Eco-Innovation Policies: Concepts, Best Practices and Monitoring - - PowerPoint PPT Presentation

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Eco-Innovation Policies: Concepts, Best Practices and Monitoring - - PowerPoint PPT Presentation

Eco-Innovation Policies: Concepts, Best Practices and Monitoring Dr. Klaus Rennings Centre of European Economic Research Zentrum fr Europische Wirtschaftsforschung (ZEW) In-Stream Workshop Berlin, July 7 2011 Structure 1. Introduction


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Eco-Innovation Policies: Concepts, Best Practices and Monitoring

  • Dr. Klaus Rennings

Centre of European Economic Research Zentrum für Europäische Wirtschaftsforschung (ZEW) In-Stream Workshop Berlin, July 7 2011

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Structure

  • 1. Introduction and main message
  • 2. Economic and ecological concepts of eco-innovation policy
  • 3. Definition and Measurement: Best Practices of Monitoring and

Reporting

  • 4. Conclusions and research needs
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Structure

  • 1. Introduction and main message
  • 2. Economic and ecological concepts of eco-innovation policy
  • 3. Definition and Measurement: Best Practices of Monitoring and

Reporting

  • 4. Conclusions and research needs
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  • 1. Take Home Message

During the first decade of the century eco-innovation research and policy have co-evolved from an idea and vision to a very segmented area

  • f research and policy making

Probable reason: Eco-innovation is seen by most as a win-win- strategy helping the environment and economy, thus leading to sustainable development Is that always the case? No, but more often than in any other strategy reaching for sustainable development

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Structure

  • 1. Introduction and main message
  • 2. Economic and ecological concepts of eco-innovation policy
  • 3. Definition and Measurement: Best Practices of Monitoring and

Reporting

  • 4. Conclusions and research needs
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  • 2. Economic and ecological

concepts of eco-innovation policy

Eco-innovation Policy

  • Many firms, reseachers, stakeholders, ministries

involved:

  • Environment, Research, Enterprise, Energy,

Tansport etc.

  • Co-ordination of policies better idea than integration
  • No super-ministry of eco-innovation
  • Responsibility typically at the level of the ministries,

for a certain initiative one ministry takes the lead

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Policy integration vs. Co-

  • rdination

Integration: New Super- Ministry of Research, Economics and Environment

Maybe something like METI in Japan?

Co-ordination: Ministries of Research, Economics and Environment work together

Role: Research: Basic, long term research Economics: Short term technologies Environment: Environmental Policies

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Best Practice EU: Three DGs and an Agency running the calls for (short term )projects

DG Research DG Enterprise DG Environment Framework Programme Innovation Policy Environmental Policy Executive Agency for Eco-Innovation Running the eco-innovation programme in the CIP (Competitiveness and Innovation) Programme), e.g. call for projects

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Chinas Double Top Down Eco-Innovation Low Carbon Policy Approach

General Plan (NDRC as Co-ordinator))

Lead: National Development and Reform Commission (NDRC)

Key Responsibilities: Ministry of State Science and Technology (MOST): Public Private Partnerships Chinese Academy of Science (CAS): Basic and Applied Reseach Ministry of State Environmental Protection (MEP) Ministry of Industry and Information Technology (MIIT): Industry Innovation Programmes China Meteorological Administration (CMA)

Implementation: Autonomous provinces, first movers such as Zhejiang

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Best Bractice Germany: Masterplan Environmental Technologies

  • Part of the German Hightech-Strategy
  • Joint initiative from German ministries of research and

environment

  • Goals:
  • Strenghten leading postion on world market for

environmental technologies

  • link innovation- and environmental policy
  • develop new markets for environmental technologies

Includes:

  • Measures for technology support and diffusion
  • Meaures for internationalisation and qualification
  • Support of SMEs
  • Cross-cutting measures
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Most important in any approach: Aliegnation of actors with common visions and targets Best Practice: EU 20-20-20 targets, or Transition Management in the Netherlands: Oriented at long term policy targets: Clean & Efficient 2007-2010 But also e.g. G-20 Meetings and Shanghai Expo vision are important

Targets (2020)

  • 30% CO2-reduction
  • 20% renewable energy
  • 2% annual energy efficiency increase
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  • 2. Economic and ecological

concepts of eco-innovation policy

  • Strategies for eco-innovation depend on your underlying
  • concept. i.e. your way of thinking!

