Issues

Open Research

of developments in eco-inovanon,

before); Section 6 discusses

ECONOMIA POLITICA / a. XXVII, n. 3, dicembre 2010

The author would like to thanks the two anonymous referees for their comments.

Received October 2009, Approved April 2010.

construcnon. One of the first appearances of

397

Eco-Inovation is a recent concept of which the anytcal basis is under the concept of eco-inovation

2. Definition and typology of eco-innovations

nve systems of producton rather than alternanve technologies or products); and Secton 8 presents the mai conclusions.

this; Secton 7 looks at system inovation for the environment (about alterna-

nationa strengths in envionmental technology and the policy diension in

studies (somethg which has not been done

about eco-inovation actvities, bringi together the fidigs from various

set of propositions to be tested and further examied; Section 5 offers data

ment of eco-inovanon (pointig out litations and the need for extra indicators); Secúon 4 discusses determiants of eco-inovanon, leadig to a

The structure of the arde is as follows: Section 2 presents a de£nnon and typology of eco-inovanon; Section 3 deals with the issue of measure-

pul mechasms relevant for dierent tyes of eco-inovation does not exit.

doin in terms of eco-inovation, for what reasons and the varous push and

alternative systems of producton and consumptin. To date such an overvew arcle on what eco-Inovation is, how it may be measured, what companes are

chae, product change, resource management and waste misanon, and

such as the ch scope of eco-inovanon: from end-of-pipe to process

inovanon, and seeks to give an overvew

TI arúcle looks at defnona issues and issues of measurement of eco-

1. I ntraduction

by René Kemp

Issues

Eco-innovation: Definition, Measurement and .

considerably broader than

subjecnve improved customer sansfacúon based on personal taste and aesthenc judgement, and/or denved from followi fashions, and/or brougt about largely bymarkenn (p. 9).

duct inovanon as defed in tl manual excludes changes in products which provide largely

makenn method, or a new organanonal method in business pracnce. A techological pro-

mercisanon of a new or sigcantly improved product (good or serce), or process, a new

3 Accordi to the Oslo Manual (OECD, 2005), inovanon is the implementanon/com-

plipÆcodnve_ WikL.Maipage.

Repons from the ECO-DRI can be found at http://ww.eco-inovanon.eu/wiindex.

found at litt://ww.ment.unu.eduII/ and obtaied from the project leader René Kemp.

2 Results of the MEI project, includig a descnpnon of discussions at workshops, can be

make to sustaiable development and a compennve econom)l~ (OECD, 2009, p. 5).

1 ((The term ecoínnovatíon cals attennon to the posinve comnbunon that industry can

(Techopolis, 2008, p. 2). In ths defirtion, the implementanon of somethig developed elsewhere apparently does not count as inovation. The criterion

with a lie-cycle mial use of natural resources (matenals includi energy and surface area) per unt output, and a mial rdease of toxic substances))

competitivdy priced goods, processes, systems, servces, and procedures designed to satisfy human needs and.provide a better qualty of lie for everyone

on eco-Inovanon who define eco-inovation as ((the creation of novel and

pany developin or adopti i2. In ths sense it diers from the definon of the SYSTEMATIC panel

tion does not have to be new to the world; it only has to be new to the com-

trol techologies. The MEI definon follows the convennon in inovation measurement specied in the Oslo Manual (OECD, 2005) that the innova-

the definon of ECO-DRIVE, which excludes cost-increasing pollunon con-

The defnon proposed by MEI researchers is

and the environmental performance)). The defition of MEI is ((the production, assimation or exploitation of a product, producton process, service or management or business method that is novd to the organation (developing or adopti it) and which results, throughout its lie cycle, in a reduction of environmental nsk, pollution and other negative impacts of resources use (includig energy use) compared to relevant alternatives))2.

change in economic actvines that improves both the economic performance

(MEI) and Eco-Dnve. The eco-inovanon defition of the Eco-Drive is ((a

The absence of a common deftion led the European Commission to fud two projects on measurig eco-Inovanon: Measuring Eco-Innovation

term sustaiable manufactrig (OECD, 2009).

suggestion of a double wi, which is why it holds great appeal to business and governmentl. The OECD is using it as a central concept, alongside the

the concept diers from environmental technology: eco-inovation has the

it appeared on the front cover but cunously enough not in the book itsel. In a subsequent arúcle, Peter James defes eco-Inovanon as ((new products and processes which provide customer and business value but signicantly decrease envionmental impacts)) (James, 1997). In providig customer value

in the literature is in the. book by Claude FussIer - Peter James (1996) where

0%

40%

60%

80%

D Technology modiers ~ Technology adopters

II Strategic inovators D Intermttent inovators

20%

45%

43%

~

48%

50%

50%

100%

9%

12%

13%

29%

9%

4%

inovanve actvities, With a share of 18% the share of strategic inovators is slightly above the ED average of 15 % for inovative firms. The results show

creative inovative activities, the other hal inovates through diusion-based

firms may be compared to that of inovative firms in vanous sectors, Such a. companson using data from CIS-3 has been undertaken by Technopolis in the Europe Innova project. General results are given in Figre 1. We can see that àbout hal of al eco-Inovative firms inovate through

in Techopolis (2008) and Horbach (2008). The profie of eco-innovati

impact or health and safety aspects)) (EENV). This defition has been used

ned from the Communty Innovation Survey, even when no question is asked if the company eco-inovates, Eco-inovators may be defied as those which had responded a high degree of impact of inovation on either ((reduced matenals and energy per produced unt)) (EMAT) or ((Úproved environmental

