there is no need and possibility for improvements. Experiencing or recognising a problem is
what gets our brains thinking of finding a solution whether it be novel or improvement of a current
solution. In some cases, relatively few, innovations are the result of accidental discoveries. Some of
the best known accidental inventions are artificial sweeteners, the microwave, Teflon used in non-
stick cookware, the pacemaker, corn flakes, and the X-ray machine. Innovators conceptualise solutions
for different reason including a desire to excel in a particular field, make money, and for the public
good. Whatever, the reason, the other stages are important for successful innovations.
Feasibility Assessments
Arguably, it is logical to conclude that billions of ideas are created every day from the minds of over 7
billion people on our planet. However, it is reasonable to say that it has never been the case where
billions of innovations are implemented in society on a daily or annual basis. Some ideas are good
while some are not. After the conceptualisation process, it is necessary to determine the potential of
an idea to be successfully implemented. To do this, one must assess the need for and barriers to the
implementation of an idea. The need for ideas with high potential must be strong an urgent which
implies that current solutions have lived past glory days. Whether it be due to inherent weaknesses
or new standards or requirements, over time, solutions become less effective and thus creates new
problems to be solved. If the need is not sufficient, the likelihood for successful implementation will
not be strong. One must also consider the barriers that an idea faces whether they are technical,
financial, or socio-cultural. The rank of barriers in terms of size is specific to a particular innovation. As
an example, while it was technically and financially feasible to create devices to capture methane from
human and animal faeces for use in cooking, social acceptance proved to be, and is still, an issue in
many parts of the world. Another example, while many persons have gotten over the fear of hydrogen
hazards and it is technically feasible to power vehicles only with hydrogen, the high initial and
operating costs is the biggest barrier to wide-scale implementation. The final example, imagine a taxi
operator desiring to power an electric vehicle using only photovoltaic panels on the roof. While he/she
might not mind and can afford to install the panels, the equipment is not technically feasible (with
current technology) to fit all the panels required (to satisfy the power demand) on the roof of the car.
Development and Testing
In this stage, an idea is refined to make it more investment friendly and/or implementation-ready. An
idea must be tested to determine its effectiveness and discover problems that were previously
unknown. This is the stage where some ideas becomes a tangible product or a tested intangible service
or process. At this stage sizeable technical and financial support might be needed as was the case for
the creation of smaller and more economical fuel cells. Heavy investment from the National
Aeronautics and Space Administration (NASA) in the past and automakers in more recent years have
led to innovative fuel cells. This is the earliest stage at which investors are likely to be sought.
Commercialisation/Implementation
This is the last fundamental stage where full-scale operations, marketing, and selling begin. The stage
where a product or method is introduced into commerce, making it available on the market. For
commercial products, large investment and support (for skills, management, legal, etc.) might be
needed. Stakeholders determine when, where, and how to launch a product and who to target.
Enabling Environment
An enabling environment for low carbon innovation presents problems and challenges warranting the
need for improved solutions, freedom to explore opportunities, and support in other phases of the
innovation process.
Need for Conceptualisation
A. Unsustainable GHG Emissions
The primary concern of GHG emissions is its contribution to excessive global warming which brings
the risk of detrimental sea level rise, more frequent, and/or intense droughts and other
meteorological phenomena such as cyclones. The melting of the ice caps caused by global warming
severely affects ecosystems due to habitat destruction, increased water temperatures, and other
effects.
B. Energy Security and Competitiveness
Another major driver of low carbon innovation is the need to increase resilience and insulation from
oil price spikes. The oil crisis in the 1970’s was the first major driver of renewable fuel sources. Fossil
fuels, hands down, is the primary energy source of the world. Almost all countries demand this fuel
however, not all countries have fossil fuel resources. This creates a situation where countries are
vulnerable to the effects of varying fossil fuel supply and prices, factors manipulated by other
countries. Shortage in the supply of fossil fuels can have long term devastating economic and social
impacts on a country. Also, a country’s productivity and competitiveness is directly related to the price
of energy (fuel for transportation and electricity generation). The higher the price, the lower the
competitiveness due to resulting higher prices for goods. High energy prices can therefore stifle the
growth of an economy in an increasingly globalised world.
C. Economic Impacts
Many fossil fuel-lacking countries pay for the resource using foreign currency (typically the USD). This
situation creates a high demand for foreign currency which is earned by exporting products and
services. The supply and demand for foreign currency directly affects the strength of that currency to
the local’s. In the scenario of weakening national currencies due to trade imbalances, governments
typically move to reduce spending on imports which serve to curb the demand for foreign currency.
To reduce spending on imported fossil fuels, the demand for energy must be supplemented or
reduced. Simply putting quotas on importation (as the only measure) will only increase the prices
residents pay. Arguably, this can create a ripe environment for innovation due to the numerous
resulting adversities but the effects are likely to be too devastating. Supplementing the energy
demand requires the use of alternative fuel sources under diversification schemes. Reduction in
energy demand can be achieved through increased energy efficiency and conservation, improved
water and waste management (which requires energy), and other means.
Support at each Stage
Support is required in the stages of feasibility assessment, development and testing, and
commercialisation/implementation. After conceptualising an idea, it is necessary to test the quality
and potential of an idea. An idea might be good but not suitable now or doesn’t improve previous
solutions. Support is needed in the form of easy access to information, expertise, facilities, and
sometimes funding. This is a crucial step which acts as a filter for ideas. Innovators might test the
feasibility of an idea technically, financially, and socially (normally in that order). This variety of support
is typically, on a larger scale, needed at the development and testing stage as well. Information can
be made more accessible by creating a central point from which sources of specific knowledge are
listed, creating and publicizing reports, and through knowledge broker services. Access to expertise
can be improved though similar means as well as by, among others, forming more partnerships
between the private sector and universities, research pooling, forming associations of professionals,
conducting more events that facilitate networking, and publicising work done by experts. The
commercialisation/implementation of an idea should be thoroughly planned. While innovators are
adept at conceptualising and developing an idea, it is often the case that they lack the sufficient
business and finance proficiency to successfully commercialise a product. Support then is needed to
fill this gap. This support is often in the form of improving access to angel investors, attractive loans,
grants, manufacturers and suppliers, software and web designers, market analysis experts, marketing
strategy experts, and general business advice and support services.
