Innovation day 2012 13. olivia de ruyck - verhaert - 'critical succes factor of eco-innovation insights of a pan-european study'
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Innovation day 2012 13. olivia de ruyck - verhaert - 'critical succes factor of eco-innovation insights of a pan-european study'
- 1. October 26th 2012 Slide 2 CRITICAL SUCCESS FACTORS OF ECO- INNOVATION: INSIGHTS OF A PAN- EUROPEAN STUDY CONFIDENTIAL Olivia De Ruyck Innovation consultant Olivia.deruyck@verhaert.com
- 2. October 26th 2012 Slide 3 OECD: Organisation for Economic Co-Operation and Development What is OECD? • A “club” of 30 industrialized countries • Forum for policy dialogue and development based on science and technology • Provider of instruments for harmonization, co-operation, cost sharing and outreach • This project about eco innovation. • Verhaert is recognized eco- innovation expert by OECD adjunct-secretaris-generaal Role of OECD?
- 3. October 26th 2012 Slide 4 What is eco innovation? ‘Eco-innovation is the process of developing new products, processes or services which provide customer and business value but significantly decrease environmental impact.’ Fussler, C. and James, P. (1996) Eco-innovation: A Breakthrough Discipline for Innovation and Sustainability (Pitman Publishing).
- 4. October 26th 2012 Slide 5 Can Europe combine ambitious environmental objectives with strong industrial competitiveness? Eco innovation aims at creating economic & environmental value • Ecologic: EU’s Co2 reduction targets: -20-30% by 2020 > 80% by 2050
- 5. October 26th 2012 Slide 6 Can Europe combine ambitious environmental objectives with strong industrial competitiveness? • Economic: Eg. Japan, USA: eco innovation at the heart of their strategy for the 21st century Trend in publications on eco-innovation
- 6. October 26th 2012 Slide 7 Why is there a need to stimulate eco innovation in Europe? Markets by themselves will not deliver the needed solutions. Clear policy signals are essential
- 7. October 26th 2012 Slide 8 55 case studies from 14 countries: Business models classified as: • Greener product/process based models • Waste regeneration systems • Alternative energy-based systems • Efficiency optimisation by ICT • Functional sales and management services • Innovative financing schemes • Sustainable mobility systems • Industrial symbiosis • Green neighbourhoods and cities.
- 8. October 26th 2012 Slide 9 What is the goal of the project? Incremental innovations will not lead to a technological & ecological shift. Explore the potential of radical & systemic eco innovation and learn how successes can be further extended and accelerated through the application and elaboration of innovation policy
- 9. October 26th 2012 Slide 10 Degrees of innovation Degrees of eco-innovation? Incremental Substantial Radical G r a v e t y o f u n m e t n e e d Comparativeeffectiveness 0 = no change 1 = total cure 0=Trivial 1=Depth
- 10. October 26th 2012 Slide 11 Degrees of innovation Eco efficiency Lifecycle management Closed loop production (cradle to cradle) Industrial symbiosis Green products Eco - design Product service systems New models of provision Spatial application I N C R E M E N TA L / D I S R U P T I V E I N N O VAT I O N R A D I C A L / S Y S T E M I C I N N O VAT I O N PRODUCTION PROCESS PRODUCT & SERVICES Pollution control Cleaner production O r g a n i z a t i o n a l b a r r i e r
- 11. October 26th 2012 Slide 12 Success factors to introducing eco innovations Source OECD Success factors of eco-innovation?
- 12. October 26th 2012 Slide 13 Success factors to introducing eco innovations OECD Report Insights 1. Alliances with other firms and stakeholders: Many firms implemented their eco-innovations in co-operation with other firms, local authorities and other stakeholders. Example: The Kalundborg industrial symbiosis project in Denmark
- 13. October 26th 2012 Slide 14 Success factors to introducing new business models OECD Report Insights 2. Challenge the business models of existing firms: New and young firms are prone to exploiting technological or commercial opportunities which have been neglected by more established companies. Example: Better Place NOTE: Policy needs to create the room for such new firms by enabling their entry, exit and growth, ensuring fair competition and improving access to finance, which remains a major constraint for the entry and growth of young firms.