Accordig to ths broad defition, many companes wi be eco-inovators - just as many companes wi be inovators by doing somethg novel. Inormation about eco-inovators across various ED countries can be obtai-

gansanonal or a combinanon thereof (Ardel- Kemp, 2009, p, 2).

nefit is an auxary benefit or a delberate goal, whether it technological, or-

improvement of what exists or entirely new, whether the environmental be-

is the most useful. Furter categorisanons are whether the inovanon is an

ronmental benefit compared to relevant alternatives, irrespectve of the ai,

To me the defirnon from MEI, which includes al inovations with envi-

pears unduly restnctive as it lits eco-inovation to the best in class.

of ((!al use of resource)) and ((!al release of toxic substances)) ap-

SOUTce: Presentation by Viola Peter at ECG-DRI workshop.

FIG. 1. Inovation modes (% of inovating firms, EU13 based on data from CIS4).

Al industries

Automotive

Machieiy

Chemicals

ITC

loops and to avoid environ-

400

is unortate. Ony new and improved environmental goods and serv-

The inclusion of environmental technologies in the list of eco-inovation

special ai. It also includes green system inovation,

for the environment and environmentaly beneficial product and servce innovations includi inovations for which the envionmental benefit is not a

organsationa, inangible, or systemic. It includes organzationa inovations

make th. disticton in a clear way. Eco-inovations may be technological,

novation; it is important therefore to make a distiction between (eco)inovation as an act and (eco)innovation as an outcome. The MEI report faied to

adopnon of an established environmental technology counts as an act of in-

should be considered as eco-inovations, For an adopter point of view, the

Stnctly speakg, an environmental technology should not be equated with eco-inovation: only inovations in and of environmental technology

Source: Kemp - Pean (2008).

systems: biological agricuture and a renewables-based energy sytem are examples.

- Alterntive sytems of producton and consumption tht are more environmentay beni than exiti

D. Gre syst inovations:

- Servces that ar less pollution an resource intensive (car shari is an example).

envionmental consulti, testi and engeeti, other testi and anytca services;

_ Envionmental servces: solid and haardous waste mangenent, water and waste water magement,

c. Prouc and servce inovation offeri envionmenta benefts: - New or environmentay.iproved products (goods) includig eco-houses and buidis; - Gren fici products (such as eco-lease or cliate mortgages);

menta dage across the value chai (from crade to grave).

_ Cha manement: cooperation between companes so as to close material

waste. Exples are EM and iso 14001;

vi measureent, report and responsibilties for dea with issues of material use, energy, water and

_ Envionmental magement and audiri systei: forn systems of envionmental management invol-

- Pollution prevention schemes;

B. Orgtion inovation for the envionment:

- Noise and vibration control.

- Gren energy technologies; - Water supply;

- EnvioIlental monitori and intruentation;

- Waste maement equipment;

efcit tha relevant alternatives;

- Oeni techologies that treat pollution reeased into the environment. _ Qeaner process techologies: new manufcturi processes tht are less polluri and/or more resource

- Pollution control technologies includi waste water treatment technologies:

A. Ennmta teolog:

Box 1. ME classification of eco.znnovatzon

eco-inovator, The MEI project also produced a classiication of eco-inovation:

fact, a non-inovati company in the eco-industry would not qualty as an

Eco-inovators are present in al sectors and not thus in the eco-industry, In

that the profie of eco-inovators is acty very close to the ED average.

401

change over rie, _ In order to be picked up as an eco-patent, the environmental gai of

cial value, The latter should be excluded when using patents as a measure for inovation. _ The propensity to patent is known to dier between sectors, and may

are commercialy valuable, the majonty of patents have litde or no commer-

cialy poor for measuring technology difusion, the adopnon of an inovation by a population. _ The value distribution of patents is highly skewed, only a few patents

analyzig eco-innovanon, A sumary of the weaknesses and strengths is given in Table 1, One important conclusion is that the most used indicator for eco-inovation, which is patents, is a poor indicator for several reasons: _ Patents measure inventions rather than inovations. Patents are espe-

single method or indicator is ideal. One should apply dierent methods for

Arundel - Kemp (2009) drawig on discussions in the MEI project. The general conclusion is that although some methods are better than others, no

A discussion of the pros and cons of dierent measures is offered in

types of scientiic publicanons, etc.; . Direct output measures: the number of inovanons, descriptions of individual innovations, data on sales of new products, etc;; . Indirect impact measures derived from aggregate data: changes in resource effciency and productvity using decomposition analysis.

. Intermediate output measures: the number of patents; numbers and

such as design expenditures and software and marketig costs);

personnel, and inovanon expenditures (includig investment in intangibles

Eco-inovation can be analysed using the followig four categories: . Input measures: Research. and development (R&D) expenditures, R&D

3, Measuring eco-innovations: data and indicators

tional spendig stemm from economic gais related to eco-inovation) the global environmental impact of an inovanon is very dicult to assess.