Barriers
Behavioural Change Requirement
The use of fossil fuels have shaped the way humans think about energy and how they go about
conducting activities. The current energy infrastructure has been developed for fossil fuels. Modern
fossil fuel power plants can produce reliable power at any time to meet demand. The high energy
density of gasoline and diesel as well as historic cheapness have led to the norm of increasing usage
to meet increasing demand. In the past, there was never a significant need to conserve energy and
this has made humans high energy users (wasteful). Alternative sources such as solar and wind have
a much lower energy density and cannot satisfy the current norms for electricity usage or transport.
Also, they are intermittent and so not reliable to supply all the power to meet demands at all times.
Their use requires a smart grid and expensive storage systems. Modern electric vehicles are known to
offer very limited range when compared to typical petrol and diesel vehicles. Humans have gotten use
to travelling over 500km on one tank and refuelling in less than 5 minutes. Electric vehicles typically
offer less than 200km on a full charge and takes hours to fully recharge. The current status quo is to
have energy when and where it is needed and to do so without depleting life savings. The need for
behavioural change and attitude towards energy usage is then a barrier to low carbon innovation.
Without behavioural change, ideas must not only reduce fossil fuel use but also maintain the status
quo otherwise successful implementation will be hard to achieve.
Availability and Access to Funding
Low carbon innovation has had a reputation of requiring special government effort to promote
investment. Funding is a requirement for all innovations. Many low carbon ideas require heavy
funding from the public and private sectors. Most investors are profit-driven and so are looking to
make money quickly which means the idea must have the potential to make large profits in short
order. If the product is costly or will require significant behavioural change of consumers, it is unlikely
to attract sufficient investment. This situation has resulted in governments, aware of the non-financial
benefits, providing incentives to investors and consumers. The level of funding and provision of
incentives varies by country but is often times inadequate.
Government Policies
Government policies play a key role in the innovation process. The process is likely to be more
successful in a country that has created policies supporting reduction in GHG emissions, reduction in
energy use, use of alternative fuel sources, use of energy efficient products, etc. These policies have
strategies that provide incentives, incentives necessary for some products to be profitable. These
policies are also key to catalysing behavioural changes.
Technical
As with many innovations, low carbon products face technical problems. These problems might exist
in creating the product or in implementing a product in current infrastructure. Some technical
problems lead to others such as high prices and requiring significant behavioural change. These
problems, over time, might be solved by advances made through continued research and increased
funding.
Government Efforts
The Jamaican and the Scottish governments have set low carbon goals. The Jamaican government
have set a goal of 30% (revised from 20%) and 12.5% renewable energy contribution to the energy
mix by 2030 and 2015 respectively. The exact contribution currently is roughly 7%. The commissioning
of a new solar farm and two wind farms should increase this number to around 11%. The Scottish
government set more ambitious low carbon goals of 80% of electricity and 11% of heat generated
from renewables, 12% reduction in total energy consumption, and 42% reduction in emissions
(interim to 80% by 2050) all by 2020. Net Scottish emissions were 26.4% lower than 1990 levels
representing an average annual reduction of 1.2% compared to 3% the current requirement.
The Jamaican government has produced several policy documents which describe its action plan for a
low carbon and more energy efficient future. In terms of innovation support, there is one document
that speaks to the use of science and technology to tackle problems. The Science and Technology for
Socio-Economic Development policy speaks to the country realising it must use existing technology
and knowledge to start tackling chronic production problems while building a stronger research and
development base to seek answers and anticipate problems. The policy also mentions that the island
possesses all fundamental infrastructural Science and Technology (S&T) components except for risk
and venture funds for technology-led projects and pilot plant facilities. The document highlights the
need for a closer working relationship between the public and private sectors and between academia
and production. Other points highlighted by the document are:
 The need to strengthen the role of innovation and the proper funding of S&T activities
 The need for greater private sector participation in S&T development and application
 Increasing allocation to R&D and S&T through direct and indirect taxation, use of funds from
the National Lottery, and contributions from education tax collected.
 The need to ensure that a sizeable portion of allocations to R&D actually goes towards R&D
as opposed to salaries and administrative activities (the current scenario).
The Scottish government released a similar policy document titled “Scotland Can Do: Becoming a
World-Leading Entrepreneurial and Innovative Nation”. The document is a framework setting the
vision for Scotland to become a world-leading entrepreneurial and innovative nation and outlines
several ambitious goals including having an education system with entrepreneurship and innovation
at its core and of course, to achieve an increase in innovation and entrepreneurship activity from
Scottish individuals and businesses. Indicators to be used for measuring its progress are increases in
number of businesses, research and development spending, and knowledge exchange from university
research. Both documents primarily describe the current situation and where each country wants to
be in the future but neither outlines exactly how they will achieve goals, at least in a thorough manner.
The Scottish government released two documents which provides more specific action plans, namely
“The Government Economic Strategy” and “A Low Carbon Economic Strategy.” The general economic
strategy document identified the role of the government in creating a supportive business
environment (with a focus on growth companies, growth sectors, and growth markets) which will
accelerate the growth of the economy. To provide this supportive business environment, measures
are to be taken in the areas on international trade and investment, supporting business growth,
helping small businesses create jobs, growth sectors, innovation and commercialisation, and taxation.
In the area of international trade and investment, some of the commitments by the government are:
 Prioritising lending, from the Scottish Investment Bank, to support SME’s with international
ambitions and the Export Support Initiative will continue to deliver advice and support to
SME’s with export potential.
 Supporting, through the Scottish development International, 8000-10000 more businesses in
developing skills necessary to facilitate exploitation of international markets by 2015.
In the area of supporting business growth, the government has, among others, committed to:
 Offering support, through Skills Development Scotland, to make it easier for SME’s to hire staff
and take on apprentices
 Continuing the advice and support services to potential start-up and early stage businesses
through Business Gateway
 Extend the success of Public Contracts Scotland – a free-to-access portal which has improved
access to public contract opportunities
In the area of growth sectors, some commitments by the government are:
 Through Creative Scotland, support investment opportunities in the creative industries
 Investing in universities to secure more economic and social benefits and also to develop
partnerships with businesses to exploit their research.
In the area of innovation and commercialisation, some commitments by the government are:
 Launching a centralised point of access interface for businesses to knowledge and expertise
within universities and research institutes in Scotland.
