Hansen Et Al 2002

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SIX COUNTRIES PROGRAMME ON INNOVATIONSIX COUNTRIES PROGRAMME ON INNOVATION

Spring Conference 2002

A denition descries

INNOVATION POLICY AND SUSTAINABLE DEVELOPMENT:Can public innovation incentives a!e a "i#e$ence%

&' (eb$ua$) * + Ma$c,- &..&B$ussels

Danish Green Innovation

Integrating Environmental and Technologypolicies

Ole Erik Hansen ([email protected]), Jesper Holm( [email protected]), Bent Søndergrd( [email protected]).

Department of Technology, Environment and Social Studies,

www.teksam.ruc.dk , Roskilde University, P !"#, D$%###, Roskilde, Denmark.

Tel& '%( %" )% !# ##, *a+& '%( %" )% #

mailto:[email protected])



http://www.teksam.ruc.dk/






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Introduction"n ecological modernisation e##ort has characterised en$ironmental polic% in man% northernEuropean states since !eginning o# the &'ties. he targeting o# corporate !eha$iour in en$i*

ronmental polic% schemes has o#ten stimulated polic% co*ordination +ith !usiness* and tech*nolog% polic%, di##erentiated into $arious integrati$e, regulator% set*ups in a cumulati$e proc*ess. ithin the !usiness milieu, su!se-uent institutional trans#ormations #ollo+ing these at*tempts ha$e sought to promote eco*modernisation !% enhancing and sta!ilising en$ironmentalcommunication on the market, in !usiness chains etc.

his paper summarises the anish results #rom an international t+o*%ear stud% o# polic%stimuli and en$ironmental inno$ation/. he paper discusses selected anish e0periences +iththe eco*modernisation e##orts at three le$els1 polic%, sector and corporate le$els. "t the polic%le$el it is anal%sed ho+ the macro*polic% #rame+orks conditions* co*ordination and discursi$eintegration !et+een en$ironmental and !usiness2technolog% polic% in general and related toselected manu#acturing sectors. "t a sector le$el is anal%sed the institutional milieu #or industries * en$ironmental competencies, perceptions and communication +ithin 34 units,trade organisations, municipal administrations etc. 5astl%, at the corporate le$el is anal%sed theinteracti$e responses among selected industries em!edded in $arious net+orks * identi#icationo# the institutional de$elopment, !usiness responses and shi#ts in en$ironmental perceptionsand per#ormances.

.e0tile and electronics industr% has !een a priorit% concern o# en$ironmental polic%

programmes and local en$ironmental regulation schemes #or t+o decades in enmark. 5atel%,en$ironmental pro!lems related to outlet o# d%e*stu##, hea$% metals and to high consumption

o# +ater and energ% ha$e !een addressed +ithin pro*acti$e schemes o# cleaner technolog%,en$ironmental management and product orientated programmes. 6n addition, en$ironmentalupgrading o# te0tile and electronics industr%, supported !% 34 programs, has !een part o# arepositioning process due to glo!al competition7 a minor part o# the industr% has adoptedgreen strategies !ased on ecological design.

he !aker% and construction industries has not until recentl% !een a polic% concern o# en$ironmental programs and politics. Ecological modernisation ha$e instead !een #osteredthrough $arious e##orts o# articulating a de$elopment path !et+een green 89Os, entrepre*neurs, organic #armers, cit% ecological projects, and e$en la!our unions. he :inistr% o# ;ood,the :inistr% o# Business and the :inistr% o# En$ironment and Energ% ha$e responded !%enhancing $arious institutions in order to #rame sta!ile, trust+orth% and competiti$e markets#or green products and ser$ices. hus the ministries ha$e initiated $arious su!$ention schemes#or 34, eco*la!elling, en$ironmental codes o# conduct manuals etc. " minor !ut stillgro+ing part o# the industr% ha$e adopted green strategies * organic pastr% and !read,ecological !uilding materials and en$ironmental concerned construction.

he paper e0amines ho+ the general sector*integrated polic% and the targeted polic% programmes ha$e installed speci#ic institutional and discursi$e #ormations +ithin the men*tioned industries. 6n a d%namic perspecti$e +e look at ho+ s%stemic competencies and en$i*

/ he stud% Towards an -ntegration of Environmental and Ecologyoriented Technology Policy. Stimulus and Response in Environment Related -nnovation /etworks (E8</88O) +as #unded !% the arget Socio*Economic 3esearch =rogramme,E>. he project includes partners #rom "ustria, Spain, 9erman%, the 8etherlands and >?

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ronmental perceptions are reproduced and produced +ithin the industries, resulting in a selec*ti$e milieu that #a$ours speci#ic paths o# technolog% de$elopment. hese processes and en$i*

ronmental per#ormance are studied using a !ottom*up approach e0ploring the interpretati$eresponses to en$ironmental and technological polic% programmes among #irms and net+ork stakeholders.

The general policy framework for corporate environmentalinnovation – the inter linkage between environmental policy andtechnology policy

6# +e take a rough look at ho+ the inter linkage or crosso$er !et+een E= and = hasde$eloped +e ma% conclude the #ollo+ing stages1

/&A*C1 Donsensus oriented !uilding o# guiding en$ironmental standards in closeconsultation +ith anish industrial trades, !alancing en$ironmental re-uirements toa$aila!le puri#ication and dilution techni-ues. Su!$ention schemes +ere launched #or the industries ha$ing di##iculties in compl%ing +ith puri#ication demands. he period+as characterised !% no speci#ic technological innovation #ocus and no speci#ic E=#ocus in the emerging =. "n e0emption though +as a su!sid% scheme #rom /&/ #or in$estments in technologies #or the use o# rene+a!le energ%.

