The document discusses measuring innovation for sustainability and the green economy. It describes the NETGREEN project, which analyzed existing indicators for measuring progress toward sustainable development and the green economy. It discusses challenges in measuring eco-innovation, as the effects of innovation on the environment are indirect. Eco-innovation indicators attempt to capture different stages of impact, from inputs like R&D to outputs like patents to outcomes like new technologies and environmental impacts. However, indicators are often misunderstood because their interrelations are complex. There is a need for better access to indicators and explanation of their appropriate uses and limitations.

1. Innovation Measurement and
Learning
Analysis from measuring-progress.eu
Lucas Porsch, Ecologic Institute
12/15/2015www.measuring-progress.eu

2. www.netgreen-project.eu
Content
NETGREEN and measuring-progress.eu
The measurement of Eco-Innovation
Indicators and measuring systems
Challenges
Identified Knowledge Gaps
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3. www.netgreen-project.eu
The NETGREEN project (EU funded)
Two-year research project of six research
institutions
Systematic and consistent overview on the
existing efforts to measure SD and the Green
Economy
15.10.2015Paris, Green Growth and Sustainable Development Forum, Lucas Porsch
Need for green
economy and SD
indicators
Unused or misused
green economy and
SD indicators

4. www.netgreen-project.eu
15.10.2015Paris, Green Growth and Sustainable Development Forum, Lucas Porsch
Measuring-Progress.eu
An interactive online
tool for policy-makers
and the people trying
to influence them
Designed to help users
identify and
understand green
economy indicators.
Supports users in the
search for the right
indicators for a
specific policy problem
Helps users interpret
the strengths and
shortcomings of an
indicator

5. www.netgreen-project.eu
15.10.2015Paris, Green Growth and Sustainable Development Forum, Lucas Porsch
GREEN
ECONOMY
Environmental
Sustainability
Quality of Life
Economic
Sustainability
and Resilience
Effective
Governance
Social Justice
Environmental Conditions
Environmental Pressures
Environmental Change
Health
Education
Occupation
Social Cohesion
Time use
Local Environment
Financial Situation
Subjective Well-being
Human Capital
Manufacturing Capital
Financial Capital
Progress Towards GE
Circular Economy
Business Resilience
Global Stewardship
Policy and Decision
Making
Intragenerational
Equality
Intergenerational
Equality
Access to resources
and services
Democracy and
Institutions

6. www.netgreen-project.eu
Measuring Eco-Innovation I
„Innovation resulting in or aiming at significant
progress towards the SDGs and reducing
environmental pressures .....“ (EU 2011)
The effect of innovation on the environment is very
indirect and evidence for the effect is difficult to obtain
Eco innovation indicators try to capture the different
stages of the impact chain:
Eco Innovation inputs (eg. R&D spending)
Eco Innovation activities (eg. research projects, pilot products)
Eco Innovation outputs (eg. patents)
Eco Innovation outcomes (eg. new technologies on the market)
Socio Economic outcomes (eg. reduced env. pressures)
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7. www.netgreen-project.eu
Measuring Eco-Innovation II
Challenge: Different indicators are interrelated and the
interrelations need to be understood for interpretation
Composite indicators mask those interrelations and are more
difficult to interpret
Policy makers and those trying to influence them need to
understand the full impact chain to choose appropriate measures
What is the innovation and the production processes it changes?
Does the innovation contribute to SD or the Green Economy if
applied?
What are the different steps of the impact chain of the contribution?
What are the conditions and assumptions for the impacts of the
innovation?
12/16/20157 Paris, Green Growth and Sustainable Development Forum, Lucas Porsch

8. www.netgreen-project.eu
Measuring Eco-Innovation III
Three steps to understand an indicator: www.measuring-progress.eu
12/16/20158 Paris, Green Growth and Sustainable Development Forum, Lucas Porsch
Understand the contribution to the green
economy and how it is supposed to work
(eg. impact chain)
Understand in which cases (conditions)
the assumed impact chain does not work
Understand which indicators can be used
to check for those cases and conditions

9. www.netgreen-project.eu
Measuring Eco-Innovation III
Example: Share of turnover from innovation
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A high share of turnover from innovation shows that
companies are willingly adapting innovation (including eco-
innovation)
No impact or less impact due to:
•Innovation versus Eco-innovation
•Turnover from innovation not necessarily use of innovation
•Rebound effects
Indicators to understand green tech patents:
•Patents in eco innovation compared to innovation
•Use of environmentally friendly products (Eco labels)
•Usage patterns
•Environmental impacts

10. www.netgreen-project.eu
Most Important Knowledge Gaps
Significant body of available indicators but too little usage
Easier access and more and better explanation of indicators
needed
Still indicators needed to understand the impact chain of eco
innovation
Green Tech indicators defined as any innovation that helps “reducing
environmental impacts” (Currently to much focus on clean tech)
Indicators are chosen on the basis of “straightforward” impact chain
Indicators on diffusion of green tech (available are some indicators on
labelling)
Indicators that combine usage patterns and efficiency data
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11. www.netgreen-project.eu
Questions
What are for you the most important misinterpretations of eco
innovation measurements?
For which steps in the impact chain do we need better
measurements?
What type of indicators and would information with them would
help the policy process for Eco Innovation?
12/16/201511 Paris, Green Growth and Sustainable Development Forum, Lucas Porsch

12. www.netgreen-project.eu
NETGREEN - List of Partners
Ecologic Institute
CEPS The Centre for European
Policy Studies
NEF Economics as if People and
the Planet mattered
Green Economy Coalition
CENSE Centre for Environmental and
Sustainability Research
LEI – Wageningen UR
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