Different economic perspectives exist: Neoclassical economic concept

  • Eco-innovation is seen as a problem of „double externality“

(Rennings, 2000), i.e. negative external environmental external effects of pollution and positive environmental spillovers of innovation

  • The goal of eco-innovation policy is to correct market failure:
  • e.g. incomplete information by eco-labels
  • e.g. internalize external effects by emissions trading
  • e.g. positive spillovers from innovation by subsidies for

basic research

  • and by protecting intellectual property rigths
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  • 2. Economic and ecological

concepts of eco-innovation policy

Evolutionary economics concept

  • Systems approach: how to get from system A to

system B?

  • Regime Shift: how to get from an unsustainable

system (e.g. fossil fuels) to a sustainable one (e.g. based on renewables)

  • Lock-in effects of exisiting technological trajectories

have to be overcome

  • Eco-innovation policy should support experiments,

manage new niches and help to scale them up to the mass market

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  • 2. Economic and ecological

concepts of eco-innovation policy

Concepts from Industrial Ecolocy

  • Environmental problems seen as a problem of

industrial metabolism

  • Material flows and material cycles have to be

reduced to maintain a sustainable level

  • a. Life Cycle Assessment: Product assessment from

cradle to grave, development of eco-efficiency indicators

  • b. Material Flow Accounting, develops macro-level

indicators for resource efficiency

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Structure

  • 1. Introduction and main message
  • 2. Economic and ecological concepts of eco-innovation policy
  • 3. Definition and Measurement: Best Practices of Monitoring and

Reporting

  • 4. Conclusions and research needs
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SLIDE 16
  • 3. Definition and Measurement: Best

Practices of Monitoring and Reporting

Definition used in the EU-Project „Measuring Environmental Innoation“ (MEI): “Eco-innovation is the production, application or exploitation of a good, service, production process, organisational structure, or management or business method that is novel to the firm or user and which results, throughout its life cycle, in a reduction of environmental risk, pollution and the negative impacts

  • f resources use (including energy use) compared to relevant alternatives”.

(Kemp und Pearson, 2008, Final report MEI project about measuring eco-

  • innovation. www.merit.unu.edu\MEI).

Definition highlights:

  • Novelty (for firm)

Different from : novelty for market, world Radicalness of innovation

  • Emphasis on results (in contrast to motivation)
  • Compared to relevant (i.e. conventional) alternatives, e.g. energy saving light

bulbs comapred to conventional bulbs

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Methods of Monitoring

Definition is oriented at Oslo-Manual from empirical innovation research OECD/Eurostat (2005):

  • Includes technical process- and product innovations
  • as well as organisational innovations

Main monitoring methods still are (see MEI):

  • Innovation Surveys (e.g. CIS –Community Innovation

Survey)

  • Patent analysis
  • Bibliometric methods
  • Until 2010 no regular monitoring activity

But: Eco-innovation observatory set up in EU CIP- Programme

  • Now online: http://www.eco-innovation.eu
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A Cerro Tololo Sky (Chile) Credit: Roger Smith, AURA, NOAO, NSF

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What is the Eco-Innovation Observatory?

 Objective

 to provide analysis on eco‐innovation and liaise with related initiatives

 Activities

 to collect and analyse data on future market and technology trends;  to publish an annual report on the selected market segments of eco‐

innovation in the European Union;

 to provide “market and technology intelligence” for SMEs and

innovation support providers;

 to recommend how to deliver SME specific eco‐innovation information.

