Lead Markets for Environmental Innovations


Book Description

Why does one country take the lead over others in the development and introduction of environmental innovations? This book analyzes lead markets for innovations such as fuel cells and photovoltaics, and offers insight into why this is. The authors use case studies to illustrate the policy framework that favors environmental innovation, and offer recommendations for research and development, environmental and industrial policies.







Lead Markets of Environmental Innovations


Book Description

Environmental regulations often want to stimulate the generation and adoption of ecoefficient innovations. An important argument in the public debate is also the creation of new markets for environmentally benign products, processes and services that other countries adopt and therefore generate export opportunities for the pioneering country. The research so far concentrated on the question on how national environmental regulation can induce innovations. The question addressed in this paper is whether environmental regulations can create lead markets, enabling local firms to export innovations that are induced by local market conditions and national regulations. We identify relevant factors for lead markets of environmental innovations. So far, the lead market concept in innovation economics has only been applied to innovations in general. We extend the lead market model to environmentally friendly innovations, considering their peculiarities, in particular the public good character of environmental benefits and the role of regulations. The approach is applied to two case studies: fuel-efficient passenger cars and wind energy. In both cases, one country adopted the innovation first. Later, other countries followed the same innovation design favoured by the lead market. The lead market became a large exporter in the wind generation and car industry respectively. We discuss the regulations employed and the reasons for the international success of the innovations induced by them. We find that strict regulation has created lead markets when it was supported by a global demand or regulatory trend.




Towards Environmental Innovation Systems


Book Description

Here is a dialog among worldwide experts across disciplines concerning theoretical frameworks and practical experiences to guide research and policy "towards environmental innovation systems". The contributors explore new directions of research at the border of two research traditions: systems of innovation and environmental innovations. The text examines the four main components of environmental innovation systems: conceptual foundations, empirical experiences, strategic approaches, and experiences with policy instruments.










Indicator Systems for Sustainable Innovation


Book Description

In the recent past, environmental innovations have led to a considerable reduction of many pollutants; however, further innovation is required to tackle remaining pollution sources. This work analyses the significance and the effects of framework conditions on innovation activities that contribute to the realisation of a sustainable development. The book links the experiences of different research projects with the aim to develop a system of indicators to evaluate sustainable effects of (environmental) innovations. A comprehensive framework for an indicator system is established that allows to include different environmental innovation fields such as process innovations in the steel production, substitution of dangerous chemicals, organisational innovations in the field of waste disposal or sustainable water management.




Lead Markets for Fuel Cells in Stationary Applications


Book Description

In the paper it is analysed which countries are likely to become the lead markets for fuel cells in stationary applications. The study is part of a larger research project "Policy Frameworks for the Development of International Markets for Innovations of a Sustainable Economy - from Pilot Markets to Lead Markets (LEAD)". In the course of this project more than 20 environmental technologies were examined regarding the regional differences of their market introduction and penetration. The project aims to explain why some countries are earlier in the introduction of environmental innovations and why the market penetration is more encompassing than in others. If the technologies of the pioneering countries diffuse to other countries without great modification, they can be analysed as lead markets for environmental innovations. Fuel cells for electricity generation in stationary are an emerging technology that is still in the stage of development and demonstration. There are several competing innovation designs on the market, and it is still open which technology is likely to be successful. The different technologies are described and compared among each other, as well as against conventional technologies for power generation. Three countries can be identified as frontrunners in the development of fuel cells, namely the United States, Japan and Germany. These countries are analysed regarding the R&D policies, the conditions for combined heat and power generation (CHP), the structure of energy prices, and regarding environmental policies that aim at internalising the environmental costs of energy production. The paper evaluates the different activities to stimulate the development and market introduction of fuel cells from a comparative perspective in order to assess respective lead market potential.




Lead Markets in Age-Based Innovations


Book Description

Nils Levsen focuses on the international diffusion of product and service innovations for elderly users. In particular, the existence and location of lead markets is being investigated. Lead markets are characterized by their early adoption of innovations and their influence on design choice in a subsequent international diffusion process. Finally, two boundary conditions to the applicability of lead market theory are being identified and described.




Water Business is Not an Island


Book Description

The main objective of this research is to develop a framework that integrates central variables of environmental innovations in an attempt to create internationally successful concepts. A special attention is being paid to water technologies, but the information will be treated in a way that enables results to cover other environmental sectors as well. The research supports the work of TESTNET (Towards European Sectorial Testing Networks for Environmentally sound Technologies) -project, which is one of the research and demonstration projects that the European Union has launched in the field of Environmental Technology Verification (ETV). The research will find answers for two main questions: 1) What are the central variables creating a basis for internationally successful environmental innovations? 2) Is it possible to develop a "fast and easy" -way to value the environmental and market potentiality of environmental innovations? As a method an approach can be described as a constructive research that produces constructions and tentative solutions for explicit problems. In this qualitative context of the research, theory will be treated both as a starting point and an objective of a research process. Referring to strong theoretical biases that the research adapts, fundamental idea is to strengthen the object theory gradually from different point of views. The following theoretical approaches are being utilized in achieving the research aims: 1) Innovation process 2) Special characteristics of environmental innovations 3) Environmental benefits in a context of new product development 4) Lead market thinking as market entrance procedure of environmental innovations. Answering the first research question, the Value Assessment Framework (VAF) will be presented. VAF is an attempt to integrate all central variables (e.g. environmental problems, market possibilities and restrictions, policies and regulations, company/sector reality) affecting the development of innovations in one frame and to reveal their interconnections (see page 81). As a partial contribution of VAF, the Value Assessment Tool (VAT) will be presented. VAT will be further tested, completed and used in customer cases of VTT - the mandatory organization of this research. The second research question will be answered by presenting the results of attempt to build a "fast and easy" -way to value the market potential and environmental benefits of innovations. This trial quantitative method was created as a part of TESTNET-project related reporting. The empirical data of the research constituted of expert interviews, filled forms of Innovation Fact Sheets, and participations of different seminars and meetings.