/&*&/1 Technology pushes !% strategic co*orientation o# = and E=. Here the#ocus is on the technological capacit% options #or increased anish su!contracts to

pu!lic and pri$ate puri#ication in#rastructure, caused !% increasing demands to

en$ironmental protection. Strategic en$ironmental modernisation !% stressing thecompetiti$e ad$antages that might emerge #rom a anish en$ironmental #rontrunning. 3esearch and e$elopment (34) = programs in en$ironmental orientedtopics. 34 E= programs in cleaner technolog% and rec%cling related to processesand +aste. " ne+ risk* and en$ironmental oriented concern in = +as launched +iththe /&F act on En$ironment and 9enetic Engineering, +hich !and all e0periments+ith geneticall% modi#ied organisms (9:O) unless the% +ere gi$en a dispensation.

/&&*'''1 "n institutionalisation o# technolog% orientation o# E= in acts and ordersoccurred. Strategic s%stems e0port !ecame a ne+ orientation #or the support o# de$eloping anish en$ironmental in#rastructure, institutionalised in $arious aid

programs under !oth ministries. 8e+ 34 programs +ere started in cleaner technolog% changes to+ards en$ironmental management (E:"S), technolog%di##usion and design support #or cleaner products. Enhanced green pu!lic

procurement and market pull policies +ere gi$en priorit%. ;inall% ne+ = and E=schemes #or creating ne+ green jo!s ha$e !een initiated in the end o# the period.here ha$e !een de$eloped a general discursi$e en$ironmental co*orientation o# =,

!ut onl% $er% #e+ speci#ic strategic initiati$es ha$e !een launched. Enhancedadministrati$e co*ordination since /&&.

hen +e discuss = and E= and the crosso$er !et+een the t+o, +e ma% distinguish !et+eendeli0erate e##orts to #oster certain technological inno$ations #or the !ene#it o# theen$ironment, #rom inno$ati$e technological side effects #rom the E= or =. e ha$e primaril%#ocused on the #irst categor%, !ut +e ha$e also gi$en some s%stematic descriptions o# the

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technological impacts o# the $arious regulator% strategies +ithin anish E=. e ha$e alsoanal%sed the strategies and institutions in a !roader conte0t o# general polic%, organisationalstructure and regulator% measures +ithin E= and =. Secondl%, it is pro!lematic to narro+ the

#ocus do+n to the t+o !e#ore mentioned ministries, as a signi#icant increase in inter*polic% or cross*sector polic% e##orts ha$e taken place since !eginning o# the /&'s. hese ha$e co$eredinter polic% e##orts !et+een = and polic% sectors o# housing, #ood, education, and ta0ation,and !et+een E= and polic% sectors o# energ%, transport, and agriculture. he general anal%siso# en$ironmental polic% integration ha$e not !een studied among these sectors !ut in our casestudies +e ha$e #ocussed on speci#ic programmes and strategies7 e.g. schemes and policies onorganic #arming, schemes on ecological construction.

6n the general E=*E= paper +e ha$e told t+o di##erent stories. On the one hand +e ha$e toldho+ schemes #or de$elopment and di##usion o# ne+ more en$ironmentall% #riendl%technologies !ecame a #actor in anish en$ironmental policies. On the other hand +e ha$e

told ho+ en$ironmentall% #riendl% technologies !ecame an element in anish technolog% policies. ;rom these t+o di##erent perspecti$es +e ha$e sho+n ho+ the same polic% papers, programmes and instruments +as interpreted as a part o# t+o di##erent polic% #rames.

he integration !et+een E= and E= has de$eloped in an institutional #rame+ork +ith the#ollo+ing characteristics1

I enmark has a relati$el% strong :inistr% o# the En$ironment and Energ%. he ministr% hasmanaged to esta!lish an eco modernistic discourse as a part o# the general polic% o# thego$ernment. Strategies and support schemes #or cleaner technologies ha$e !ecome a part o# the :inistr%s competence. he :inistr% has esta!lished and !een in$ol$ed in polic% net+orks

+ith !ranch organisations, pri$ate #irms and other actors in order to in#luence the technolog%and !usiness policies. ;urthermore, the ministr% has had a man% programmes #ocusing on thede$elopment and di##usion o# technolog%. here!% the ministr% has !een an important actor inthe de$elopment o# the technological in#rastructure.

I he :inistr% o# Business and 6ndustr% has also in recent %ears !ecome a strong ministr% and !usiness related research and technolog% polic% is a part o# the ministr% competence area.Business polic% and technolog% policies ha$e !een consensus oriented and !ranchorganisations and pri$ate #irms ha$e pla%ed an important role in the #ormulation o# ne+

policies.

I he technological in#rastructure (the 9S and the 6Ds) is an important result o# theconsensus*oriented !usiness and technolog% polic%. his in#rastructure is the responsi!ilit% o# "6 (under the jurisdiction o# :B6) and it com!ines consultati$e +ork and !usiness relatedtechnolog% research #inanced !% the 9o$ernment. " !ig part o# the mone% used #or E= andE= is canalised through the in#rastructure or are used to de$elop the !asic competencies inthe 9Ss.

I here is a $ertical di$ision o# la!our !et+een the state le$el, the count% le$el and themunicipals. Dounties and municipalities has a !ig part o# the responsi!ilit% #or theimplementation o# as +ell E= and =. here#ore, there can !e !ig regional $ariations accordingto the degree to +hich local authorities tries to make #or e0ample cleaner technologies an

important part o# the regulation. 5ike+ise, there are esta!lished regional 6D*centres in order to support the de$elopment, adaptation and di##usion o# ne+ technologies especiall% in S:Es.

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"lso !usiness polic% institutions are esta!lished on the local or regional le$el in order to attractenterprises or in order to strengthen net+orking in the local !usiness communit%.

hese institutional characteristics mean that there are di##erent arenas #or the interaction !et+een E= and E=. "t the go$ernmental le$el !oth the :inistr% o# the En$ironment andthe :inistr% o# Business and 6ndustr% has tried to integrate en$ironment and technolog% #romdi##erent perspecti$es. Both ministries ha$e emphasised that it is not a hostile relation. "t someoccasions #rom the end*eighties the ministries ha$e #ormulated a common strateg% and the%ha$e administered programmes #or the de$elopment o# en$ironmentall% #riendl% technologiesin colla!oration. But most o# the E= acti$ities ha$e !een administered !% the :inistr% #or theen$ironment, and the E= elements in = has !een administered !% the :B6.

