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Innovation for Sustainable Forest Management Innovation categories in forestry IP INNO-FOREST, 27 August 2007, Sopron Ewald Rametsteiner
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New Produc ts
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New Servic es
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New Organis ation
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Innovation Categories I Joseph Schumpeter Five types of innovation: (1) new products, (2) new methods of production, (3) new sources of supply, (4) the exploitation of new markets, (5) new ways to organize business
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Innovation Categories II Innovations Product Process GoodsServices Technological Organisational
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Innovation Categories III Three categories of novelty: new to whom? New to the firm (minimum requirement) New to the market/sector New to the world
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Innovation Categories III Two categories of novelty: how new? Radical: Creative destruction, new technology substituting the old Incremental: Development along technological paths Two categories of novelty: how? Continuous: interrelated innovations Discontinuous - Basis innovations: „... the most important … innovations, which may typically require a new textbook to describe them, may give rise to a change of technique in one or more branches of industry, or may themselves give rise to one or more branches of industry.” (Freeman)
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Macro-economic view Innovation, Growth and Employment Public policy view Public innovation policy and governance Micro-economic view Systems of innova- tion (NIS, SIS, RIS) Diffusion of innovations Innovative milieus Clusters / networks Entrepreneurs as risk-takers Business level view Innovation management & New product development Start-ups, business plans Innovation research
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Innovationsformen Firm level innovation
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Forest- Examples?
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New Products: Wood for Bioenergy Innovations in Forestry: Examples Organisational innovations: New marketing of products New products: Non-wood forest products: christmas trees New services: Recreation New services: education New Processes: New machineries
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5,892,144ha Land Area Protected /Restored 997 transactionsTransaction Volume US$375,908,799Market Volume January 1, 1987 to August 12, 2005 | View Source Data/Assumptions Market Snapshot 350,513 haLand Area Protected /Restored 149 transactionsTransaction Volume US$373,655,115Market Volume December 31, 1994 to April 30, 2005 | View Source Data/Assumptions 886,364 ha Land Area Protected/Restored 38 transactionsTransaction Volume US$92,344,370Market Volume January 11, 1995 to March 2, 2006 | View Source Data/Assumptions BUSINESS MODEL INNOVATION EMERGING REALITIES
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FORESTRY? Market-based societal organization meets
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Forestry & the future: which way? Forestry: -Collateral/savings bank function of forests to owners -„Urbanization“ of forest owners, hobby environmentalists -Raw material demand & productivity pressure -in Eastern Europe: privatization = fragmentation & lack of forest owner education QUESTIONS: -Efficient & secure raw material supply (Russia?) -Ownership vs. management? -Energy demand & plantations (short rotation & other) -Service demand & new business models? -Environmental services?
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Minor Changes to Existing Products New Features to Existing Products Transformational Products New Markets √√ Existing Markets √√√ Behavior Everyone does it; no sustainable competitive advantage Many try to do it; no sustainable competitive advantage Hardly anybody does it; sustainable competitive advantage Impact Cost reductionAddition of volumesGrowth and increased profitability STRATEGIC INNOVATION: BEYOND THE COMPANY
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Innovation for Sustainable Forest Management Innovation categories in forestry IP INNO-FOREST, 27 August 2007, Sopron Ewald Rametsteiner
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