1. Evolution of Environmentally Sustainable Innovation: The Case of the U.S. Carpet Industry & CARE Cathy A. Rusinko, Ph.D. Philadelphia University This research was sponsored by a grant from the U.S. National Textile Center

2. Contributions to the Literature Examines evolution of environmentally sustainable practices (ESP’s) at the community level Examines evolution of environmentally sustainable practices (ESP’s) at the community level Examines ESP’s as innovations Examines ESP’s as innovations Examines evolution of ESP’s in an under-researched industry Examines evolution of ESP’s in an under-researched industry Provides lessons for other industries, including global applications Provides lessons for other industries, including global applications

3. Overview Background: The U.S. carpet industry Background: The U.S. carpet industry The role of CARE & ESP’s The role of CARE & ESP’s ESP’s as innovations ESP’s as innovations The technological community perspective The technological community perspective Lessons learned and applications Lessons learned and applications

4. Background: The U.S. Carpet Industry Heavy resource user Heavy resource user Track & report air & water emissions Track & report air & water emissions Most producers within 100 miles of Atlanta, GA Most producers within 100 miles of Atlanta, GA $12+ billion industry; employs over 70,000 $12+ billion industry; employs over 70,000 Early environmental mover in textile industry Early environmental mover in textile industry Major industry groups: Carpet & Rug Institute (CRI) and CARE Major industry groups: Carpet & Rug Institute (CRI) and CARE Under-researched industry Under-researched industry

5. The Role of CARE & ESP’s Carpet America Recovery Effort (CARE) created in 2002 Carpet America Recovery Effort (CARE) created in 2002 Main Purpose: Encourage industry stewardship & keep used carpet out of landfills Main Purpose: Encourage industry stewardship & keep used carpet out of landfills Created by and for CRI, producers, suppliers, governments (EPA), NGO’s Created by and for CRI, producers, suppliers, governments (EPA), NGO’s

6. CARE Activities Include Targets for landfill diversion Targets for landfill diversion 2005: 10% diversion (of 4.5 B total lbs.)2005: 10% diversion (of 4.5 B total lbs.) 2008: 19% diversion goal2008: 19% diversion goal 2010: 23% diversion goal2010: 23% diversion goal Research on options for used carpet Research on options for used carpet Education & outreach Education & outreach Expanding CARE membership Expanding CARE membership

7. ESP’s as Innovations Innovation (Van den Ven) Innovation (Van den Ven) Administrative Innovations (AI’s)Administrative Innovations (AI’s) New procedures, policies, organization forms New procedures, policies, organization forms Technical Innovations (TI’s)Technical Innovations (TI’s) New technologies, products, services New technologies, products, services Therefore, ESP’s include both AI’s (reducing & reusing resources) and TI’s (sustainable backing & carpet).

8. The Technological Community Perspective (Van de Ven et. al.) Explains evolution of innovations and new technologies Explains evolution of innovations and new technologies Used in both manufacturing and services Used in both manufacturing and services Multi-level perspective - Organization, industry, & community/network of stakeholders w/respect to innovation/new technology Multi-level perspective - Organization, industry, & community/network of stakeholders w/respect to innovation/new technology Illustrates multiple, dynamic, and complex interactions between/among major stakeholders w/respect to innovation/new technology Illustrates multiple, dynamic, and complex interactions between/among major stakeholders w/respect to innovation/new technology

9. The Technological Community Perspective (Cont’d.) Includes three functions: Includes three functions: R&D Functions – Basic research, financing, education & trainingR&D Functions – Basic research, financing, education & training Proprietary Functions – Applied R&D, testing, manufacturing, marketingProprietary Functions – Applied R&D, testing, manufacturing, marketing Institutional Functions – Legitimation, regulation, technology standardsInstitutional Functions – Legitimation, regulation, technology standards All 3 interdependent functions influence emergence and success of innovation/new technology.

10. The Technological Community for ESP’s in the U.S. Carpet Industry

11. Tech.Community Functions & ESP’s in the U.S. Carpet Industry R&D Functions R&D Functions Basic Research – Mfgrs. & CAREBasic Research – Mfgrs. & CARE Financing – Mfgrs. & CAREFinancing – Mfgrs. & CARE Education & Training – Mfgrs., CRI, CAREEducation & Training – Mfgrs., CRI, CARE R&D functions enabled some manufacturers to see ESP’s and sustainable carpet as a potential source of competitive advantage.

12. Tech. Community Functions & ESP’s in the U.S. Carpet Industry (cont’d.) Proprietary Functions Proprietary Functions Applied R&D – Mfgers.Applied R&D – Mfgers. Testing – Mfgers., CARETesting – Mfgers., CARE Manufacturing – Mfgers.Manufacturing – Mfgers. Marketing – Mfgers., CRI, CAREMarketing – Mfgers., CRI, CARE Through proprietary functions, some manufacturers are gaining environmental and other competitive advantages (e.g, decreased cost; increased quality). (Rusinko, forthcoming). Other community members (e.g., used carpet dealers) are also seeing economic opportunities.

