Cleaning the diesel engine emissions - Facilitating technology push through cluster development strategies in the Danish automotive particulate filter industry Thomas Budde Christensen Roskilde University, Denmark

Background The Lisbon process: Economy, Environment and Social cohesion The Lisbon process: Economy, Environment and Social cohesion Air quality in urban areas. Enhanced focus on negative health effects related to particulate emissions from diesel vehicles Air quality in urban areas. Enhanced focus on negative health effects related to particulate emissions from diesel vehicles The European Commission has launched a draft directive for euro 5 standards for heavy-duty diesel vehicles to be enforced in 2008 with a cut in maximum emission limit on particulate emission from 0,0050 g/km (euro 4) to 0,002 g/km (euro 5). The European Commission has launched a draft directive for euro 5 standards for heavy-duty diesel vehicles to be enforced in 2008 with a cut in maximum emission limit on particulate emission from 0,0050 g/km (euro 4) to 0,002 g/km (euro 5). The NOx emission limits will also reduced or a euro 6 will be proposed in the near future.The NOx emission limits will also reduced or a euro 6 will be proposed in the near future. EU legislation provides market potential for emission control manufacturers! EU legislation provides market potential for emission control manufacturers!

Research question How can and Danish innovation strategy for emission control manufacturers be designed in order to How can and Danish innovation strategy for emission control manufacturers be designed in order to reduce negative health effects from particulate emission from diesel vehicles andreduce negative health effects from particulate emission from diesel vehicles and improve innovation and competitiveness of Danish emission control manufacturers to the mutual benefit of employment and economic growthimprove innovation and competitiveness of Danish emission control manufacturers to the mutual benefit of employment and economic growth

Methodology Case studies of four Danish diesel particulate filter manufacturers: Case studies of four Danish diesel particulate filter manufacturers: Case studies based on explorative interviews and visits at production plants and focussed on: Case studies based on explorative interviews and visits at production plants and focussed on: 1.Important innovation issues for the companies, 2.supply chain dynamics and 3.local business environment (cluster relations) Theory: Michael Porter, Peter Wells, Klaus Rennings Theory: Michael Porter, Peter Wells, Klaus Rennings Conclusion: Innovation issues and action plan Conclusion: Innovation issues and action plan

CompanyProductsTurnoverEmployees A Diesel particulate filters 100 (2005) B Diesel particulate filters 4.4 million euro (2005) 33 (2005) C integrated emission control systems 34 million euro (2004) 173 (2004) D Developer of diesel particulate filter systems 0.5 million euro (04/05) 2

Environmental Innovation Product: Eco design. Emphasis on green technologies Economic structure: Clusters and globalisation Outsourcing, mergers and acquisitions Process: Mass production, lean production, modular production and platforms Source: Wells 2004

Forcing environmental innovation Standard OHS Technology push Eco- innovation market pull Regulatory Push/pull Existing environmental law Product palette Product quality Material efficiency Energy efficiencyExpected regulation Market share Competition New markets Costumer demand Image Labour costs Source: Rennings 2000

Findings from case studies: innovation issues Economic structure: Marked requirements: Meeting euro 5+6 and future requirements in the European market and stricter requirements on the US market. Supplying niche markets such as non-road vehicles. Marked requirements: Meeting euro 5+6 and future requirements in the European market and stricter requirements on the US market. Supplying niche markets such as non-road vehicles. Automotive sector requirements: Development of integrated emission control systems (integrating silencers, catalytic converters and diesel filters). Danish suppliers to become system integrators (tier 1) or niche producers. Automotive sector requirements: Development of integrated emission control systems (integrating silencers, catalytic converters and diesel filters). Danish suppliers to become system integrators (tier 1) or niche producers. Product development: Silicon carbide diesel particulate filter: Negative trade off with CO2? Effects of biofuels? Improved regeneration solutions for particulate filters Silicon carbide diesel particulate filter: Negative trade off with CO2? Effects of biofuels? Improved regeneration solutions for particulate filters Selective Catalytic Reduction: Development of SCR technology including additives and applications. Infrastructure development for SCR technology additive including additive dispensers at the vehicle refuelling facilities. Maintenance and control system. Selective Catalytic Reduction: Development of SCR technology including additives and applications. Infrastructure development for SCR technology additive including additive dispensers at the vehicle refuelling facilities. Maintenance and control system. Enhanced collaboration with research institutions Enhanced collaboration with research institutions Demonstration projects: particulate filters and SCR technology. Demonstration projects: particulate filters and SCR technology.Process: Strategic initiatives focused on cost reduction of emission control equipment. Large scale production, lean production initiatives including, automotive quality certification (TS 16949) at emission control system suppliers Strategic initiatives focused on cost reduction of emission control equipment. Large scale production, lean production initiatives including, automotive quality certification (TS 16949) at emission control system suppliers

Conclusion: Action plan Level of governanceTechnology pull initiativeTechnology push initiative EU  Euro 5 and 6  6 th framework programme Danish government  Green taxes (2006: no registration fee on particulate filter, limited effect on lorries and heavy weight vehicles due to low registration fee)  Cluster strategy, network on lean and quality certifications, branch organisation, marketing cooperation  National research strategy on emission technology (universities and public-private partnerships)  Subsidise installation of particulate filters on vehicles in use. Local/regional initiative  Green public procurement (renovation vehicles, busses etc)  Cluster development  Demonstration projects (environmental zones etc.)

Thank you Thomas B. Christensen Roskilde University, Denmark