On the other hand, there has !een an interaction in the 9S*s%stem and at the regional andlocal le$el. En$ironmentall% oriented programmes ha$e !een $er% important #or the 9Ss and

the 6Ds. here#ore, in the technological in#rastructure there ha$e !een a #ocus on theintegration o# E= and E= and this integration is especiall% seen in some o# the ne+ programmes or support schemes #or e0ample the centre contract scheme.

6t is important to notice that E= is a rather strong polic% area +hile E= must !e seen as a+eak area. 6n recent %ears, the de$elopment o# ne+ smart technologies and ne+ materials has

!een seen as the cornerstone in the de$elopment o# a more en$ironmentall% #riendl% andsustaina!le production. On the other, technolog% polic% is traditionall% a +eak area anden$ironmental concern is normall% not understood, as an important element o# =.echnologies capa!ilit% to enhance competiti$eness is the important part.

Environmental innovations in four sectors

he o!ject o# our case studies has !een interpreted to e0amine the trans#ormation o# theen$ironmental regulation and corresponding corporate re#lection in the anish !aker%, te0tile#inishing, electro plating and insulation industr%. he approach is #rom the perspecti$e o# anecological modernisation process in the anish industr% and in the anish en$ironmental

polic% scheme. he aim has !een to anal%se the content o# this trans#ormation, #ocusing onho+ ne+ institutional structures and en$ironmental perceptions ha$e de$eloped +ithin theindustr% and ho+ the% ha$e !een interpreted and in#luenced the en$ironmental acti$ities at themanu#acturing le$el. he anal%tic endea$our does ha$e a normati$e moti$e * the process iso!ser$ed and anal%sed +ith the aim to assess and de$elop a !etter understanding o# +hich

polic% options +e can ha$e in relation to the de$elopment o# en$ironmentall% more #riendl% production schemes

he inter#ace !et+een polic% programs and the enterprises in the industr% is at the centre o# the anal%sis. On the one hand the cases raises the -uestion, ho+ polic% programs arecommunicated to the enterprises and ho+ the% ma% succeed to install ecologicalmodernisation and inno$ati$e responses in the industr%. On the other hand the cases raises the-uestion, ho+ these stimuli (changed institutional #rame+ork and communicated perceptionso# en$ironment) ha$e !een re#lected and interpreted !% the enterprises +ithin their strategicscheme he !asic tenet o# the case studies is that the stud% o# the processes o# interaction,studied as institutional and enterprise practices, are $ital to de$elop the means o# pro#ound

en$ironmental trans#ormation o# the industrial production. o o!tain this, +e ha$e integratedt+o lines o# anal%sis7 an anal%sis o# the institutional de$elopment concerning the en$ironmental

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trans#ormation o# the industr% sectors, and an anal%sis o# the processes at the enterprisesre#lecting the changes in their milieu. "t a macro level a concept o# ecological modernisationhas dominated the en$ironmental and industrial polic% in enmark in the &'Kties. :ain

elements in this process ha$e !een a se-uence o# programs and polic% initiati$es taken !% theanish 8ational En$ironmental =rotection "genc% (E="). he case studies ha$e then#ocused on a meso level +ithin the institutional regulator% comple0 o# anish te0tile,insulation, !aker% and electro plating industr%, ho+ the polic% programs ha$e supportedspeci#ic institutional and discursi$e #ormations, and (in a d%namic perspecti$e) ho+ s%stemiccompetencies and en$ironmental perception ha$e !een produced. Here a pro#ound num!er o# $ar%ing constellations o# 34 institutions, trade associations, la!our unions, green 89Osetc. has !een e0amined in order to identi#% main dri$ers and their success in institutionalisingtheir pre#erences in a certain eco modernistic de$elopment. he aim has !een to speci#% theresulting selecti$e milieu that #a$ours speci#ic paths o# technolog% de$elopment anden$ironmental actions. "t a micro level the impacts o# this conditioning milieu is studied #rom

a !uttom*up perspecti$e1 E0ploring ho+ #irms in net+orks re#lect upon, interpret and per#ormtechnolog% in response to the en$ironmental polic% programmes.

Methodology

he case studies are !ased on a series o# documentar% studies (complemented +ith inter$ie+s)o# the de$elopment o# the C anish industries, construction*insulation, !akeires, te0tile andelectronics, +ith speci#ic emphasis on the en$ironmental regulation and trans#ormations andon in depth studies o# the practises o# #i$e enterprises anal%sed in their net+orks andinstitutional setting. 6n these case studies emphasis has !een gi$en to the interaction +ith theinstitutional #rame+ork and +ith their net+ork looking #or changes in ho+ en$ironment +as

communicated and percei$ed.

Dhanges in the enterprises technological inno$ations and en$ironmental practises +ere theimmediate #ocus o# the case studies. he !ottom*up studies o# #irms and their net+orkingallo+s us a) to get a more detailed understanding o#, ho+ en$ironmental demands arecommunicated, interpreted and turned into practices, !) to make $isi!le elements o# processeso# learning and re#lections +ithin the industr%. he meso le$el stud% o# the institutional set*upis made #rom inter$ie+s +ith ke% actors in the industr%, in the kno+ledge and regulator%net+ork !esides a num!er o# internal e$aluation studies o# the cleaner technolog% programmes+ithin E=", o# E= programmes and en$ironmental oriented programs in #arming andconstruction.. he de$elopment +ithin the anish industries are L in this +a% L seen as a

historical re#le0i$e process, +here changes in $isions and perceptions o# regulation and o# enterprises and actors +ithin the industr% are inter+o$en. +o parallel -uestions are raised1 hich en$ironmental paths are institutionalised hich institutional learning has !een accomplished

he a!ilit% o# E= and E= to create inno$ati$e responses +as the o!jecti$e o# the studies.

