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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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Presentation on theme: "Innovation for Sustainable Forest Management Innovation categories in forestry IP INNO-FOREST, 27 August 2007, Sopron Ewald Rametsteiner."— Presentation transcript:

1 Innovation for Sustainable Forest Management Innovation categories in forestry IP INNO-FOREST, 27 August 2007, Sopron Ewald Rametsteiner

2 New Produc ts

3 New Servic es

4 New Organis ation

5 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

6 Innovation Categories II Innovations Product Process GoodsServices Technological Organisational

7 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

8 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)

9 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

10 Innovationsformen Firm level innovation

11 Forest- Examples?

12 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

13 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

14 FORESTRY? Market-based societal organization meets

15 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?

16 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

17 Innovation for Sustainable Forest Management Innovation categories in forestry IP INNO-FOREST, 27 August 2007, Sopron Ewald Rametsteiner


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