 Streamlining the support delivered by Scottish Enterprise and Highlands and Islands
Enterprise for commercialisation and innovation.
In the area of taxation, the government has, among others, committed to:
 Continuing the Small Business Bonus Scheme (SBBS) which provides a discount (25% to 100%)
on business rates bills for eligible business properties
 Continue freezing council tax bills at a time of rising prices and increasing UK Government
taxation in the hopes of boosting consumer spending.
While the low carbon strategy document does not outline a wide variety of relevant steps for
supporting innovation, the goals or targets set by the government (basically reducing GHG emissions,
improving energy efficiency and conservation, and increasing the use of renewables) creates an
environment supportive of low carbon innovation. Three relevant specific steps outlined are:
 Promoting low carbon lifestyles to inspire local action in communities through the Climate
Challenge Fund.
 Promoting, through the Vision in Business for the Environment in Scotland Awards, excellence
in business innovation in tackling emissions and improving environmental performance.
 Working with various bodies to establish new technology hubs/alliances to act as focal points
for low carbon innovation.
In general, it is clear that the government policy in place to support innovation in Jamaica is in its
infancy and is neither specific nor thorough. On the other hand, the Scottish government has
addressed support for innovation in all stages from conceptualisation to commercialisation.
Support at Each Stage
The tables below shows government measures in place to support stages in the innovation process.
Conceptualisation, this process requires a need, incentive, or challenge to develop solutions for
problems.
Jamaica Scotland
 Set goal of increasing the share of
renewables in the energy mix to
30% by 2030
 Promotes the need for a low carbon
lifestyle
 Set goal of reducing GHG emissions by 42% by 2050
 Set goal of significant decarbonisation of road and
rail transportation by 2050
 Set goal of reducing final energy use by 12%
through energy efficiency measures by 2020
 Set goal of 80% share of electricity energy mix
coming from renewables by 2020
 Promotes the need for a low carbon lifestyle
Feasibility Assessment and Development and Testing, these two stages are joined together here
because they often require similar support measures even though they are very distinct stages.
Support required is often in the form of market analysis services, investment, expertise, access to
facilities, and business advice.
Jamaica Scotland
 Government encourages greater private
sector participation in Science and
Technology Development
 Government plan to establish new
technology hubs/alliances
 Export Support Initiative
 Skills Development Scotland
 Research institutions increasing allocations
to research that solves local problems
 Provision of Awards
 Caribbean Climate Innovation Centre
 Office of Research and Innovation
(University of the West Indies, not low
carbon exclusive)
 Technology Innovation Centre (University of
Technology, not low carbon exclusive)
 Jamaica Venture Capital Programme
 Business Gateway
 Government launch of a centralised
point of access to knowledge and
expertise by businesses
 Government investing in universities to
support partnership with businesses to
exploit research
 Provision of awards
 Incubators and Accelerators
Commercialisation and Implementation, this stage requires access to, among others, incentives,
funding, marketing services, trained and skilled staff, networks of suppliers, and business support and
advice.
Jamaica Scotland
 Jamaica Venture Capital Programme
 Caribbean Climate Innovation Centre
 Streamlining of support from Scottish
Enterprise and Highland and Island
Enterprise for commercialisation and
innovation
 Carbon Trust
 Incubators and Accelerators
 Low Carbon Infrastructure Transition
Programme
Addressing Barriers
In this section, government measures in place to address barriers in the innovation process are
highlighted.
Behavioural change, this is a necessary step for those innovations which requires changes to norms
for acceptance by end users. Such innovations are not able to be implemented or used satisfactorily
with current attitudes and behaviours. Change can be achieved through passive means or forced using
regulatory means such as bans, quotas, and taxation.
Jamaica Scotland
 Promoting energy conservation in the
workplace and in households
 By not subsidising high fuel and electricity
costs (whether intentional or not), results in
high energy costs which encourages
conservation and the consumption of
innovative products to reduce energy costs
 Incentivising low carbon energy investment
 Promoting energy conservation in the
workplace and in households
 Implementing more stringent emission
requirements for vehicles, industries, and
power plants
 Plan to make energy efficiency in houses a
national infrastructure priority
 Incentivising green energy investment
Access to Funding, a factor necessary for all innovations, must be addressed for a successful
innovative process. Funding can be in the form of attractive and specific loans, grants, and investors.
Also, removing or reducing taxes can be seen as reducing the barrier of access to funds as it effectively
reduces the amount of funding required. Also, access to funding can be improved by making it easier
for entrepreneurs and entities to find funding sources.
Jamaica Scotland
 Green energy loans from private financial
institutions with “attractive” interest rates
 Providing “low” interest loans through the
through public sector financial institutions
 National Innovation Awards
 Caribbean Climate Innovation Centre’s
Proof of Concept Grant
 First Angel Jamaica
 Jamaica Venture Capital Programme
 Providing fiscal and financial incentives
 Government grants
 Small business loans from private financial
institutions
 Infrastructure and Innovation Fund
 Created a central point for access to
business support services and funding
sources
 Several venture capital entities
 Several angel investor networks
 Small Business Bonus Scheme (SBBS)
 Freezing council tax bills
 Low interest loans
Government Policies, these play a critical role at each stage of the innovation process. Policies can
help or deter the stimulation of conceptualisation, development and testing of solutions, and the ease
of full-scale production or implementation. It is therefore important for the government to set the
stage which allows an enabling environment to develop. Various government actions which have
made it easier for the innovation process were stated earlier in the previous section. Some areas
which policies and implementations by the government of Jamaica can improve are the ease of doing
business (commendable strides have been made but there is room for improvement), tax incentives
for start-ups, and high interest rates on loans (lower rates can be made available for low carbon
companies).
Technical Barriers, these are idea specific and typically require investment, expertise, access to
specialised equipment, and innovation.
Jamaica Scotland
 Increasing partnerships between
universities and the private sector.
 Skills and capacity building workshops
 Increasing partnerships between
universities and the private sector.