- 14. October 26th 2012 Slide 16 Success factors to introducing new business models OECD Report Insights 3. Reinforce Customer behavior: Knowledge of green consumer behavior is important for environmental and business reasons. Eco innovations are first adopted by lead-users before coming to the mean stream user. Marketing campaigns and or financial stimulation can facilitate customer behavior. Example: E-bike sharing
- 15. October 26th 2012 Slide 17 Success factors to introducing eco innovations OECD Report Insights 4. Dedicated Leadership for assimilating big changes: The dedication of the firms leadership is an important driver for assimilating changes and introducing new eco-innovation concepts as cradle-to-cradle and closed-loop production. Source Live Long and prosper – James Gray
- 16. October 26th 2012 Slide 18 VERHAERT MASTERS IN INNOVATION® Headquarters Hogenakkerhoekstraat 21 9150 Kruibeke (B) tel +32 (0)3 250 19 00 fax +32 (0)3 254 10 08 ezine@verhaert.com More at www.verhaert.com VERHAERT MASTERS IN INNOVATION® Netherlands European Space Innovation Centre Kapteynstraat 1 2201 BB Noordwijk (NL) Tel: +31 (0)633 666 828 willard.vanderheijden@verhaert.com More at www.verhaert.com VERHAERT MASTERS IN INNOVATION® helps companies and governments to innovate. We design products and systems for organizations looking for new ways to provide value for their customers. We are a leading integrated product innovation center; creating technology platforms, developing new products and business in parallel, hence facilitating new-growth strategies for our clients.
Editor's Notes
- Eco-innovation is at the heart of the 2007 Japanese Strategy for Sustainable Society in the 21st Century1 and is explicitly referred to in a number of key policy documents (OECD, 2008b). The Ministry of Economy, Trade and Industry (METI) defines eco-innovation as “techno-social innovations to meet environmental challenges, resource constraints and diversification of values among the people with compatibility between economy and environment”.
- Eco-innovation is at the heart of the 2007 Japanese Strategy for Sustainable Society in the 21st Century1 and is explicitly referred to in a number of key policy documents (OECD, 2008b). The Ministry of Economy, Trade and Industry (METI) defines eco-innovation as “techno-social innovations to meet environmental challenges, resource constraints and diversification of values among the people with compatibility between economy and environment”.
- POLICY: Vervuiling = afremmen, eco producten = stimuleren Need governments & industry support to: Change price signals eg. environmental taxes Standards & regulations Delivering green skills Supporting environmental technologies Labour markets
- Eco-innovation is at the heart of the 2007 Japanese Strategy for Sustainable Society in the 21st Century1 and is explicitly referred to in a number of key policy documents (OECD, 2008b). The Ministry of Economy, Trade and Industry (METI) defines eco-innovation as “techno-social innovations to meet environmental challenges, resource constraints and diversification of values among the people with compatibility between economy and environment”.
- -Vragen kent iedereen termen incremental en radical innovation? (uitleg kunnen geven over disruptive : opzoeken) -More radical forms of eco-innovation may be the key to enabling such a sustainable transition. Clearly, incremental improvements are very important although they may also help to lock social practices into existing trajectories and thus make radical solutions, which require changes in the current technological or infrastructural regime, more difficult to be deployed (Hellström, 2007). Investing in radical solutions is therefore important and can maximise long-term gains and wider impacts
- Incremental innovation, which aims at modifying and improving existing technologies or -ecoBv; delhaize: gen zakjes, vervoer in dubbeldekker trucks… - bv. Disruptive innovation, which changes how things are done or specific technological functions Radical innovation, which involves a shift in the technological regime of an economy
- Radical innovation: Closed loop proces = cradle to cradle Incremental innovation, which aims at modifying and improving existing technologies or processes to raise the efficiency of resource and energy use, without fundamentally changing the underlying core technologies. Surveys of innovation in firms demonstrate that this is the dominant form of innovation and eco-innovation in industry; • Disruptive innovation, which changes how things are done or specific technological functions are fulfilled, without necessarily changing the underlying technological regime itself. Examples include the move from manual to electric typewriters and to word processors, or the change from incandescent to fluorescent lighting; • Radical innovation, which involves a shift in the technological regime of an economy and can lead to changes in enabling technologies. This type of innovation is often complex and is more likely to involve non-technological changes and mobilise diverse actors. Radical innovations include not only the development of radical, breakthrough technologies but also a reconfiguration of product-service systems, for example, by closing the loop from resource input to waste output or “cradle to cradle” and the building of business models that re-shape the way consumers receive value on the one hand and reduce material use on the other.
