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