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Case study selections and findings

he point o# departure #or the selection o# case studies +as the main guidelines o# theE8<688O project1

/) here had to !e inputs #rom the polic% side, and there had to !e some #orm o# crosso$er !et+een E= and E=.

) 6n #our cases an en$ironmentall% inno$ati$e output (technological, net+ork) had to !e athand, +hereas one case had to !e a #ailure.

G) he #ocus +as on the end users, not on the in$entors o# ne+ process*technolog% #or purchasing.

"lthough it is not possi!le to make statistical generalisations #rom #i$e case studies, +edecided that in order to co$er di##erent aspects o# E=2E= crosso$er it +as important to ha$ea large degree o# $ariation in our cases on the input side, the output side and the mediation.

;urthermore, it +as important to select cases #rom !ranches o# industr% that are important parto# the production and consumption structure or ha$e a considera!le amount o# en$ironmentalimpact. he criterias and the e$aluation points are summarised in the scheme !elo+1

Generally Criteria's for selection Evaluation points

8ot representati$ein the statisticalsense9reatest possi!le$ariationhere is somekind o#

inno$ati$e,materialisedresult

EP1ETP inputs variation 1- =rograms- 3ules- iscursi$e campaigns- 6nstitutional con#iguration2ariations in actors of mediation- trade organisations

-34 institutions

- Donsumers, customers, competitors3ompanies variation1- small2!ig- t%pes o# net+orks in$ol$edTechnological output variations- radical2standard- process, product or market

Success or failure- en$ironmental, technological,

economic

ther impacts- net+ork constellation- strategic orientation

-en$ironmental rationalit% +ithin the product*chain

- competence and in#rastructure in net+ork

3hange in technology etc.- in technolog%, trajector%- in net+orks- in modes o# in$ention and consulting

he criteria resulted in #i$e case studies in #our !ranches o# industr% (construction, #ood,te0tile and electronics). e chose to make some kind o# direct comparison o# a #ailure

inno$ation and a success inno$ation in the te0tile industr%. he te0tile industr% is relati$el%important in enmark, there has !een se$eral integrated E=2E= programmes addressing theindustr%, and the industr%s en$ironmental impact is +ell kno+n, and there a national user*

producer net+ork linked to international production #acilities. Our aim +as to e0amine ho+the same regulator% and institutional #rame produced di##erent inno$ati$e outputs. 5ike+ise,the construction industr% has a national net+ork, $er% important en$ironmental impacts andthere ha$e !een di##erent kinds o# en$ironmental oriented technolog% programmes addressingthe industr%. ;urthermore, the industr% is characterised +ith an institutional #rame+ork makingshi#ts in technological paths $er% di##icult. "n important aspect o# the en$ironmentall% orientedde$elopment o# the industr% is the social mo$ement #or ecological housing. he #ood industr%is also characterised !% a national net+ork and the importance o# a social mo$ement #or

organic #ood. 6n this case, ho+e$er, the eco*la!elling scheme has #ramed the industr% andsupported the production o# organic #ood. he #orth industr%, electronics, is in man% aspects

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di##erent #rom the others. here has not !een speci#ic programmes targeting the industr%, andthe anish production is linked to an international production chain setting the standards #or as +ell product and production technologies. here#ore, this case is $er% important !ecause it

demonstrate some o# the linkages !et+een national policies #ocusing on the implementation o# ne+ technolog% paths in industries #ull% dependent o# their a!ilit% to compl% +ith internationalstandards.

he selection o# companies, the #ocal inno$ations, the rele$ant E=2E= policies, themediators, the net+ork and the impact anal%sed is summarised in the #ollo+ing ta!les1

Company Kvickly/Superbrugsen-retail chain, bakery

Textile Soedahl Design

Textile: Danish Colour Design

Change "ll products in !akeriesturned into organic,

Hea$% metal and to0icsu!stance #ree colouring

8e+ no*lo+ <OD containing paints

EP/ETP policies Eco*la!elling, 34su!$ention 34 programs in E=,rules, = competenceschemes

34 su!$ention programs,+orking health regulation,

Mediation =u!lic de!ates, 9:Odiscourses,

rade discussions, localen#orcement o# E=, green

89O (8O"H)

=ressure #rom unions, localen#orcement o# rules,

Netor!s Supplier net+orks, green 89Os

6, te0tile 34 units,regulator%,

6, !usiness, tradeorganisation, regulator%

Impacts Dhanged not onl% productso# A shops !ut the +holemarket

5o+ered emittants, ne+market pro#iles

8e+ net+orkconstructions

5o+er emission o# <ODs,impro$ed +orking conditions,ne+ technolog% path, costgains, ne+ standards

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Company Electroplating Construction: Dansk aturisolering

Change ;inishing1 Dlosed loop, ion*e0change En$ironmental monitoring (product

de$elopment)EP/ETP policies 34 programs in E=, rules, regionalam!ient +ater -ualit% plans,$oluntar% regulation

6nno$ator = programs, su!$ention o#34 8et+ork (Denter contracts)

Mediation 5ocal en#orcement, trade consultanc%, Do*operation, marked dri$en. =ressure#rom unions

Netor!s 34 #rom = policies, trade,consultancies

3esearch institutions, unions,

Impacts 3educed emissions o# hea$% metals#rom +aste +ater, reduced +aterconsumption

e$elopment o# en$ironmentaltechnologies

Donducting the case studies +e had a general research curiosit% on +hether the loose anishcoupling !et+een the E= and = policies ha$e had an% impacts on en$ironmental inno$ation,and +hat are the success#ul path+a%s #or polic% inputs to the !usiness sector e presumedthat the +a% policies ma% cause impacts on corporate !eha$iour are $ar%ing a lot, dependingon !oth the input side, the side o# the respondents and their #orm o# mediation. hereas othersma% #ocus on the t%pe o# #irms or polices as dependent $aria!les +e tended to #ocus on theinstitutional, discursi$e and regulator% d%namics in the relationships !et+een market and state.here#ore, +e #ocused on the #ollo+ing points in the #i$e case studies1

/. 4ow was the crossover 0etween EP1ETP communicated 6nstitutionall% (ser$ice, 34),discursi$el%, rules, rules en#orcement, #unds and aid schemes.