 Skills and capacity building workshops
 Technology accelerators
 Knowledge exchange
 Research pooling
Conclusion
The difference in the development status between Scotland and Jamaica is mirrored in the difference
between the innovation support systems of both countries and perhaps, the two (development and
innovation) share a cause and effect relationship. The Scottish innovation system shows more signs of
specific focus, planning, organisation, and investment. Innovation is given a much higher level of
importance which shows in the actions by the Scottish government and private sector. It is possible
though, that the Jamaican government places high importance on innovation but the relatively small
economy and financial woes limit their ability to support innovation on a larger scale. In terms of
support at each stage in Jamaica, the weakest area is commercialisation and implementation. The
other stages are supported fairly well but there is much room for improvement. In terms of barriers
most work is needed in increasing access to venture capital funds, addressing technical barriers and
developing a specific policy for innovation. Funding is available but high interest rates makes them not
the most accessible.
Recommendations
While the recent efforts made by the Jamaican government (for innovation in general) are
commendable, there is much room for improvement (both general and especially for low carbon). A
strategic approach should be taken to address the barriers to and create the nurturing environment
for low carbon innovation. Such approach should be specific, thoroughly planned, and involve all
stakeholders (public and private sectors, communities, foreign partners, etc.) Currently, there are no
policies specific to low carbon innovation support and that is an excellent place to start. Such a policy
should cover action plans for most if not all areas related to low carbon innovation. The government
should make use of international best practices.
To further encourage conceptualisation, the government should consider:
 Encouraging businesses to develop an innovative culture and be more proactive about solving
their problems rather than just complain about problems like high energy prices
 Putting more pressure on academic institutions to shift knowledge supply to match
knowledge demand that is based on problems in the country
 Adding innovation and entrepreneurial modules in secondary and tertiary-level institutions.
 Publicise the importance for and current innovation in Jamaica
 Set more specific low carbon goals to cover transport fuel, emissions, electricity generation,
and energy use per capita measures
To support the stages of feasibility assessment and development and testing, the government should
consider:
 Working with appropriate entities to increase access to technologies and the internet
 Increasing accessibility of business support and advice
 Working with international partners to solve problems of lack of access to equipment and
expertise
 Encouraging more secondments and internship placements
To support the commercialisation and implementation stage, the government should consider:
 Creating a one stop website for access to marketing, financial, and business experts
 Partnering with the private sector to create a low carbon specific start-up accelerator or
incubator
 Establishing an agenda to increase the quality and exportation of Jamaican products and
services
To address the barrier of funding, the government should consider:
 Lowering interest rates on low carbon business loans
 Providing fiscal and financial incentives for businesses and investors that fund innovation and
R&D
To address technical barriers, the government should consider:
 Increase partnerships with universities and research centres abroad to encourage research
pooling and knowledge exchange
 Build capacity for developing low carbon products locally, regionally, and internationally
 Access expertise present in multinational companies operating in the island
 Encourage multinational companies operating in the island to provide internships to locals
It is highly recommended that the government work to see the creation of a one-stop low carbon
innovation incubator (and/or accelerator) entity (such as ECCI) which provides support at all stages in
the innovation process. This entity should be tasked with creating databases and relationships with
researchers, consultants, angel investors, venture capitalists, financial institutions, market analysts,
marketing managers, legal firms, and manufacturers. These databases will help to assist innovators at
the feasibility assessment, developing and testing, and commercialisation and implementation stages.
The intent is to minimise time spent by innovators looking for assistance and concepts (marketing,
financial, scientific, etc.) while maximising time spent on active progression. Also, this entity will,
through the database and good relationships with relevant parties, address some technical and
financial barriers. Frequent bulletins promoting low carbon technologies and practices, progress of
low carbon start-ups, major low carbon achievements in the private and public sectors, and the
impacts of carbon-intensive practices should be heavily publicised. The operating costs of this entity
should be met with a combination of start-up equity income, government funds, member fees
(members should be encouraged to get sponsorship from the private sector), fees from hosting events
(conferences, workshops, etc.), selling publications, and other means.

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Innovation_Support_Comparison_report

  • 1. Low Carbon Innovation Support System Comparison: Jamaica and Scotland Presented by: Sameer Simms Date: September 04, 2015 Edinburgh Centre for Carbon Innovation High School Yards, Edinburgh, EH1 1LZ, Scotland
  • 2. Executive Summary The innovation support systems in Jamaica and Scotland are assessed to determine areas where strengths of the Scottish system can help weak areas in the Jamaican system. The approach taken is to determine the fundamental stages of, factors supporting an enabling environment for, and the barriers to low carbon innovation in general then identify how each area is addressed by each government. The fundamental stages determined are conceptualisation, feasibility assessments, developing and testing, and commercialisation and implementation. The factors supporting an enabling environment are problems and challenges requiring new solutions and support for fundamental stages identified above. The fundamental barriers identified are the often need for behavioural change, access to funding, government policies, and technical barriers. Based on the information presented, recommendations are made for areas of improvement to the Jamaican system. The factors creating the need for conceptualisation identified are the high GHG emissions associated with heavy use of fossil fuels and the negative impacts on trade balance, currency, energy security, and competitiveness associated with heavy importation of fossil fuels. Based on the assessment of support provided for each stage of the innovation process, recommendations are made to strengthen weak areas in the Jamaican innovation system. In the area of supporting and promoting conceptualisation, it is recommended to put more pressure on academic institutions to supply knowledge based on the problems in the country, publicise the importance of and current innovation in Jamaica, encouraging business to develop an innovative culture, and setting more specific energy related goals covering transport fuels, emissions, electricity generation, and energy use per capita. Improving support can be achieved through increasing access to technologies and the internet, working with international partners to increase access to expertise and equipment, encouraging more internship placements, and increasing access to business support and advice. To improve the support
  • 3. for commercialisation and implementation, establishing a start-up accelerator, increasing accessibility to marketing, financial, and business support and advice through a one-stop website, and incentivising the increase of quality and quantity of export goods and services are steps that can be taken. At the core of any strong innovation system is a strategic and specific policy outlining thorough action plans. This is lacking in Jamaica and therefore it is recommended that one be developed using existing ones in other countries pioneering innovation for a low carbon future. Recommendations to address the barrier of funding are lowering interest rates on low carbon loans and providing incentives for businesses that fun R&D. To address technical barriers, it is recommended to increase partnerships with research centres and universities locally and abroad to encourage research pooling and knowledge exchange. Also, focus should be placed on building capacity for developing low carbon products, tapping into the expertise present in multinational companies operating in the island, and encouraging these companies to provide internships for locals. It is highly recommended that a one-stop entity be established which works to address the barriers to low carbon innovation and provides support at all stages. Such an entity would develop strong ties with relevant players in, among others, the finance, research, technical, and consulting industries.