- Iets over hoe belangrijk business model aanpak is voor radicale ideeën. Nieuw businessmodel, partnerships, regulatie… zijn motoren die eco innovatie in gang kunnen zetten. They generate (in gang zetten) a change in the consumer behavior. Link naar osterwalder En met vooorbeeldje naar
- Alliances with other firms and stakeholders: The case studies demonstrate that many firms implemented their eco-innovations in co-operation with other firms, local authorities and other stakeholders. For instance, Better Place entered into alliances with electric car and battery manufacturers and renewable energy producers. Such alliances were seen as win-win opportunities for all the participating groups. Co-operation with local authorities is often a pre-requisite for large-scale projects like industrial symbiosis and new transport systems. Good communication is also critical to the success of some projects. The Kalundborg industrial symbiosis project in Denmark was facilitated by the already established acquaintance between managers of different local firms, their open, non-secretive management style and co-operation opportunities gained previously from other projects. Corporate social responsibility: The consideration of corporate social responsibility (CSR) in the firms management and strategies is highlighted as another important factor for driving eco-innovation. Many firms have started engaging CSR as a core aspect of their innovation strategy and, as a result, including social and environmental concerns in their core business models. Dedicated Leadership: The dedication of the firms leadership is an important driver for assimilating changes and introducing new eco-innovation concepts as cradle-to-cradle and closed-loop production. For example, the introduction of “upcycling” water purification system and the use of bioplastics in bottled water production by Good Water Company in the United States owes largely to its leaders drive and dedication to sustainability goals.
- Alliances with other firms and stakeholders: The case studies demonstrate that many firms implemented their eco-innovations in co-operation with other firms, local authorities and other stakeholders. For instance, Better Place entered into alliances with electric car and battery manufacturers and renewable energy producers. Such alliances were seen as win-win opportunities for all the participating groups. Co-operation with local authorities is often a pre-requisite for large-scale projects like industrial symbiosis and new transport systems. Good communication is also critical to the success of some projects. The Kalundborg industrial symbiosis project in Denmark was facilitated by the already established acquaintance between managers of different local firms, their open, non-secretive management style and co-operation opportunities gained previously from other projects. Corporate social responsibility: The consideration of corporate social responsibility (CSR) in the firms management and strategies is highlighted as another important factor for driving eco-innovation. Many firms have started engaging CSR as a core aspect of their innovation strategy and, as a result, including social and environmental concerns in their core business models. Dedicated Leadership: The dedication of the firms leadership is an important driver for assimilating changes and introducing new eco-innovation concepts as cradle-to-cradle and closed-loop production. For example, the introduction of “upcycling” water purification system and the use of bioplastics in bottled water production by Good Water Company in the United States owes largely to its leaders drive and dedication to sustainability goals.
- Alliances with other firms and stakeholders: The case studies demonstrate that many firms implemented their eco-innovations in co-operation with other firms, local authorities and other stakeholders. For instance, Better Place entered into alliances with electric car and battery manufacturers and renewable energy producers. Such alliances were seen as win-win opportunities for all the participating groups. Co-operation with local authorities is often a pre-requisite for large-scale projects like industrial symbiosis and new transport systems. Good communication is also critical to the success of some projects. The Kalundborg industrial symbiosis project in Denmark was facilitated by the already established acquaintance between managers of different local firms, their open, non-secretive management style and co-operation opportunities gained previously from other projects. Corporate social responsibility: The consideration of corporate social responsibility (CSR) in the firms management and strategies is highlighted as another important factor for driving eco-innovation. Many firms have started engaging CSR as a core aspect of their innovation strategy and, as a result, including social and environmental concerns in their core business models. Dedicated Leadership: The dedication of the firms leadership is an important driver for assimilating changes and introducing new eco-innovation concepts as cradle-to-cradle and closed-loop production. For example, the introduction of “upcycling” water purification system and the use of bioplastics in bottled water production by Good Water Company in the United States owes largely to its leaders drive and dedication to sustainability goals.
- Alliances with other firms and stakeholders: The case studies demonstrate that many firms implemented their eco-innovations in co-operation with other firms, local authorities and other stakeholders. For instance, Better Place entered into alliances with electric car and battery manufacturers and renewable energy producers. Such alliances were seen as win-win opportunities for all the participating groups. Co-operation with local authorities is often a pre-requisite for large-scale projects like industrial symbiosis and new transport systems. Good communication is also critical to the success of some projects. The Kalundborg industrial symbiosis project in Denmark was facilitated by the already established acquaintance between managers of different local firms, their open, non-secretive management style and co-operation opportunities gained previously from other projects. Corporate social responsibility: The consideration of corporate social responsibility (CSR) in the firms management and strategies is highlighted as another important factor for driving eco-innovation. Many firms have started engaging CSR as a core aspect of their innovation strategy and, as a result, including social and environmental concerns in their core business models. Dedicated Leadership: The dedication of the firms leadership is an important driver for assimilating changes and introducing new eco-innovation concepts as cradle-to-cradle and closed-loop production. For example, the introduction of “upcycling” water purification system and the use of bioplastics in bottled water production by Good Water Company in the United States owes largely to its leaders drive and dedication to sustainability goals.