Whether someth is an eco-inovation depends on the overal assessment of environmental efects and risks. Many criteri may be used to evaluate the environmental impact of an inovation: greenhouse gases emisions, air pollution, energy use, water pollunon, noise, waste generanon and soil contamation, Given the number of envionmental critena, and possible rebound efects (the envionmental impact of induced increases in use and impacts of addi-

international combusnon piston engies) (Johntone - Hascic, 2008a, p. 7).

well be included in the very same classifcation (an example is spark-igntion

servces as measures for eco-inovanonis that a conventional alternative may

vation. Another reason for not using trade data for environmental goods and

objects), Ths goes agaist the use of trade data as a measure for eco-ino-

ces should be viewed as eco-inovations (when viewi eco-inovations as

TAB. 1. Summary of methods for measuring eco-innovation

Mode of measurement Data sources

Strengths

Weaknesses

Generi data sources

Input meaures

and technological innovations

other inovation expenditures (e.g.

Tend to capture only formal R&D activiti

R&D expenditures, R&D personnel, Relatively easy to capture related data

design expenditures, softare and

marketin costs) Intermediate output measurs Number of patents, numbers and types of scientifc publications

Explicitly provide an indication of inventive

Measure inventions rather than inovations Difcult to capture organisational and proct

Can be disaggregted by technology groups

Biased towards end-of-pipe technologies

output

Combine coverag and deta of various innovations No commonly agred and applied cateory f

technologies

environmenta inovations The commercial values of patents vary substa tial y

Diret output measur

Indiret impact meaures

The relative value of inovations hard to ide

Can provide information about tyes of inno-

Process and organisational innovations are d ficult to be counted

Relative ease to compile data

of new products from innovations

Timeliess of data

tions of individual innovations, sales

Measure actual innovations

Number of inovations, descrip-

Changes in reource effciency and productivity

Need to identif adequate information sourCt

Difcult to cover envinmenta impact 0\

Can provide the li between product value

tif

vations, i.e. incrementa or radical

and envionmenta impact the entire value chain Can be compiled at multiple levels: product, No simple causal relation between eco-inm company, sector, region and nation tions and eeo-effciency Can depict various dimensions of environmenta impact

TAB. 1. (segue)

Mode of measurement

Weaesses

Strengts

Data sources

Specialised surveys

Large-scale surveys

Smal-scale sureys

Generaly can include only a few questions EU Community Innovation Surveys, High response rates offcial questonnaire surveys peifor- Can trace trends in inovation actties relevance to eeo-inovation PACE surveys are not haronised amo through tie med regularly, PACE surveys cO).1tries; they do not dierentiate capital t penditures for eeo-innovation from those j line extension One-off questionnaire surveys, in- Can focus on eeo-innovation in far greater Low response rates Ony a few international surveys exist depth tervews Possibility to ask about many aspects of eco-

inovation Panel surveys

Gather information from the same

firms over time

Can provide information about size, levels, Costly to conduct directon and sources of inovation actvities Can identify trends and changes in inovative behaviour over time

Source: OECD (2009ab).

are maiy given for techncal invennons.

404

found to have ((a sigcant positive inuence on performance and inovatioID)

et al., 2007, p. 22), The presence of an environmental management system is

waste generation but not waste-water efuent and air pollution (Johnstone

study fids that anticipated cost savis play a sigcant role in encouragig improved environmental performance with respect to natural resource use and

stone whch systematicaly compared the drivers and facitanng factors for end-of-pipe abatement techologies and chanes in production processes. The

study Envionmental Policy and Firm-Level Management led by Nick John-

systematic research has been done in terms of compari the determnants for dierent tyes of eco-inovation. Probably the best attempt is the OECD

Monvations and facitatig factors for eco-inovation are various, Little

4. Determinants of eco-innovation

or products (Ardel - Kemp, 2009),

company as a whole. It does not give inormanon about specic technologies

A litanon remai that the CIS only provides general inormanon for the

mulation of quesnons. The module is voluntary and wi not cover al Member States. Information wi prove to be of great value for learnig about the nature and magntude of eco-inovanon activities in European companes,

duce important inormanon about the nature ofeco-innovanon including output measures and the determiants. MEI researchers contributed to the for-

novanon research. Innovation may also be measured indirectly from changes in resource efficiency and producnvity (Kemp - Pearson, 2008). A posinve development is that the next Communty Innovation Survey (CIS, 2008) has a special module on eco-innovation, which in 2010 wi pro-

absence of product databases with environmental information, Environmental repornn requirements may help to create relevant inormation, aiding in-

tput rather than innovation inputs (such as R&D expenditures) or an intermediary output measure (such as patent grants), Little use has been made of documentar and digital sources, priarily because of a lack of funding and

gital sources and surveys. The advantage is that they measure innovation ou-

Water supply

Another conclusion of MEI is that more efforts should be devoted towards direct measurement of inovanon output usig documentary and di-

as environmentay responsible Regultions, green demand, competitive pressures Genera purpose technologies (GPT) pushed by science, niche applications, visions, ...

for achevig green outcomes and the desire to be seen

sion tradig (ED ETS), ... Reguations (diecùy or indirectly), managerial demad

Environmental regutions, subsidies, taxes, carbon ems-

grammes

Water supply programmes of water board, research pro-

and Auditig Scheme) Noise regutions, reSearch programmes

Environmental regulations and EM (Eco-Management

Soil remedation programes Resource prices, waste management requirements, Extended producer responsibilty, ... Cost mination, environmental policy, ...