  • 4. Contents Executive Summary.................................................................................................................................2 Introduction ............................................................................................................................................5 Stages in Low Carbon Innovation............................................................................................................7 Enabling Environment.............................................................................................................................9 Barriers..................................................................................................................................................12 Government Efforts ..............................................................................................................................14 Support at Each Stage...........................................................................................................................18 Addressing Barriers...............................................................................................................................20 Conclusion.............................................................................................................................................23 Recommendations................................................................................................................................24
  • 5. Introduction What is Low Carbon Innovation? Innovation is the process of conceptualising, developing, and implementing novel or improved products, services, and processes which create new value for businesses, organisations, people, and societies. Innovation is the driver of technological advancements, improved ways of life, and a more sophisticated human society. Innovation effectively provides better solutions for present and future problems. Innovation is facilitated by inventors, entrepreneurs, mentors, and individual achievers who might be under pressure to compete, are challenged, or are visionaries wanting to define a new paradigm. Innovators require an enabling environment which provides the drive to innovate, freedom to explore, and support at all stages. Low carbon innovation describes innovation that solves the fundamental problems of reducing greenhouse gas emissions and reducing dependence on fossil fuels. The products, methods, and services developed tackles the challenge of satisfying current demand while reducing the use of fossil fuels. Innovation typically includes four fundamental stages, namely conceptualisation, feasibility assessments, development and testing, and commercialisation/implementation. Role of Innovation in Economic Growth Innovation can be seen as the primary source and a driver of economic growth and productivity. It is a driver that solves our problems and makes possibilities realities. Advances in technology have shown an impeccable record of improving the efficiency of operations in the primary and manufacturing sector which has led to cheaper production prices, increased production, and lower prices for consumers. Lower production prices gives producers and manufacturers a competitive advantage and bigger profits. The competitive advantage allows them to compete successfully on the global market
  • 6. and the bigger profits increase tax revenues and allow them to expand and create more jobs. Innovations in the health care industry have led to better treatment of and resilience to illnesses which corresponds to less sick days and therefore higher productivity. It is a similar story for innovation in all industries, better products and services, which ultimately leads to residents being more able to afford desired goods and services. In terms of low carbon, innovation serves to reduce dependence on fossil fuels. For countries like Jamaica that have a high dependence on fossil fuels originating from other countries, reducing expensive fossil fuel consumption serves to reduce costs of locally produced goods and thus increase competitiveness, increase insulation to global fossil fuel price shocks, reduce demand for foreign currency (to pay for fuel imports) and thus increase the value of the local currency, and reduce damage to the environment caused by oil spills, GHG emissions, etc. Innovation in Jamaica and Scotland at a Glance The two nations, based on the indicators used, are at opposite ends of the spectrum in terms of innovation in general. The indicators chosen are those available for the two countries. Indicator Jamaica Scotland Gross expenditure on R&D as a % of GDP (2005) 0.3 1.61 Patent filings per million people 23 (2000-2005) >230 (2002)
  • 7. Stages in Low Carbon Innovation Conceptualisation The problems in a society provide the primary incentive to conceptualisation. This is the very first step of the innovation process without which, innovation will not happen. Simply put, if the society is perfect there is no need and possibility for improvements. Experiencing or recognising a problem is what gets our brains thinking of finding a solution whether it be novel or improvement of a current solution. In some cases, relatively few, innovations are the result of accidental discoveries. Some of the best known accidental inventions are artificial sweeteners, the microwave, Teflon used in non- stick cookware, the pacemaker, corn flakes, and the X-ray machine. Innovators conceptualise solutions for different reason including a desire to excel in a particular field, make money, and for the public good. Whatever, the reason, the other stages are important for successful innovations. Feasibility Assessments Arguably, it is logical to conclude that billions of ideas are created every day from the minds of over 7 billion people on our planet. However, it is reasonable to say that it has never been the case where billions of innovations are implemented in society on a daily or annual basis. Some ideas are good while some are not. After the conceptualisation process, it is necessary to determine the potential of an idea to be successfully implemented. To do this, one must assess the need for and barriers to the implementation of an idea. The need for ideas with high potential must be strong an urgent which implies that current solutions have lived past glory days. Whether it be due to inherent weaknesses or new standards or requirements, over time, solutions become less effective and thus creates new problems to be solved. If the need is not sufficient, the likelihood for successful implementation will not be strong. One must also consider the barriers that an idea faces whether they are technical, financial, or socio-cultural. The rank of barriers in terms of size is specific to a particular innovation. As
  • 8. an example, while it was technically and financially feasible to create devices to capture methane from human and animal faeces for use in cooking, social acceptance proved to be, and is still, an issue in many parts of the world. Another example, while many persons have gotten over the fear of hydrogen hazards and it is technically feasible to power vehicles only with hydrogen, the high initial and operating costs is the biggest barrier to wide-scale implementation. The final example, imagine a taxi operator desiring to power an electric vehicle using only photovoltaic panels on the roof. While he/she might not mind and can afford to install the panels, the equipment is not technically feasible (with current technology) to fit all the panels required (to satisfy the power demand) on the roof of the car. Development and Testing In this stage, an idea is refined to make it more investment friendly and/or implementation-ready. An idea must be tested to determine its effectiveness and discover problems that were previously unknown. This is the stage where some ideas becomes a tangible product or a tested intangible service or process. At this stage sizeable technical and financial support might be needed as was the case for the creation of smaller and more economical fuel cells. Heavy investment from the National Aeronautics and Space Administration (NASA) in the past and automakers in more recent years have led to innovative fuel cells. This is the earliest stage at which investors are likely to be sought. Commercialisation/Implementation This is the last fundamental stage where full-scale operations, marketing, and selling begin. The stage where a product or method is introduced into commerce, making it available on the market. For commercial products, large investment and support (for skills, management, legal, etc.) might be needed. Stakeholders determine when, where, and how to launch a product and who to target.