!. 5ithin the case& who were the main institutions, organisations and networks that used and interpreted the EP1ETP communication6

. 4ow was the rules and the EP1ETP communication interpreted 0y casecompanies and their regulatory, R7D, and 0usiness networks6

%. 4ow were these inputs influencing the technological innovations that were at stake withinthe companies6

(. Did the EP1ETP inputs have any innovative impacts on the constellation of actors withinthe firm8s networks6

". 5hat kind of innovations in relation to the am0itions of the EP1ETP policies, mediation forms and corporate conditions was the result of the innovation process.

6n our opinion this #ocusing o# the anal%ses has made it possi!le to come up +ith some resultso# general importance according the communication and the institutionalisation o# the E= andthe E=. "dditionall% the conse-uences #or the speci#ic con#iguration o# net+orks surroundingthe inno$ations, the radicalit% o# the inno$ations #rom a technological and en$ironmental pointo# $ie+, and the grade o# success and #ailure.

he #irst #inding o# general importance relates to the o#ten e0perience am!iguit% o# E= andE= communication and institutionalisation. he cases in mind here are #rom te0tile industr%+here the local authorities en#orces demands upon the #irms that #or+ards traditional end*o#*line technologies, on the e0pense o# cleaner technolog% options rec%cling +ater reducinghaMardous chemicals. he other case is the construction sector, +here mineral +ool is

#a$oured !% the pu!lic rules on construction, !% the 34 institutions and !% occupationalhealth regulation. But at the same time ne+ programs #or alternati$e insulation #rom other

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ministries makes a !rake trough. One ma% consider it as an ad$antage that se$eral technolog% paths are !eing stimulated, !ut on the other hand it ma% lea$e #irms con#used +hen the% tr% to !e inno$ati$e adjusting to pu!lic demands. he !est case in mind here is our electronics case

+here a percei$ed market ad$antage in con$erting to a non*led sil$er technolog% has +ithereda+a% #rom lack o# pu!lic en#orcement o# a phasing hea$% metal out strateg%. he same picture,though some+hat success#ul, ma% !e the case in our anish Dolour esign case, +here the+eak market pull in non*to0ic d%ing partl% is due to hesitating pu!lic regulation on eco*#riendl% clothing.

he second general conclusion is that communication and institutionalisation $ar% a lot."mong success#ul en$ironmental cases there is a constructi$e co*appearance !et+eencommunicated en$ironmental perceptions, institutional con#iguration, prohi!itions,su!$entions etc. But it is a case in point that this does not mean that there has to !e a pre*

planned co*ordination o# polic% inputs, a genuine E= and E= #usion. hat is o# importance is

that there is some kind o# shared discursi$e horiMon L e.g. an eco*modernistic communit% perception L the di$erse inputs relate to. =lus the #act that the co*e0istence o# the $ariousincitements and rules actuall% do stimulate the entrepreneur into inno$ati$e processes.

he third general conclusion is that the di##erent polic%*inputs in all cases ha$e stimulated anopen interpretation o# scale and scope o# +hat is to !e inno$ated. ;rom here it is theinstitutional em!eddedness o# the #ocal #irm in $alue chains, user*producer net+orks andrelations to 34 institutions that determines the +a% inputs are trans#ormed into inno$ati$e

processes. hus, it is $ital +hat the net+ork o# the #ocal #irm ma% o##er in inno$ati$e solutions.

;ourthl%, the state dri$en en$ironmental inno$ation !% 34 schemes, purchasing policies,

la!elling etc. is o# outmost importance #or the esta!lishment o# a ne+ technological path, +hena deepl% institutionalised technological path controlled !% #e+ Ndinosaurs is the case. hus,the enhancement o# ne+ insulation materials and methodologies depended upon !asic researchstimuli and polic% stimuli #or ne+ entrepreneurs.

Concluding remarks on policy and regulation

6n our perspecti$e the institutional learning process +ithin the anish industries ha$e sho+n agreen responsi$eness. his can !e seen as an interpla% !et+een a national ecologicalmodernisation strateg%, a construction o# polic% programmes and institutions directed to+ardsthe industr% and enterprises responding to the programmes and gi$en their o+n strategic

interpretation o# the programmes. his interaction esta!lish a d%namic learning process +iththe construction o# ne+ actors, the esta!lishing o# a ne+ technological selection en$ironment,and the !uilding o# ne+ competencies +ithin the enterprises and their net+ork. e ha$eidenti#ied t+o t%pes o# industrial responsi$eness1 the incremental learning o# integratingen$ironmental concern into !usiness strategis, and secondl% the construction o# ne+ ecologicalor green products as a respond to general eco*discourses and ecological mo$ements

Doncerning the first categor%, the incremental learners the main #indings o# the institutionallearning process are summarised in the ta!le ne0t page.ithin the en$ironmental regulation o# the te0tile industr% a +aste+ater track o# de$elopmenthas !een dominating, gi$ing #e+er impulses to other paths o# de$elopment such as more

radical su!stitution schemes and optimising material #lo+ (reducing the materials suspended in

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+aste +ater). hus it +as here +e #ound our #ailure case, +ere the technological trajector% o# a certain mem!rane technolog% #ilter +as pushed as the solution.

he targeted cleaner technolog% program +ithin the te0tile industr%, alternati$e insulation andElectro plating has produced kno+ledge resources concerning cleaner technologies.echnological options, that o##er su!stantial reduction in the consumption o# +ater, chemicals,hea$% metals and energ% and reduces the discharge o# suspended material in the +aste +ater,is documented and is accessi!le in the en$ironmental kno+ledge net+ork.