Environmental regulation, subsidies and environmental technology research programes, ...

Puled/pushed by

literature, taxes and emissions

405

sen (2005) and Mazzann - Zoboli (200a) showed how in presence of the

promonng radical inovation, In general the effects of instruents depend on how they are used (Kemp, 1997; Frondel et at., 2007). How they are used may be more important than what intrument is used, Studies by Nil - Ties-

1985) and Taylor et al. (2005) than evidence of market based instruments

provement inovations it is. unely to be true for radica inovation, There is more evidence of regulation promotig radical inovation (Ashford et aI.,

tradig systems are superior in promotig inovanon than reguation (an example is Mian - Price 1989). Whst ths may be true for low-cost im-

icy instruments. Accordig to the theoretical

sion (Del Rio,

2009). There is a long literature on the inovation effects of environmental pol-

Zoboli (2006b), the fidigs of which are broadly in lie with Table 2. When invesnganng push and pul factors, usualy no distiction is made between of eco-inovanon, and stages of invention, inovanon, difudierent types

novation have been econometricaly studied by Horbach (2008), Mazzanti -

They are best viewed as propositions to be tested. Determants of eco-in-

the most relevant factors for each type of eco-inovation is given in Table 2,

Eco-inovation is puled and pushed by many factors. An attempt to list

(2008) .

are in lie with the literature sureys of Del Rio (2009) and Kemp - Pontoglio

tion processes rather than end~of -pipe abatemenD) (ibid., p, 23), Such fidis

and market-based instruents tend to encourage the use of change in produc-

(ibid., p. 23) and (Æexible policy instruents such as performance standards

D. Green system innovations (industria ecology, smart grids such as Vehicle-to-Grid (V2G))

C. Product changes

ronment

B. Organiational inovations for the envi-

Green energy technologies

Noise and vibration control

be found in De Vries - Withagen (2005) and Ohra et al. (2009).

technologies

tents with no commercial value. Suggesnons for doing a patent analysis can

Cleaner process

Cleaning-up technologies Waste management systems

Pollution control technologies

nologies

A. New anr improved environmental tech-

Type of eco-innovation

Environmental monitoring and instrumentation

screen the patent descriptions for environmental aspects and eliate pa-

When using patents as a measure for eco-inovation, one should carefuy

sured by patents because patents

- Organsational inovanons and markerig innovanons cannot be mea-

ted techology.

ths effect wi not appear in the clais and in the description of the paten-

me consiaerea inovanon must be expl1cit ana descnbed in the patent, lì the environmental impact is a non-intennonal side efect of the innovation,

fis to inovate they must be willing,

to6

~ave the motivation/opportunity, and the capability or capacity to innovate.

4 Ashford (2005) has suggested that in order for

It was found that pollution control technologies are often combined with the use of other measures. It is unclear whether these other measures came

partcipate in the survey.

manufactri and servce sectors employig more than 50 people wig to

environmental point of view. The study was based on eco-inovation fis in

novanons cae out as the most beneficial environmental inovation from an

the 1998-200 period, in the 1,594 eco-inovatig establishments of the five countres, the most widely applied and important environmental inovation is a process change, followed by recyclig and pollution control. Process in-

erlands). IMPRESS asked compates whether they had adopted one of six environmental inovations in the past three years, The study' found that in

countries (Germany, Italy, Switzerland, the United Kigdom, The Neth-

ied eco-inovation actvities under 1,594 establishments in five European

nigs and Zwick, 2003). Using a broad defition of eco-inovation, it stud-

are provided by the IMPRESS project for the European Conussion (Ren-

ing ((an important impact;) on EMAT and on EENV, fidig an important impact for 14% of the compates (16% in industr and 11 % for servces) (Techopolis, 2008, p. 16). Deeper inights into the nature of eco-inovation

retaied in CIS4, which only inquired into whether inovation was hav-

Unfortunately, the questions about EENV and EMAS impacts was not

in materi use and energy use. These percentages are for the EU15.

the inovators surveyed in the Communty Innovation Surey of 2002-2004 reported a positive impact on environment, health and safety and reductons

measure of environmental benefit - appears to be widespread. Over 40% of

(EENV) - CIS3.

o Eenv-no ~ Eenv-mis

NL AT PT PI SE

EÆ Emt-hih . Emat-med Ed Emat-low 0 Emat-no

æmæ~~FRITWNL~

Eurostat data.

SE

Source: Tecnopoli (2008, p. 15) based on Eurostat data.

407

~ Emat-mIss

PI

~, PT

."~.

3. Efec of inovation activity on reduced matena and energy per unit output (EMT) CIS3.

0%

10%

20%

30%

40%

50%

60%

70%

80%

'is'

Source: Techopoli (2008, p. 16) based on

90%

FIG.

fÆ Eenv-hih II Eenv-med EJ Eenv-low

BE DK DE GR ES FR IT LV

;4ß'-

2. Efect of inovation actvity on reduced environmenta impacts or improved heath and safety

100%

FIG.