  • 9. Enabling Environment An enabling environment for low carbon innovation presents problems and challenges warranting the need for improved solutions, freedom to explore opportunities, and support in other phases of the innovation process. Need for Conceptualisation A. Unsustainable GHG Emissions The primary concern of GHG emissions is its contribution to excessive global warming which brings the risk of detrimental sea level rise, more frequent, and/or intense droughts and other meteorological phenomena such as cyclones. The melting of the ice caps caused by global warming severely affects ecosystems due to habitat destruction, increased water temperatures, and other effects. B. Energy Security and Competitiveness Another major driver of low carbon innovation is the need to increase resilience and insulation from oil price spikes. The oil crisis in the 1970’s was the first major driver of renewable fuel sources. Fossil fuels, hands down, is the primary energy source of the world. Almost all countries demand this fuel however, not all countries have fossil fuel resources. This creates a situation where countries are vulnerable to the effects of varying fossil fuel supply and prices, factors manipulated by other countries. Shortage in the supply of fossil fuels can have long term devastating economic and social impacts on a country. Also, a country’s productivity and competitiveness is directly related to the price of energy (fuel for transportation and electricity generation). The higher the price, the lower the competitiveness due to resulting higher prices for goods. High energy prices can therefore stifle the growth of an economy in an increasingly globalised world.
  • 10. C. Economic Impacts Many fossil fuel-lacking countries pay for the resource using foreign currency (typically the USD). This situation creates a high demand for foreign currency which is earned by exporting products and services. The supply and demand for foreign currency directly affects the strength of that currency to the local’s. In the scenario of weakening national currencies due to trade imbalances, governments typically move to reduce spending on imports which serve to curb the demand for foreign currency. To reduce spending on imported fossil fuels, the demand for energy must be supplemented or reduced. Simply putting quotas on importation (as the only measure) will only increase the prices residents pay. Arguably, this can create a ripe environment for innovation due to the numerous resulting adversities but the effects are likely to be too devastating. Supplementing the energy demand requires the use of alternative fuel sources under diversification schemes. Reduction in energy demand can be achieved through increased energy efficiency and conservation, improved water and waste management (which requires energy), and other means. Support at each Stage Support is required in the stages of feasibility assessment, development and testing, and commercialisation/implementation. After conceptualising an idea, it is necessary to test the quality and potential of an idea. An idea might be good but not suitable now or doesn’t improve previous solutions. Support is needed in the form of easy access to information, expertise, facilities, and sometimes funding. This is a crucial step which acts as a filter for ideas. Innovators might test the feasibility of an idea technically, financially, and socially (normally in that order). This variety of support is typically, on a larger scale, needed at the development and testing stage as well. Information can be made more accessible by creating a central point from which sources of specific knowledge are listed, creating and publicizing reports, and through knowledge broker services. Access to expertise can be improved though similar means as well as by, among others, forming more partnerships
  • 11. between the private sector and universities, research pooling, forming associations of professionals, conducting more events that facilitate networking, and publicising work done by experts. The commercialisation/implementation of an idea should be thoroughly planned. While innovators are adept at conceptualising and developing an idea, it is often the case that they lack the sufficient business and finance proficiency to successfully commercialise a product. Support then is needed to fill this gap. This support is often in the form of improving access to angel investors, attractive loans, grants, manufacturers and suppliers, software and web designers, market analysis experts, marketing strategy experts, and general business advice and support services.
  • 12. Barriers Behavioural Change Requirement The use of fossil fuels have shaped the way humans think about energy and how they go about conducting activities. The current energy infrastructure has been developed for fossil fuels. Modern fossil fuel power plants can produce reliable power at any time to meet demand. The high energy density of gasoline and diesel as well as historic cheapness have led to the norm of increasing usage to meet increasing demand. In the past, there was never a significant need to conserve energy and this has made humans high energy users (wasteful). Alternative sources such as solar and wind have a much lower energy density and cannot satisfy the current norms for electricity usage or transport. Also, they are intermittent and so not reliable to supply all the power to meet demands at all times. Their use requires a smart grid and expensive storage systems. Modern electric vehicles are known to offer very limited range when compared to typical petrol and diesel vehicles. Humans have gotten use to travelling over 500km on one tank and refuelling in less than 5 minutes. Electric vehicles typically offer less than 200km on a full charge and takes hours to fully recharge. The current status quo is to have energy when and where it is needed and to do so without depleting life savings. The need for behavioural change and attitude towards energy usage is then a barrier to low carbon innovation. Without behavioural change, ideas must not only reduce fossil fuel use but also maintain the status quo otherwise successful implementation will be hard to achieve. Availability and Access to Funding Low carbon innovation has had a reputation of requiring special government effort to promote investment. Funding is a requirement for all innovations. Many low carbon ideas require heavy funding from the public and private sectors. Most investors are profit-driven and so are looking to make money quickly which means the idea must have the potential to make large profits in short order. If the product is costly or will require significant behavioural change of consumers, it is unlikely
  • 13. to attract sufficient investment. This situation has resulted in governments, aware of the non-financial benefits, providing incentives to investors and consumers. The level of funding and provision of incentives varies by country but is often times inadequate. Government Policies Government policies play a key role in the innovation process. The process is likely to be more successful in a country that has created policies supporting reduction in GHG emissions, reduction in energy use, use of alternative fuel sources, use of energy efficient products, etc. These policies have strategies that provide incentives, incentives necessary for some products to be profitable. These policies are also key to catalysing behavioural changes. Technical As with many innovations, low carbon products face technical problems. These problems might exist in creating the product or in implementing a product in current infrastructure. Some technical problems lead to others such as high prices and requiring significant behavioural change. These problems, over time, might be solved by advances made through continued research and increased funding.