Permits"##$%

Cleaner Technology"##"%

EnvironmentalManagementsystems "##&%

Product oriented"##%

Construction ofactors

Dommand andcontrol orientedregulators, reacti$e

#irms

Dlosed corporatenet+ork o# actors(?no+ledge

institutions, proacti$e !ranch organisation, proacti$e #irms#ocusing on +in*+intechnologies)

=roacti$e #irms +ithenhanced capacit% tocontrol the process

operations

=roacti$e #irmsacti$el% tr%ing toconstruct ne+ markets

#or en$ironmentall%#riendl% products.Dorporate institution#ocusing on eco*la!elling, ne+stakeholders #rom #ore0ample retailindustries

Technology paths 3eduction o# o$erconsumption, reuse o# +ater, cleaningtechnologies

echnolog% push Lde$elopment o# +in*+in technologiescom!ining costreduction anden$ironmental

impro$ements

En$ironmentalmanagement s%stems,chain managementand documentation o#en$ironmental per#ormance

=roduct and li#e c%cleorientation

Competencies in!noledge netor!

?no+ledge o#+aste+ater andhaMardous chemicalsin en$ironmentalagencies

Donstruction o# ne+technologies inkno+ledgeinstitutions, capacit% !uilding in !usinessnet+ork

Suppl% chainmanagement in !usiness net+ork

Dhain and marketoriented, de$elopmento# instruments #oren$ironmentaldocumentation

Competencies infirm

ater reduction andreuse o# +ater

5ack o# o+nership tocleaner technologies,no #ocus oncompetence !uilding

Suppl% managements%stem

eco*la!elling, a!ilit%to communicate anddocumenten$ironmental per#ormance

(trategic

interpretation infirms

En$ironmental action

as cost

in*+in perspecti$e

#ocusing on costreduction, reacti$eresponse to pu!licdemands

Dompetiti$e

ad$antages related toen$ironmentaldocumentation andPgreen cotton concept

in*+in perspecti$e

#ocusing on ne+ !usiness opportunitiesren$ironmentall%#riendl% products

he implementation o# the cleaner technolog% program +ithin the industries has !een !ased ona strateg% program !rought #or+ard !% the stakeholders in the industr% and the relatednet+ork o# kno+ledge institutions. his has #ocussed and strengthened the program, !ut it hasalso produced a closure in terms o# actors in$ol$ed and in terms o# the en$ironmental

perception in the program and industr%. he program has !een techni-ue oriented and#ocussed on +aste+ater, spills and single su!stances. Ho+e$er, the program has alsoconditioned a learning process. 8e+ schemes on eco*management, eco*design and product

de$elopment are no+ !eing taken up +ithin the industries.

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he en$ironmental regulation and the resources produced in the cleaner technolog% programshighl% in#luenced the +a% the enterprises ha$e dealt +ith their en$ironmental pro!lems. 6t hasin#luenced ho+ the% de#ined their pro!lem, and it has in#luenced the solutions that +ere

considered, it has in#luenced their decision to implement or not and it has greatl% in#luencedtheir #inal choice o# technologies.

he te0tile and electronics industries had !een o!ject to a num!er o# targeted programs andregulator% initiati$es aimed at supporting an en$ironmental upgrading o# the industr%. =art o# these programs has directl% addressed the task to spur and de#ine an en$ironmental inno$ati$e

!eha$iour in the industr%. aken all together the% ha$e de#ined a changed pla%ing #ield, +hichhas in#luenced the pace and the direction o# en$ironmental inno$ations in the industr%. heconstruction sector has kicked o# later !ut resem!les the de$elopment path in regulation andindustr% response.

Donsensus and close co*operation among the main actors in the te0tile, electronics and partl%construction industr% (the trade organisations, the kno+ledge institutions, E=", themunicipalities and counties, and national 34 institutions) ha$e characterised the programsand regulator% initiati$es +ithin the industries. he #act, that the trade organisations ha$eadopted a strateg% o# the restructuring o# the !ranch, +hich has included an en$ironmentalmodernisation as a strategic option, has pa$ed the +a% to en$ironmental initiati$es in theindustr%. 6n general, the programs and initiati$es ha$e !ene#ited o# this consensus and co*operation. 6t has contri!uted to the consistenc% in the programs and initiati$es and has ena!ledconcerted action on the #rame+ork program o# cleaner technolog%, introduction o# en$ironmental management, the ela!oration criteria to eco*la!elling, and the product*oriented

program.

he outcome o# the programs and initiati$es has !een a high en$ironmental a+areness in theindustr%. En$ironmental considerations are no+ integrated in the search and decision

processes o# the enterprises. hroughout the process a group o# #rontrunners has participatedacti$el% * and ha$e in this process de$eloped their en$ironmental perception, i.e. the pro!lemsaddressed and the horiMon o# solution strategies. "doption o# technological solutions ma% ha$e

!een limited, !ut the% ha$e participated in a collecti$e learning process, in +hich the% ha$emo$ed #rom good housekeeping and su!stitution, to en$ironmental management s%stems, to

product oriented and to 5D" and eco*la!elling schemes. he main result has !een a change o# the +a% enterprises re#lects en$ironment ma% sho+ to !e the main achie$ement o# the

program.

5ooking at the anish te0tile #inishing industr%, the construction sector industr%, and theelectronics industr% the en$ironmental and technological polic% programmes has led to a +ideincremental introduction o# cleaner technolog%. 6n this process a selecti$e milieu o# theindustr% has !een produced1a) ithin the anish technolog% programme a sta!le constellation o# consultants and

research institutions ha$e #ormed a inter+o$en net o# competencies on te0tile d%eing processes,

!) he industr% and (local) en$ironmental authorities ha$e de$eloped a high degree o# consensus on en$ironmental perception (e.g. regulator% score*s%stem o# the en$ironmentalload o# d%es !ased on a common prioritisation). he industr% and the produced

constellation o# actors ha$e !een !ound together in a speci#ic en$ironmental perception.