10%

Eco-inovation - understood as a process change, orgatsationa change, product change or entirely new process, product, system or organisationa 0%

20%

30%

40%

50%

60%

70%

80%

90%

100%

5. Patterns in eco-innovation and the reasons for observed differences

inovation behaviour. The case. study literature also shows the importance of networks for environmental inovation (Hyvättien - Hidén, 2004; Luijten, 2001; Taylor et al., 2005; Mazzanti - Zoboli, 2006b).

2005; OECD, 2007), Frondel - Horbach - Renngs (2007) found a positive correlation between internal forces and market forces and envionmentaly

also show that eco-inovation depends on company capabilties to inovate in envionment friendly ways, the company's attitude towards risk and the attention given to environmental issues4 (Hyvätten - Hidén, 2004; del Rio,

reguator preference for quick results, envionmentaly superior solutions were locked-out in favour for incremental solutions. The case study literatue

serces

Prodcts or

ßI Most benefici

method

Process Organational

II Mentioned

system

Distributiob

o

10.000

408

5 Peronal cornunicauon of eco-Inovauon survey expert J ens Horbach,

not the same as inovation and the above table is about eco-technology, not eco-Inovation, Innovation activities probably have shited from EOP techo-

falen. It would be wort to fid out. It bears notig agai that investment is

Accordig to the PACE data, end-of-pipe technologies account for more th 50% of the pollunon abatement control investments by business. The PACE data also show that PAC investments have falen in many countries. It is unclear whether total expenditues on eco-Inovation (broadly defed) have

centage of 20%, as a ~~reasonablö) esriate5.

hypthencal question. In Germany apparendy many responders use a per-

extra costs of process chage to reduce environmental impact. It is a highly

majonty of the costs, even in the 1990s as we can see for selected countries. Pollunon abatement and control expenditures consist of two tyes of costs: investment in end-of-pipe and the extra costs of process-in-change, The latter category is a dificut category for responders as they have to measure the

abatement and control expenditure, end-of-pipe technologies account for the

lieved to be old response, but accordi to the PACE data about pollution

Pollunon control technologies which are end-of-pipe are. generaly be-

---------

- Tota PAC investments

1998. 2001 2003 2004

-Spai

1997 1998 2001 2002

------------- ----

~

Hungary

1997 1998 1999 2000 2001

Austri ê 400

Polad

1997

2002

....-_..-

19941997 19992000200120022003

----..

United Kidom

1996 1999 2001 2002 2003 200

1996

-----------.. -.._---..

~

----- EOPinestients

~ 10~

aN 200

g, ~ 300

~.i' 500 "¥ ,; 400

ti ~ 600

1 700

t¡ 800

~ 2.~

:; N 4.000

~ 8 6.000

.rá a 8.00

.. ê 10.000

-: 14.000 ~ ~ 12.00

;2 0

E!

8 50

g 150 :: " 100

t¡ 200

~ 250

8300

'á 350

nelum

6 The seven countnes include Canada, France, Germany, Hunar, Japan, Norway

409

and

of 3,100 establishments in seven industnalzed countries6, which found that

logy to cleaner process technology and eco-friendly products but we lack systematic evidence on that. A more systematic analysis of cleaner producton changes is the earlier mentioned OECD study Environmental Policy and Firm-Level Management

Source: Based on dara from OECD (2007).

5. Total pollution abatement control investments and amount of end-of-pipe investment therei.

;2 0

r.

.. 100

~ 300 ~ 200

t¡ 400

8 600 ~ 500

were addinonal.

FIG.

~

a

"

g 20.000 ::

t¡ 30.000

N

ê 800

Pollution control

50.000

8 40.000

a¡:

ê 6Ó.000 .¡:

;2 0

a 100 E!

:: "

g 200

t¡

N 300

aa

500

,; 400

.¡:ê

'á 700

Source: IMRESS survey under 1594 companes in five Europea countries.

system

Reccl

4. The adoption of dierent tyes of environment inovation in 1998-2000.

0

10

20

30

40

N=1570

to substitute for the use of pollution control techologies or whether they

FIG.

?f

50

60

70

40 20

o

40

20

o

II Hunaiy

~ Norway

r: United States

~ Japan D Canada

Source: Frondel et oJ. (2004; 2007).

ven OECO countries (%).

6. Types of environmenta techologies implemented in 3,100 establihments in manufacturig in se-

o France

II Germany

410

peees) is the sector classifcation of Eurostat.

7 NACE (Nomenclatue generale des Activites economiques dans les Communautes euro-

The sample consisted of facities with more than 50 employees in al manufacturi sectors,

the United States, The project is caled Envionmenta Policy and Fir-level Management.

private sector R&D spendig in pollunon abatement techologies has falen

ducton, green products and especialy green energy innovanon. In the US

mental R&D only exist for a few countries (Canada, US and Japan, as far as I know). The attennon has shited from pollunon control to cleaner pro-

techologies are divided in core ET and secondary ET. Data on environ-

We lack systematicaly collected data on eco-inovation. The most importat sources of Inormanon are patent data, sales and exports data of environmental goods and servces, and capital investments and operatig expenditures on pollution abatement and control. Attempts are being made to use NACE for measuri environmental technologies? Environmental

tial for increasing manufacturing efficiency and reducing costs of operations (Frondel et ai., 2004; 2007).

implementation of cleaner producton technologies is dnven by the poten-

logies are tyicaly introduced to cope with reguatory compliance, whie the

of end-of-pipe technologies. The study also learned that end-of-pipe techno-

in al countnes the share of cleaner production technologies exceeded that

FIG.