  • 14. Government Efforts The Jamaican and the Scottish governments have set low carbon goals. The Jamaican government have set a goal of 30% (revised from 20%) and 12.5% renewable energy contribution to the energy mix by 2030 and 2015 respectively. The exact contribution currently is roughly 7%. The commissioning of a new solar farm and two wind farms should increase this number to around 11%. The Scottish government set more ambitious low carbon goals of 80% of electricity and 11% of heat generated from renewables, 12% reduction in total energy consumption, and 42% reduction in emissions (interim to 80% by 2050) all by 2020. Net Scottish emissions were 26.4% lower than 1990 levels representing an average annual reduction of 1.2% compared to 3% the current requirement. The Jamaican government has produced several policy documents which describe its action plan for a low carbon and more energy efficient future. In terms of innovation support, there is one document that speaks to the use of science and technology to tackle problems. The Science and Technology for Socio-Economic Development policy speaks to the country realising it must use existing technology and knowledge to start tackling chronic production problems while building a stronger research and development base to seek answers and anticipate problems. The policy also mentions that the island possesses all fundamental infrastructural Science and Technology (S&T) components except for risk and venture funds for technology-led projects and pilot plant facilities. The document highlights the need for a closer working relationship between the public and private sectors and between academia and production. Other points highlighted by the document are:  The need to strengthen the role of innovation and the proper funding of S&T activities  The need for greater private sector participation in S&T development and application  Increasing allocation to R&D and S&T through direct and indirect taxation, use of funds from the National Lottery, and contributions from education tax collected.  The need to ensure that a sizeable portion of allocations to R&D actually goes towards R&D as opposed to salaries and administrative activities (the current scenario).
  • 15. The Scottish government released a similar policy document titled “Scotland Can Do: Becoming a World-Leading Entrepreneurial and Innovative Nation”. The document is a framework setting the vision for Scotland to become a world-leading entrepreneurial and innovative nation and outlines several ambitious goals including having an education system with entrepreneurship and innovation at its core and of course, to achieve an increase in innovation and entrepreneurship activity from Scottish individuals and businesses. Indicators to be used for measuring its progress are increases in number of businesses, research and development spending, and knowledge exchange from university research. Both documents primarily describe the current situation and where each country wants to be in the future but neither outlines exactly how they will achieve goals, at least in a thorough manner. The Scottish government released two documents which provides more specific action plans, namely “The Government Economic Strategy” and “A Low Carbon Economic Strategy.” The general economic strategy document identified the role of the government in creating a supportive business environment (with a focus on growth companies, growth sectors, and growth markets) which will accelerate the growth of the economy. To provide this supportive business environment, measures are to be taken in the areas on international trade and investment, supporting business growth, helping small businesses create jobs, growth sectors, innovation and commercialisation, and taxation. In the area of international trade and investment, some of the commitments by the government are:  Prioritising lending, from the Scottish Investment Bank, to support SME’s with international ambitions and the Export Support Initiative will continue to deliver advice and support to SME’s with export potential.  Supporting, through the Scottish development International, 8000-10000 more businesses in developing skills necessary to facilitate exploitation of international markets by 2015. In the area of supporting business growth, the government has, among others, committed to:  Offering support, through Skills Development Scotland, to make it easier for SME’s to hire staff and take on apprentices
  • 16.  Continuing the advice and support services to potential start-up and early stage businesses through Business Gateway  Extend the success of Public Contracts Scotland – a free-to-access portal which has improved access to public contract opportunities In the area of growth sectors, some commitments by the government are:  Through Creative Scotland, support investment opportunities in the creative industries  Investing in universities to secure more economic and social benefits and also to develop partnerships with businesses to exploit their research. In the area of innovation and commercialisation, some commitments by the government are:  Launching a centralised point of access interface for businesses to knowledge and expertise within universities and research institutes in Scotland.  Streamlining the support delivered by Scottish Enterprise and Highlands and Islands Enterprise for commercialisation and innovation. In the area of taxation, the government has, among others, committed to:  Continuing the Small Business Bonus Scheme (SBBS) which provides a discount (25% to 100%) on business rates bills for eligible business properties  Continue freezing council tax bills at a time of rising prices and increasing UK Government taxation in the hopes of boosting consumer spending. While the low carbon strategy document does not outline a wide variety of relevant steps for supporting innovation, the goals or targets set by the government (basically reducing GHG emissions, improving energy efficiency and conservation, and increasing the use of renewables) creates an environment supportive of low carbon innovation. Three relevant specific steps outlined are:
  • 17.  Promoting low carbon lifestyles to inspire local action in communities through the Climate Challenge Fund.  Promoting, through the Vision in Business for the Environment in Scotland Awards, excellence in business innovation in tackling emissions and improving environmental performance.  Working with various bodies to establish new technology hubs/alliances to act as focal points for low carbon innovation. In general, it is clear that the government policy in place to support innovation in Jamaica is in its infancy and is neither specific nor thorough. On the other hand, the Scottish government has addressed support for innovation in all stages from conceptualisation to commercialisation.
  • 18. Support at Each Stage The tables below shows government measures in place to support stages in the innovation process. Conceptualisation, this process requires a need, incentive, or challenge to develop solutions for problems. Jamaica Scotland  Set goal of increasing the share of renewables in the energy mix to 30% by 2030  Promotes the need for a low carbon lifestyle  Set goal of reducing GHG emissions by 42% by 2050  Set goal of significant decarbonisation of road and rail transportation by 2050  Set goal of reducing final energy use by 12% through energy efficiency measures by 2020  Set goal of 80% share of electricity energy mix coming from renewables by 2020  Promotes the need for a low carbon lifestyle Feasibility Assessment and Development and Testing, these two stages are joined together here because they often require similar support measures even though they are very distinct stages. Support required is often in the form of market analysis services, investment, expertise, access to facilities, and business advice. Jamaica Scotland  Government encourages greater private sector participation in Science and Technology Development  Government plan to establish new technology hubs/alliances  Export Support Initiative  Skills Development Scotland
  • 19.  Research institutions increasing allocations to research that solves local problems  Provision of Awards  Caribbean Climate Innovation Centre  Office of Research and Innovation (University of the West Indies, not low carbon exclusive)  Technology Innovation Centre (University of Technology, not low carbon exclusive)  Jamaica Venture Capital Programme  Business Gateway  Government launch of a centralised point of access to knowledge and expertise by businesses  Government investing in universities to support partnership with businesses to exploit research  Provision of awards  Incubators and Accelerators Commercialisation and Implementation, this stage requires access to, among others, incentives, funding, marketing services, trained and skilled staff, networks of suppliers, and business support and advice. Jamaica Scotland  Jamaica Venture Capital Programme  Caribbean Climate Innovation Centre  Streamlining of support from Scottish Enterprise and Highland and Island Enterprise for commercialisation and innovation  Carbon Trust  Incubators and Accelerators  Low Carbon Infrastructure Transition Programme
  • 20. Addressing Barriers In this section, government measures in place to address barriers in the innovation process are highlighted. Behavioural change, this is a necessary step for those innovations which requires changes to norms for acceptance by end users. Such innovations are not able to be implemented or used satisfactorily with current attitudes and behaviours. Change can be achieved through passive means or forced using regulatory means such as bans, quotas, and taxation. Jamaica Scotland  Promoting energy conservation in the workplace and in households  By not subsidising high fuel and electricity costs (whether intentional or not), results in high energy costs which encourages conservation and the consumption of innovative products to reduce energy costs  Incentivising low carbon energy investment  Promoting energy conservation in the workplace and in households  Implementing more stringent emission requirements for vehicles, industries, and power plants  Plan to make energy efficiency in houses a national infrastructure priority  Incentivising green energy investment Access to Funding, a factor necessary for all innovations, must be addressed for a successful innovative process. Funding can be in the form of attractive and specific loans, grants, and investors. Also, removing or reducing taxes can be seen as reducing the barrier of access to funds as it effectively reduces the amount of funding required. Also, access to funding can be improved by making it easier for entrepreneurs and entities to find funding sources.