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c) " progression in the s%stemic competencies +ere !uild up +ithin this net+ork, in ad%namic learning process the sector as a +hole has gone through the stages o# dissemination o# in#ormation, de$elopment and di##usion o# technolog%, introduction o#

en$ironmental management and product oriented strategies.

Doncerning the second t%pe o# industrial responsi$eness, the construction of new ecological or green products, +e ha$e #ound a radical approach in$enting or co*shaping ne+ greenmarkets. ithin the construction and in the !aker% sector +e ha$e traced a num!er o# !uttom*up initiati$es among green li#est%le promoters, green consumers and political mo$ements thatha$e #ormed the discursi$e and pragmaticall% !ackground #or ne+ green entrepreneurs. hus it+as these groups that #ormed the #ront running organic mo$ement in the /&A's that pa+edthe +a% #or an incremental institutionalisation during the /&'s L the organic la!elling schemethat con#irmed and normalised organic #ood. he same t%pe o# mo$ement occurred in the 'sand &'s +ithin the housing sector, and a num!er o# ecological housings and constructions

pupped up during /&*/&&A, !e#ore an institutional response took place.

he :inistr% o# ;ood has !een inno$ati$e in taking o$er the $arious pri$ate la!els on themarginal green markets in order to esta!lish a state guaranteed green market. B% time thehealth*, drinking +ater and en$ironmental regulation #rom the :inistr% o# ;ood and the:inistr% o# En$ironment and Energ% has !ene#ited #rom this market authorit% !asedrecognition o# organic #ood7 the% ha$e !een a!le to use the precautionar% principle !% rulingand su!$entioning #or the enlargement o# organic manu#actured #ields in enmark. henormalisation and sta!ilisation policies ha$e together +ith solid supports #or organicagriculture #ormed the !usiness route opportunit% #or the retail chain ?$ickl% to esta!lish their /''Q organic !akeries. hus, the trans#ormation could take place as organic #lour and sugar

+as on the market, +hereas ?$ickl% could pass impetuses #or su!contractors on margarine,marMipan, chocolate etc. to make an organic s+itch. Secondl% the kno+ledge net+orks and34 institutions +ithin the #ood sector pro$ided the necessar% primar% insights to make theorganic trans#ormation. Secondl% the market sta!ilisation o# organic #oods ha$e discoursi$el%institutionalised an alternati$e to all negati$e risk connotations in the #ood sector1 9:Os,stra+ shortens, penicillin, pollution o# ground +ater etc.

he construction sector ha$e gone through a parallel de$elopment, !ut the :inistr% o# Dit% 4Housing ha$e !een $er% late responsi$e to these de$elopment paths, and ha$e !een hesitant tolea$e a co*dependenc% upon the major construction, housing and construction materialindustries. 3egulator% it has !een the :inistr% o# En$ironment and the :inistr% o# ;ood that

ha$e !een issuing su!$ention schemes #or radical inno$ations in construction technologies andmaterials. 6n #act these e0tra*construction2housing polic% sectors ha$e !een a!le to a$oid the path dependenc% and technological trajector% that the :inistr% o# Dit% and Housing ha$e !eenlocked in. O# special interest is that la!our unions and occupational health interests ha$e !eenmajor #orces in pushing #or+ard a need #or #inding technological alternati$es +ith !oth anoccupational health and an en$ironmental !ene#it. B% the gradual articulation o# a joint andcoherent eco*health discourse +ithin housing and construction a sta!ile #ront has !een met !%a responsi$e polic% that ha$e issued 34 , su!$ention schemes and eco*standards #or ecological housing and construction materials. 8e+ green entrepreneurs ha$e on this

!ackground o# state supported 34 !een a!le to penetrate the regulati$e, economic andtechnological !arriers to alternati$e, ecological housing technolog%. he result has !een ne+

materials and kno+ledge that ha$e kicked o## a num!er o# local ecological housing projects.

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he latter t%pe o# polic% responsi$eness to green social mo$ements and discourses has !eenimportant #or the second +a$e o# entrepreneurs +ho ha$e dared to #orm ne+ technologicalinno$ations and pro#iles.

he most o!$ious strength o# anish E= is that it is de$eloping in -uite a responsi$e +a%,ena!ling the :inistr% o# the En$ironment to take up ne+ en$ironmental pro!lems andinitiati$es #rom research results, pu!lic de!ates and !usiness technolog% options at $er% short+arning. he consensus polic% st%le is, according to general e$aluation studies o# anish E=("ndersen /&&, /&&A, Dhristiansen /&&F, Holm /&&&, :ortensen /&&&, 8ielsen /&&A,allace /&&), !oth a strength and a +eakness. " strength, !ecause industrial trades are opento communicating on technological options and to participating in #inding en$ironmental

protection measures the% ma% !ene#it #rom. here is a practical capacit% #or co*ordinatingconsulting and en$ironmental monitoring +ith 34 initiati$es in cleaner su!stitutes or technologies, +hich ha$e esta!lished e##ecti$e #eed!ack mechanisms !et+een the E=", the

political s%stem, research and net+orking. he +eakness is that the minister and E=" $er%o#ten hesitate to en#orce legal and !inding rules that industr% strongl% opposes. " +eakness isalso the risks o# #alling into technological trajectories, +hich #it to +hat industrial suppliers o# en$ironmental e-uipment o##er.