13. Tech. Community Functions & ESP’s in the U.S. Carpet Industry (cont’d.) Institutional Functions Institutional Functions Legitimation – Mfgers., CRI, CARELegitimation – Mfgers., CRI, CARE Regulation – No regs. for ESP’s nowRegulation – No regs. for ESP’s now Technology Standards – Mfgers., CARETechnology Standards – Mfgers., CARE All three functions are interdependent and “co-produce” one another—e.g., R&D functions co-produce proprietary & institutional functions.

14. Tech. Communities Have Gaps Gaps are under-developed areas or breakdowns in the tech. community—e.g., in research, mfg., mktg., legitimation Gaps are under-developed areas or breakdowns in the tech. community—e.g., in research, mfg., mktg., legitimation Gaps can cause breakdowns in other tech. community functions—e.g., research gaps can cause mfg. & legitimation gaps Gaps can cause breakdowns in other tech. community functions—e.g., research gaps can cause mfg. & legitimation gaps Gaps can undermine innovations and new technologies Gaps can undermine innovations and new technologies

15. Gaps in Tech. Community for ESP’s in U.S. Carpet Industry Gaps in R&D Functions Gaps in R&D Functions Shortage of research on ESP’sShortage of research on ESP’s Especially on alternate uses for old carpet Especially on alternate uses for old carpet Shortage of education and outreachShortage of education and outreach Especially to prospective customers Especially to prospective customers Gaps in R&D functions can co-produce gaps in proprietary and institutional functions.

16. Gaps in Tech. Community for ESP’s in Carpet Industry (cont’d.) Gaps in proprietary functions Gaps in proprietary functions Many diverse ESP’s (production practices and products) defined as “sustainable”Many diverse ESP’s (production practices and products) defined as “sustainable” Leads to confused/frustrated customers Leads to confused/frustrated customers

17. Gaps in Tech. Community for ESP’s in Carpet Industry (cont’d.) Gaps in institutional functions Gaps in institutional functions Lack of effective standards for sustainable carpetLack of effective standards for sustainable carpet Gaps in institutional functions can co- produce gaps in R&D and proprietary functions.

18. How to Prevent Gaps in the Tech. Community? At community level: Coordinate parallel development of all 3 functions—R&D, proprietary, & institutional Coordinate parallel development of all 3 functions—R&D, proprietary, & institutional Address & coordinate standards/regulatory environment ASAP Address & coordinate standards/regulatory environment ASAP Collaboration among stakeholdersCollaboration among stakeholders Oversee R&D Oversee R&D Especially education & outreach on ESP’sEspecially education & outreach on ESP’s Address tech. community on a global level Address tech. community on a global level

19. How to Prevent Gaps in the Tech. Community? At organization level: Address R&D functions Address R&D functions Especially education & outreach on ESP’sEspecially education & outreach on ESP’s Address proprietary functions Address proprietary functions Ownership/protection issuesOwnership/protection issues Sustainable mfg. & mktg. issuesSustainable mfg. & mktg. issues Address institutionalization functions Address institutionalization functions Participate in standards/regulatory discussionsParticipate in standards/regulatory discussions Participate in tech. community on a global level Participate in tech. community on a global level

20. Lessons Learned ESP’s can be viewed as innovations or new technologies, and evolve as such ESP’s can be viewed as innovations or new technologies, and evolve as such ESP’s are developed and disseminated by a technological community of diverse stakeholders, and so, are best examined in terms of the technological community ESP’s are developed and disseminated by a technological community of diverse stakeholders, and so, are best examined in terms of the technological community The three parts or functions of the technological community—R&D, proprietary, and institutional—co-produce one another The three parts or functions of the technological community—R&D, proprietary, and institutional—co-produce one another

21. Lessons Learned (cont’d.) ESP’s are most effectively developed and disseminated through collaboration by all members of the technological community ESP’s are most effectively developed and disseminated through collaboration by all members of the technological community ESP’s can be a source of competitive advantage to community members ESP’s can be a source of competitive advantage to community members Gaps in the development of the technological community can undermine development and dissemination of ESP’s. Gaps in the development of the technological community can undermine development and dissemination of ESP’s. To prevent or minimize gaps, the community must act collaboratively To prevent or minimize gaps, the community must act collaboratively

22. Future Research Potential Hypotheses: Potential Hypotheses: H1: ESP’s will have a higher probability of success in technological communities (and organizations) that address all three functions—R&D, proprietary, and institutional—simultaneously.H1: ESP’s will have a higher probability of success in technological communities (and organizations) that address all three functions—R&D, proprietary, and institutional—simultaneously. H2: ESP’s will have a higher probability of success in technological communities (and organizations) that address ESP’s at a global level.H2: ESP’s will have a higher probability of success in technological communities (and organizations) that address ESP’s at a global level.