  • 21. Jamaica Scotland  Green energy loans from private financial institutions with “attractive” interest rates  Providing “low” interest loans through the through public sector financial institutions  National Innovation Awards  Caribbean Climate Innovation Centre’s Proof of Concept Grant  First Angel Jamaica  Jamaica Venture Capital Programme  Providing fiscal and financial incentives  Government grants  Small business loans from private financial institutions  Infrastructure and Innovation Fund  Created a central point for access to business support services and funding sources  Several venture capital entities  Several angel investor networks  Small Business Bonus Scheme (SBBS)  Freezing council tax bills  Low interest loans Government Policies, these play a critical role at each stage of the innovation process. Policies can help or deter the stimulation of conceptualisation, development and testing of solutions, and the ease of full-scale production or implementation. It is therefore important for the government to set the stage which allows an enabling environment to develop. Various government actions which have made it easier for the innovation process were stated earlier in the previous section. Some areas which policies and implementations by the government of Jamaica can improve are the ease of doing business (commendable strides have been made but there is room for improvement), tax incentives for start-ups, and high interest rates on loans (lower rates can be made available for low carbon companies).
  • 22. Technical Barriers, these are idea specific and typically require investment, expertise, access to specialised equipment, and innovation. Jamaica Scotland  Increasing partnerships between universities and the private sector.  Skills and capacity building workshops  Increasing partnerships between universities and the private sector.  Skills and capacity building workshops  Technology accelerators  Knowledge exchange  Research pooling
  • 23. Conclusion The difference in the development status between Scotland and Jamaica is mirrored in the difference between the innovation support systems of both countries and perhaps, the two (development and innovation) share a cause and effect relationship. The Scottish innovation system shows more signs of specific focus, planning, organisation, and investment. Innovation is given a much higher level of importance which shows in the actions by the Scottish government and private sector. It is possible though, that the Jamaican government places high importance on innovation but the relatively small economy and financial woes limit their ability to support innovation on a larger scale. In terms of support at each stage in Jamaica, the weakest area is commercialisation and implementation. The other stages are supported fairly well but there is much room for improvement. In terms of barriers most work is needed in increasing access to venture capital funds, addressing technical barriers and developing a specific policy for innovation. Funding is available but high interest rates makes them not the most accessible.
  • 24. Recommendations While the recent efforts made by the Jamaican government (for innovation in general) are commendable, there is much room for improvement (both general and especially for low carbon). A strategic approach should be taken to address the barriers to and create the nurturing environment for low carbon innovation. Such approach should be specific, thoroughly planned, and involve all stakeholders (public and private sectors, communities, foreign partners, etc.) Currently, there are no policies specific to low carbon innovation support and that is an excellent place to start. Such a policy should cover action plans for most if not all areas related to low carbon innovation. The government should make use of international best practices. To further encourage conceptualisation, the government should consider:  Encouraging businesses to develop an innovative culture and be more proactive about solving their problems rather than just complain about problems like high energy prices  Putting more pressure on academic institutions to shift knowledge supply to match knowledge demand that is based on problems in the country  Adding innovation and entrepreneurial modules in secondary and tertiary-level institutions.  Publicise the importance for and current innovation in Jamaica  Set more specific low carbon goals to cover transport fuel, emissions, electricity generation, and energy use per capita measures To support the stages of feasibility assessment and development and testing, the government should consider:  Working with appropriate entities to increase access to technologies and the internet  Increasing accessibility of business support and advice  Working with international partners to solve problems of lack of access to equipment and expertise
  • 25.  Encouraging more secondments and internship placements To support the commercialisation and implementation stage, the government should consider:  Creating a one stop website for access to marketing, financial, and business experts  Partnering with the private sector to create a low carbon specific start-up accelerator or incubator  Establishing an agenda to increase the quality and exportation of Jamaican products and services To address the barrier of funding, the government should consider:  Lowering interest rates on low carbon business loans  Providing fiscal and financial incentives for businesses and investors that fund innovation and R&D To address technical barriers, the government should consider:  Increase partnerships with universities and research centres abroad to encourage research pooling and knowledge exchange  Build capacity for developing low carbon products locally, regionally, and internationally  Access expertise present in multinational companies operating in the island  Encourage multinational companies operating in the island to provide internships to locals It is highly recommended that the government work to see the creation of a one-stop low carbon innovation incubator (and/or accelerator) entity (such as ECCI) which provides support at all stages in the innovation process. This entity should be tasked with creating databases and relationships with researchers, consultants, angel investors, venture capitalists, financial institutions, market analysts, marketing managers, legal firms, and manufacturers. These databases will help to assist innovators at
  • 26. the feasibility assessment, developing and testing, and commercialisation and implementation stages. The intent is to minimise time spent by innovators looking for assistance and concepts (marketing, financial, scientific, etc.) while maximising time spent on active progression. Also, this entity will, through the database and good relationships with relevant parties, address some technical and financial barriers. Frequent bulletins promoting low carbon technologies and practices, progress of low carbon start-ups, major low carbon achievements in the private and public sectors, and the impacts of carbon-intensive practices should be heavily publicised. The operating costs of this entity should be met with a combination of start-up equity income, government funds, member fees (members should be encouraged to get sponsorship from the private sector), fees from hosting events (conferences, workshops, etc.), selling publications, and other means.