Concluding remarks on ecological modernisation in Danishindustries

he aim o# the paper +as to anal%se the d%namic interpla% !et+een1

/. he esta!lishment o# a societal discourse on ecological modernisation

. he construction o# policies and polic% integration !et+een the :inistr% o# Business and6ndustr% and the :inistr% o# the En$ironment and Energ% in order to #acilitate ecologicalmodernisation

G. he set up o# ne+ institutions in some important !ranches o# industr%C. he practices o# #irms in order to carr% en$ironmentall% sound inno$ations through

6n relation to the discourse o# ecological modernisation +e note that the perspecti$e o# +in*+in has !een esta!lished as the +a% to understand the interpla% o# en$ironment and econom%.;urthermore +e note that this discourse has led to change o# policies and to the esta!lishmento# ne+ policies. "s +ell in the :inistr% o# Business and 6ndustr% as in the :inistr% o# theEn$ironment and Energ% it is re#lected ho+ to set the agenda in relation to ecological

modernisation. ;rom the perspecti$e o# the :inistr% o# Business and 6ndustr% PEn$ironment isseen as an element in a strateg% to secure international competiti$eness #or anish #irms andthe national econom% thus the market is seen as the prime Pdri$er. On the other hand, #romthe perspecti$e o# the :inistr% o# the En$ironment and Energ% there has !een a #ocus onen$ironmental capacit% !uilding in order to support a trans#ormation o# the en$ironmental

!eha$iour o# the companies. hese t+o di##erent #ocuses in relation to ecologicalmodernisations result in signi#icant di##erences in relation to the institution !uilding and theconstellations o# actors. 5ater on, +e are going to discuss our #indings in relation to thosedi##erent perspecti$es !ecause the relation !et+een marked stimuli and en$ironmental capacit%

!uilding is $er% important in order to understand the results o# speci#ic inno$ations.

On the other hand, a $er% important conclusion o# the studies are that institution !uilding inorder to support ecological modernisation has to !e understood as a re#lecti$e learning

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process. 6n a top*to+n perspecti$e +e note that policies has resulted in a long range o# institutional trans#ormations in the studied sectors. he programmes ha$e resulted in capacit%

!uilding and ne+ +a%s to support inno$ati$e conduct. 6n relation to this process there has

!een esta!lished learning processes !ased on as +ell internal as e0ternal interpretations o# strengths and +eaknesses on the e0isting con#igurations. his conclusion has to !e seen inrelation to the marked di##erences concerning as +ell the #orm o# institutional de$elopment asthe characteristics o# the in$ol$ed actors.

" common horiMon #or the #our studied sectors are that there ha$e !een a dominant trajector%o# technolog% that has !een de$eloped in connection +ith the sector speci#ic capacit% !uilding,esta!lishing o# standards and so on. his trajector% has !een a cogniti$e #raming #or thecommon interpretations that the stakeholders in the sector has used to communicate choice o# technolog% and there!% determining the en$ironmental per#ormance o# the companies. "nother common aspect is that the de$elopment o# ne+ technologies is seen as the +a% to reduce

en$ironmental conse-uences o# the production or related to the product. hen there aredistinct di##erences !et+een the sector that results in su!stantiall% di##erent d%namics andthere!% gi$e some important kno+ledge concerning ho+ the discourse o# en$ironmentalmodernisations results in the change o# industrial practices.

"n important starting point is the characteristics o# the technological change, i.e. +hether itrepresents a radical !reak +ith the technolog% path in the sector. his concerns as +ell thedegree o# change in relation to the su!stituted technolog% as it concerns ho+ the inno$ation#its into the e0isting technological s%stem. he not to surprising conclusion is that changes notrepresenting a radical !reak +ith e0isting trajectories are easier to realise !ecause o# astrategic selecti$it% in the technological s%stem. " some+hat less tri$ial conclusion #rom the

stud% o# the most radical inno$ation, the trans#ormation to organic !aker%, is that the radicalinno$ation is preconditioned !% an interaction o# a range o# simultaneous processes. "dominant compan% +ith the capacit% to construct its o+n markets and a central role in the$alue chain is staging the trans#ormation process in com!ination +ith a sector speci#ic capacit%

!uilding and institutionalisation process in relation to organic #ood. ;urthermore, there is asupport #rom other social actors especiall% the consumers. On the other hand, companies thatlacks these preconditions ha$e se$ere di##iculties to stage radical trans#ormations in spite o# en$ironmentall% related capacit% !uilding and demands #rom regulation.

his could !e read as i# market is the most important dri$er, !ut the case studies sho+ that thee0istence o# a market is a necessar% !ut not su##icient condition. ;urthermore, it +ould !e

+rong to consider the market an e0ternal $aria!le. On the other hand, the cases sho+ that themarkets are constructed in a social process. ;or e0ample in electronics it +as di##icult totrans#orm an incremental inno$ation to a commercial success !ecause regulation could notdeli$er the promised marked #or lead #ree circuits. 6n the te0tile industr% the inno$ation isrealised in an interpla% +ith a niche market #or Pgreen cotton esta!lished as an element o# a

!usiness strateg% +hile the #ailed inno$ation did not succeed !ecause it +as in no +a% relatedto the !usiness strateg% o# the #irm. Organic !read +as a e0tensi$e construction o# a market

!ased on an esta!lished market #or organic #ood. "nd lastl%, the case in the !uilding industr% isan e0ample o# an inno$ation that is integrated in a niche market #or ecological !uildingsupported !% a social mo$ement.

he market as a necessar% !ut not su##icient conditions is #or e0ample illustrated !% the !uilding and te0tile cases. 6n !oth cases the inno$ation is esta!lished in an interaction +ith the

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customer or the consumer. 6n the #irst e0ample it is a !usiness to !usiness relation to acompan% +ith a green market niche. 6n the second case it is a social mo$ement. he #irstinno$ation is #rom a technological point o# $ie+ not especiall% radical. 8e$ertheless, there is a

$er% limited di##usion o# the inno$ation. "lthough the second inno$ation #rom a technical pointo# $ie+ $er% easil% can su!stitute an e0isting product it slightl% more radical !ecause itcon#ronts esta!lished standards in the industr%. here#ore, it is situated as a niche product.hus it can !e concluded that the di##usion o# such inno$ations and more radical !reaks +ithe0isting trajectories presupposes an institutional learning process in$ol$ing capacit% !uildingsupporting the esta!lishing o# ne+ technolog% paths.

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Hansen Et Al 2002