60

60

Cleaer production

80

80

End of pipe

100

100

2020 (BUM, 2007),

411

consultants puttg it at 1,000 bilon in 2007 and predictg a market of 2,200 bilon euro by

the envionmental goods and servces market which has been varously estiated, with Berger

8 Furer research is needed to establish ths, We lack good and relable statistics about

Plan, technology platforms, fudi of eco-inovation research through dedi-

transition platforms. This approach is discussed in the secton 7. The EU has taken several intiatives: Environmental Technologies Action

In the Netherlands the selecton of these technologies is done by seven

technology development component, with selected technologies bein based on nanonal strengts and views on critical technologies for the future.

proach for creatig a low-carbon society. Such approaches have a very strong

is the Dutch transition approach for sustaiable energy and the Japanese ap-

siness creation, employment and security in the case of energy. An example

busiess, several countries have made ((eco-inovatioID) (in the meanig of envionmental goods and servces) part of their industnal inovanon policies. These policies are driven by multiple goals of environmental protecton, bu-

Observg the li between national environmental policies and green

nis, 2003), findig that there is indeed evidence of a lead-market effect.

competitive advantages has been studied by Beise (2001) and (Beise - Ren-

lack detaied studies

of the development of those industries and international competition in those markets, The issue of lead markets creatig sustaied

alost certaiy owes a great deal to national environmental policies but we

industr, Even today the US is a net exporter. In the Netherlands, the wastewater control policies introduced in the 1970s gave a boost to waste-water engeerig companes, leadig to a strong position in the 1980s (which somehow got lost in the past 10 years), Germany waste companes benefitted from the large waste market followig the introducton of the DSD programme and the feed-in law for electricity gave a boost to German wid turbine manufacturing and solar pv. The strong position of US firms in air pollution control, German companies in waste management and wid power and French companes in water

cies, The US air emission lits introduced in the 70s helped to create a new

techology exports and Japanese firms in solar energy, The creation of competitive strengts owes a great deal to domestic poli-

in energy-effciency and new materials8, Europe is leadig in wid turbine

firms in waste-water technologies and waste management and Japanese firms

observe that US firms are strong in air pollution technologies, European

IT we look at the world market for environmental good and servces, we

6, National strengths in environmental technology

2009).

enormously: from 1.5 bilon dollars in IlJU to DU tnon dollars in ~Ü')iL pnces) (Grover,

and savig of hydrogen

Note: CCS is a technology tht store CO2 generated in the production process instead of releasing it

pul, buid and augment techologi-

avaiabilty of venture capital, creation of skis, knowledge transfer,

412

and so on); and the front of market pull through the use of pollution taxes,

structue,

9 Oter examples of system inovauon ar: biomass-based chemstry, muluple sustaiable

hides) which have to be nurtured through policies addressing barriers to the growt and development of these speciic technology inovation systems; the front of the national system of innovation (about the broad knowledge Inra-

10 From htt://ww.smargndnews.com/aranpublish! arcle--06.htm,

flexible, modular manufacred constrcuon (Ashford et at., 2001).

413

land-use (the integrauon of the agnculmral fucuon with other fucuons in rual areas) and

set of 35 tranition paths are bein supported (includig biomass for elect-

2009). It makes use of~~bottom-up)) developments and long-term thig. A

and selection (Rotman et at., 2000, 2001; Kemp et al" 2007, Nil - Kemp,

which led policy makers to engage in a transition approach for system Inovanons. Transition manaement relies on ~~darwsnsno) processes of variation

~~transitioID) innanve in the area of energy. It is be1evedthat the use of fossi fuels is not sustaiable envionmentaly and ulnmately also not economicaly,

In the Netherlands system inovanon is the stated ai of government-led

tices and a new type of normalty (Shove, 2003).

of markets or through business sustaibilty strategies. The creanon of new system innovation is inexorably linked with insnmtiona change, gudi images and joined up efforts (Kemp et at., 2007), as wel as dierent social prac-

Such new systems are unlely to emerge through the normal operation

cant air quaty beneft in cities thanks to electric mobilty.

facitate the traninon to a low carbon energy system and produce sign-

to reduce the need for extra load power to meet peak demand and helping renewables such as wid power which sufer from irreguar supply. It could

would store electricity generated during off-peak or from renewables, helping

terest of several uúlties and several start-up companes10, Electric vehicles

Kempton at the University of Delaware, the V2G concept has caught the in-

countres have to work on several fronts: the front of specific technology innovation systems (such as biorefineries, smart grids and hydrogen fuel cell ve-

cal capabilties and remove obstacles to new technologies. To be successful,

to which they are able to create market

The success of the EU and national intiatives wi depend on the extent

has been formulated,

mer base in the form of an already existi market whose development and success depend more than for other markets on the creation of favourable framework conditions though public policy measures. The eco-inovation areas selected are sustaible constructon, recyclig, bio-based products and energies. For each market, a plan of acton for the next 3-5 years renewable

