Department of Environment, Technology and Social Studies, Roskilde University, Denmark Green Innovation Integrating environmental and technology policies in Denmark Jesper Holm (O.E.Hansen & B.Söndergaard) Sic Country Programme Conference Brussels, 28 February - 1 March 2002

Department of Environment, Technology and Social Studies, Roskilde University, Denmark The ENVINNO-project Towards an integration of environmental and ecology-oriented Technology Policy. Stimulus and Response in Environment Related Innovation Network (ENVINNO). [ ]. Jesper Holm, Bent Søndergård Ole Erik Hansen Department of Environment, Technology and Social Studies EU-project (Targeted Socio-Economic Research program): Partners from Austria (co-ordinator), Spain, UK, The Netherlands and Germany

Department of Environment, Technology and Social Studies, Roskilde University, Denmark The aims of the ENVINNO project The interplay of environmental policies ((T)EP) and environmental oriented technology policies (ETP) : innovation processes in industries National studies of environment and technology policies at a national level Analyses of innovations in selected sectors of industries focussing on the relation between innovation processes in firms and the sector specific institutional framing of the innovations

Department of Environment, Technology and Social Studies, Roskilde University, Denmark Danish cases of environmental innovations Textile (process) Membrane filter to treat waste water (failed innovation) Reduction of VOC and lead in paints Electronics (process) Lead free technology Construction (product) Insulation bats made of plant fibres Food (product) Organic bread

Department of Environment, Technology and Social Studies, Roskilde University, Denmark Cumulative expansions in environmental regulatory focus on industry: strategy in relation to measures of planning and control

Department of Environment, Technology and Social Studies, Roskilde University, Denmark Empirical findings of general importance 1. Ambiguity of EP and ETP communication and institutionalisation. 2. Communication and institutionalisation vary a lot. The importance of shared discursive horizon. The co-existence of various incitements and rules actually do stimulate the entrepreneur into innovative processes. 3. The different have stimulated an open interpretation of scale and scope of what is to be innovated. 4. The state driven environmental innovation is of outmost importance when there are a deeply institutionalised technological path controlled by few dinosaurs.

Department of Environment, Technology and Social Studies, Roskilde University, Denmark

Ecological modernisation as a societal discourse : - win-win perspective as well in Ministry of the Environment as in the Ministry of Business - Ministry of Business sees EM as an argument in a strategy for international competitiveness - Ministry of Environment has focused on environmental capacity building - therefore the two Ministries focuses on different constellations of actors and different institutions - institution building has to be seen as a learning process

Department of Environment, Technology and Social Studies, Roskilde University, Denmark Dominant trajectories of technologies are common and supported by sector specific capacity building, standards etc. Therefore: - incremental innovations are more easily adopted and diffused (no surprise) - radical innovations are preconditioned by an interaction of a range of simultaneous processes for example commitment from dominant firm, sector specific capacity building, standardised markets, networks of social actors etc.

Department of Environment, Technology and Social Studies, Roskilde University, Denmark The market: - is important - is a necessary but not sufficient condition - is socially constructed Therefore, radical innovations are conditioned by: - an institutional learning process - markets and capacity building - the interplay of different factors and actors

Department of Environment, Technology and Social Studies, Roskilde University, Denmark Policy implications The necessity of a political setting of environmental goals For example Industrial transformation (factor four and ten …) Capacity building and the support of green markets The development of distributed (environmental) capabilities in sectors No privileged actor or instruments As a precondition for establishing the ability to seek new solutions as a consequence of new opportunities Environment and business policies have to be loosely coupled An independent reference to the environment as a driver (selection system) En independent developer of capacity (variants)

Department of Environment, Technology and Social Studies, Roskilde University, Denmark New directions in policy formulation? EP should establish clear environmental quality standards, improvements planned should have time horizons attached and transition rules specified (Environment Plans) Environmental standards need to be checked for consistency (interdependency of standards along product chains and ecological systems dynamics) EP should promote green markets to support generally very effective goods market stimuli for environment oriented innovation in companies. Such strategies include a green public procurement stategy ETP has to be designed in accordance with the declared present and future aims of EP

Department of Environment, Technology and Social Studies, Roskilde University, Denmark ETP should define focal areas of technological innovation, allow enough time and allocate funds over the predetermined time horizons, Environmental policy networks including all relevant actors should be enabled to participate in the environmental fortsight process ETP should establish institutional arrangements that permit active involvement of EP and ETP policy agents in the detection and promotion of environment oriented innovation pioneers ETP should encourage the establishment and maintenance of environment oriented innovation networks (for knowledge management, project partner search) Grants for innovation projects should be allocated on the basis of demonstrating knowledge of the product chains ETP designers should be aware of the fact that EP standards and concomitant ETP programs usually imply the creation and/or modification of new product markets for the technology providers.