 Duration: 3 years  EIO is extending the definition of eco‐innovation from a neo‐classical

  • ne (Oslo Manual) to an even broader one including the evolutionary

approach (systems innovation), life cycle approach (eco‐efficiency) and material efficiency (resource efficiency)

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Some more Best Practices of Reporting The OECD survey 2003

Figure 2: Choice of Environmental Technologies in Seven OECD Countries

In % 1 00 1 80 8 20 2 40 4 60 6 end-of-pipe Germ any N

  • rw

ay F ran ce Hung ary J apan U nited S tates Canada cleaner produc tion

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Distribution of "environmentally efficient innovators" by industry in Germany 2004

Sector as a percentage of all firms who in 2002-2004 introduced new products and/or processes which had significant effects on cuts in material or energy costs per unit/procedure. Note: Firms having at least 5 employees in the sectors 10-41, 51- 60-67, 72-74, 90 in

  • Germany. All figures are extrapolated to the total firm population in Germany. Source: ZEW, Mannheim Innovation Panel, Survey 2005

2 4 6 8 10 12 14 16 20 22 24 Mining Software and telecommunications Financial intermediation Energy and water Textiles, clothes, leather Glass, ceramics, stoneware Vehicles

Chemicals, pharmaceuticals, petroleum

Consulting and advertising Instruments

Furniture, sports goods, toys and recycling

Electrical industry Wholesale trade Rubber and plastics Wood, paper, printing, publishing Machinery and equipment Food and tobacco Technical and F&D-related services Producer services, refuse disposal Metal production and processing Transport and postal services

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IMPRESS survey 2000: Determinants of environmental innovations in 5 European countries

171 141 125 131 203 62 92 122 92 77 109 159 47 84 66 61 44 100 103 24 42 402 185 181 390 419 87 195 132 84 62 142 155 41 101 308 120 101 314 374 67 139 390 142 111 264 381 77 182

100 200 300 400 500 Comply with environmental regulations Secure existing markets Increase market share Reduce costs Improve firm's image Respond to a competitor's innovation Achieve an accreditation Product Service Distribution System Process Organisational Method Recycling System Pollution control

N

Po

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Employment Impacts of Environmental Innovations

Figure : Employment effects of eco-innovations in 5 EU countries (Rennings/Zwick, 2002)

9 18 20 12 9 12 8 8 3 4 4 8 3 4 1 4 88 78 76 80 88 84 91 88

20 40 60 80 100 O v e r a l l P r

  • d

u c t S e r v i c e D i s t r i b u t i

  • n

S y s t e m P r

  • c

e s s O r g a n i s a t i

  • n

a l M e t h

  • d

R e c y c l i n g S y s t e m P

  • l

l u t i

  • n

c

  • n

t r

  • l

increased decreased unchanged

N=1575 N=274 N=185 N=132 N=568 N=201 N=502 N=498

%

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Diffusion of wind energy: depends crucially on regulation

10 20 30 40 50 60 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 YE AR Wind energy usage as a percentage of Wind potential Germany Denmark Spain NL UK

Quelle:OECD

The Process: Invention - Market Introduction - Diffusion

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Important for good practice: eco-innovation is not only about eco-industries

  • Concept should not be reduced to producers
  • f environmental-friendly goods and services

(Eco-industries, EGS)

  • Every firm is a potential eco-innovator
  • Even every customer
  • Not a best practice: Do not only report on

eco-industries!

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Structure

  • 1. Introduction and main message
  • 2. Economic and ecological concepts of eco-innovation policy
  • 3. Definition and Measurement: Best Practices of Monitoring and

Reporting

  • 4. Conclusions and research needs
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  • 6. Conclusions and research needs
  • 1. Eco-innovation has become segmented area of research and policy

making

  • 2. Not all win-win-options, cost-efficiency mainly criterion in neoclassical

concepts

  • 3. Best practices depend on your way of thinking about eco-innovation
  • 4. Best practices of eco-innovation policy are:
  • Observatory following diverse concepts
  • Innovation Policy: Transition management, Lead market initiative
  • Environmental Policy: Emissions Trading, Feed in-Tariffs, Eco-Labels,

Top Runner

  • 5. Research: A lot of conceptual, methodological and empirical research

has to be done

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Important to have in mind

  • Innovation policy and environmental policy are complementary,

can not by replaced by each other

  • Regarding comparison of environmental policy instrument:
  • You can stimulate innovation with several instruments (e.g.

subsidies, emissions trading)

  • What is more important for innovation is the policy style, i.e. that

environmental policy is ambitious and has long-term targets

  • Regulation advantage!
  • Efficient instruments such as emissions trading will fail if there are

no underlying ambitious targets

  • However, core-instrument of environmental policy such as

emissions trading or feed-in tariffs very important

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Thanks for your attention! Klaus Rennings rennings@zew.de