Europe has a strong technological and industrial base in these and a custo-

four considerations: that demand for products from these areas is high, that

EU is usig a lead market approach. The choice of these areas was based on

ness and inovanon programme). For four eco-inovation product areas the

dicated programe for eco-inovation which is

par of the EU's competitive-

cated programmes and general programes (there is a 200 mion euro de-

Source: Le (2008),

(V2G) uses vehicles as electrical storage, buyig and sellg power from the grid. Proposed by Amory Lovis in 1995 and furter developed by Wilam

safe and designed for re-use (McDonough - Braungart, 2002). Vehicle-to-grid

which are expected to bri signicant benefits. Cradle-to-cradle is a product design priciple which says that every par of the product should be

10 improvement in energy effciency), and industrial ecology (Weaver et at., 1999)9. Cradle-to-cradle and vehicle-to-grid systems are two other examples,

Hi performance batteries; manufacturi, transportation,

improvement), decentralsed producton of electricity usingrenewables and

proteis (10-30 factor improvement), precision agriculture (up to factor 50

grame in the 1990s. These include: novel protei foods based on non-meat

Environmental benefits may also be adneved through altogether dierent systems of proviion. Examples of system Inovanons. offerig environmental benefts are beig identied in the Dutch sustaible technologies pro-

7. System innovation for the environment

microturbines, underground transport of commodities in pipe lies (factor

FIG. 7. Critica technologies for achievi a low-carbon society accordi to the Japanese Fukuda viion.

into the attosphere.

environmentaL reguauons, grt:t:ll p.lULuii:uii:UL aUu. uiL ..u.~~.t~~~~ -..------tradig system for carbon.

Energy-savig houses and buidigs, bi-eciency lits, fied-tye fuel cel

Inovative technologies for materis, manufcturi, and processin, inovative steel-maki process, etc.

Fuel cel vehicles, plug-in hybrid electric vehicles, biofuel, etc,

hiy-efcient electric power tranmision, etc,

Highy-efficient fie power based on natura gas and coal, carbon capture & storage (CCS), solar power generation, nuclear power generation,

Core technologies

Core techologies to Achieve Low.,arbon Society (Fukda Vision)

1990 2006

2030

Emision with transitionportolio

Source: Presentation Hugo Brouwer in London (2005),

8. Time path for COieisions in the Netherlands.

o

Emision without

trasitionportolio

2050

Min. (40 MlON)

Expected (230 MTON)

Ma. (90 MlON)

Mi. (160 Ml)

Expected (230 MT)

Ma, (310 MT)

414

11 A descripnon and (cnncal) discussion of Dutch transinon policies can be found in

anda 45 mion euro fundig scheme for transition experients (UKR)l1. Al-

inovators (for help and advice), the creaúon of seven transition platforms

partmental directorate for (horizontal) policy coordition, a special desk for

transition to occur and shape the features of it. So far, the approach is viewed as very successfu in snmulann business to engage themselves in radical inovation projects, somethig which was not happenig before. Immaterial inovations are the creation of and interde-

strongy suggests that transiúons in sociotechncal systems defy control and efective steerig. Policy can do little more than increase the chance for a

nagement are thus rather high, even when transition research (Geels, 2005)

tions and the creation of new business. Expectations about transition ma-

Much is expected from the transition approach, in terms of CO2 reduc-

Through the transition approach the Dutch governent hopes to acheve an extra 180Mton CO2 reducnons (Figure 8),

· The creation of new business.

· The energy system gettig progressively more sustaable;

· -50% CO2 in 2050 in a growi economy; · An increase in the rate of energy savig to 1.5-2% a year;

plan was formulated in 2005 contaig the followig goals:

Based on suggestions from the transiúon platforms a transition acton

of strategic experients and programes for system inovation.

partental coordiaúon. It also takes on a responsibilty for the undertakg

city, clean fossil, oúcro cogeneraúon but also radical thgs such as energyproducing greenhouses for growing crops and flowers). The governent acts as a process manger, deal with issues of collectve orientation and interde-

FIG.

u

Ó'"

¡:

.~ 100

.~

¡:

l

::

'õf 200

'¡ ¡:

,J"

¡:

§ 300

Howlett (2009) and Kemp (2009).

415

Loorbach (2007), Kemp et at" (2007), Kemp - Loorbach (2008), Kern - Smith (2008), Kern -

grants). Innovaúon can also be measured indirectly from changes in resource

of inovation output using docuentary and digital sources, The advantage is that they measure inovation output rather than inovation inputs (such as R&D expenditures) or an intermediary output measure (such as patent

In partcuar, more effort should be devoted towards direct measurement

analyzig eco-inovaúon - to see the ((Whole elephanD) instead of just a part.

be sufficient. In general, one should therefore apply dierent methods for

For measurg eco-inovation, no single method or indicator is liely to

patterns of eco-inovation actvity are liely to be dierent as wel,

waste mization, reuse and recycl, new materials (for example nanotechnology-based) and eco-desig. The drvers are related but dierent and the

towards more resource effciency, energy efciency, greenhouse gas reducton,

((disbenefits)). Attention should be broadened to include inovaúon oriented

generative mechasms behid these, the barriers to these and the benefits and

and systems of producton and consumption, with research inquiri into the

and abatement actvities. It is proposed tht future eco-inovation research and data collecton focuses less on products from the envionmental goods and servces sector and focuses more on product change, changes in chais

grid electricity systems, or customised mobilty. Past research and measurement acnvity has focused on pollution control

business and governent. Examples are cradle-to-cradle products, vehicle-to-

resti development is the growig attenúon for green system inovation in

R&D expenditures in pollution abatement have falen sigrúicantly. An inte-

di more on eco-inovation or less than 10 years. In the US private sector

countries and sectors are eco-inovatig, It is unclear whether they are spen-

ties also increased in importance, but we lack systematic data in what ways

processes and products that are more environment-friendly. Recycli actvi-

of-pipe eco-technologies to preventive solutions such as cleaner producnon

economic concerns. In Western countries there has been a shi from end-

it. Eco-inovations are found to be driven by environmental (reguation) and

vers for it, pattenis in eco-technology and the changig (policy) context for

I have examed the notion of eco-inovation, how it may be measured, dri-

In this paper about defitional issues, measurement and research needs

8. Conclusions

of sustaiabilty risks. For biofuels sustaiabilty crteria are formulated.

improvement options through a range of policies. The approach is midful

ternanve SYSTem POSSIDllUt:S iux iiU1l1w(tL~U ill .. 11LAlLJ1L way aivii&"~..,, "J"''''''

416

Brusel, Januar 2002, ww.blueprint-network.net. mimeo.

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Butter M, (2002), A Thee Layer Policy Approach for System Inovations, Paper

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Bundesmieriun fu Umwelt, Naturchutz und Rektorsicherheit (2007), Green-

Framework for Innovation and Environmental Economics, ZEW Discussion Paper no. 03-01, Manneí, mimeo.

Beie M, - Rennigs K. (2003), Lead Markets of Envionmental Inovations: A

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Barolomeo M, - Kemp R - Regs K. - Zwick T, (2003), Employment Impacts of Cleaner Production: Theory, Methodology and Results, in Rennigs K. - Zwick T. (OOs.), Employment Impacts of Cleaner Production, ZEW Economic Studies, vol. 21, Heidelberg/New York, Physica Verlag. Beie M. (2001), Lead Markets: Country-specic Success Factors of the Global Dif-

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Paper no, 07-14, mimeD,

the Italian NAMEA over 1993-2006

In this paper, by furter elaboratig with respect to previous contribu-

to be augmented, somet for which the artcle offers recommendations,

solutions, and dicuses nationa dierences in eco-inovation use, lead market issues, and the growig atand nee tention to sytem inovation, A conclusion of the artcle is tht the statistica basis is sti poor

hints, and with Ce-

ECONOMIA POLITICA I a. XXII, n. 3, dicembre 2010

421

counting~ staff - for their ongoing effort in producing an important source of data as the Italian NAMEA. The usual disclaimer applies.

sare Costantino, Aldo Femia, Angelica Tudini, Giusy Vetrella - the LSTAT ((environmental ac-

Marin for useful support regarding dataset construction and many good

The authors thank two anonymous referees for comments, We are indebted with Giovanni

Received October2009, Approved April 2010.

tions (Mazzanti - Zuboli, 2009; Mari - Mazzanú, 2009; 2010) and using

presents data tht ilustrates the shi towards cleaner products and continuing importnce of end-of-pipe

tyology of eco-inovation developed in a project for the European Commission, examines indicators for

meaurement and offers suggestions for measurement. Push and pul mechansms for dierent tyes of eco-inovations are dicused, before turn to a discussion on patterns in eco-innovation. The artcle

existence of either a trade-off-or a complementarity between economic and efficiency are hard to fid on theoreúcal grounds only. Emenvironmental

intrisicaly related to technology and inovation, general conclusions on the

support to the green economy, green growt, and eco-inovaúon. By bein

arguent about the aleged costs of environmental policies to firms is con~ fronted by the ((Porter Hypothesis)) about competitive advantages from environmental leadership; the extensive debate on the cost of clate change pole icies rapidly turned, in front of the global crisis, into a widespread high-level

and ((ecologica tax reform)) proposals of the 1990s; the (~roductvity loss))

ployment)) debate of the 1970s evolved in the ((double dividend hypothesis))

eses in both economic research and policy makg: the ((environment vs em-

in standard micro

economic assumptions, has been increasigly chaenged by theoretical and empirical analyses that have generated quite opposite hypoth-

the environmental and industrial policy debate. Ths idea, which is rooted

portunty cost in terms of ((economic effcienc)l) has sti a signcant role in

The idea that gais in ((environmental efficienc)l) may have a (high) op-

1. Introduction

by Massimilano Mazzanti and Roberto Zoboli

Analyses on

Joint Economic and Environmental Efficiency, Empirical

pirical analysis, although not conclusive in itsel, may however be usef in providing evidence on the extent of, and the conditions for, a trade-off or a joint dynamics to take place in the real world.

The artcle looks into eco-innovation as a concept that supersedes the older concept of envionmenta techology. The analytcal basis of eco-inovation is under construction, there is no commonly agreed deftion. For most peple eco-innovation is another term for inovation for the environment, and inmotivated. The article offers a cludes environmenta-benefci inovations who are not environmentay

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