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October 26th 2012 Slide 1
CONFIDENTIAL
Critical success factors of Eco-Innovation: insights of a pan-European study
October 26th 2012 Slide 2
OECD: Organisation for Economic Co-Operation
and Development
What is OECD?
• A “club” of 30 industrialized
countries
• Forum for policy dialogue and
development based on science and
technology
• Provider of instruments for
harmonization, co-operation, cost
sharing and outreach
• This project about eco innovation.
• Verhaert is recognized eco-
innovation expert by OECD adjunct-secretaris-generaal
Role of OECD?
October 26th 2012 Slide 3
What is eco innovation?
‘Eco-innovation is the process of developing new products, processes or services
which provide customer and business value but significantly decrease environmental impact.’ Fussler, C. and James, P. (1996) Eco-innovation: A Breakthrough Discipline for Innovation and Sustainability (Pitman Publishing).
October 26th 2012 Slide 4
Can Europe combine ambitious environmental
objectives with strong industrial competitiveness?
Eco innovation aims at
creating economic &
environmental value
• Ecologic:
EU’s Co2 reduction
targets:
-20-30% by 2020
> 80% by 2050
October 26th 2012 Slide 5
Can Europe combine ambitious environmental
objectives with strong industrial competitiveness?
• Economic:
Eg. Japan, USA: eco
innovation at the heart
of their strategy for the
21st century
Trend in publications on eco-innovation
October 26th 2012 Slide 6
Why is there a need to stimulate eco
innovation in Europe?
Markets by
themselves will not
deliver the needed
solutions.
Clear policy signals
are essential
October 26th 2012 Slide 7
55 case studies from 14 countries:
Business models classified as:
• Greener product/process based models
• Waste regeneration systems
• Alternative energy-based systems
• Efficiency optimisation by ICT
• Functional sales and management services
• Innovative financing schemes
• Sustainable mobility systems
• Industrial symbiosis
• Green neighbourhoods and cities.
October 26th 2012 Slide 8
What is the goal of the project?
Incremental innovations will not lead
to a technological & ecological shift.
Explore the potential of radical &
systemic eco innovation and learn
how successes can be further
extended and accelerated through
the application and elaboration of
innovation policy
October 26th 2012 Slide 9
Degrees of innovation
Degrees of eco-innovation?
Incremental
Substantial
Radical
G r a v e t y o f u n m e t n e e d
Co
mp
ar
ativ
e e
ffe
ctiv
en
es
s
0 = no change
1 = total cure 0
= T
rivia
l
1 =
De
pth
October 26th 2012 Slide 10
Degrees of innovation
Eco efficiency Lifecycle management
Closed loop production (cradle to
cradle)
Industrial symbiosis
Green products
Eco - design
Product service systems
New models of provision
Spatial application
I N C R E M E N TA L /
D I S R U P T I V E
I N N O VAT I O N
R A D I C A L / S Y S T E M I C
I N N O VAT I O N
PRODUCTION PROCESS
PRODUCT & SERVICES
Pollution control
Cleaner production
O r g a n i z a t i o n a l b a r r i e r
October 26th 2012 Slide 11
Success factors to introducing eco innovations
Source OECD
Success factors of eco-innovation?
October 26th 2012 Slide 12
Success factors to introducing eco innovations
OECD Report Insights
1. Alliances with other firms and stakeholders:
Many firms implemented their eco-innovations in co-operation with other firms,
local authorities and other stakeholders.
Example: The Kalundborg industrial symbiosis project in Denmark
October 26th 2012 Slide 13
Success factors to introducing new business models
OECD Report Insights
2. Challenge the business models of existing firms: New and young
firms are prone to exploiting technological or commercial opportunities which have
been neglected by more established companies.
Example: Better Place
NOTE: Policy needs to create the room for such new firms by enabling their entry, exit and
growth, ensuring fair competition and improving access to finance, which remains a major
constraint for the entry and growth of young firms.
October 26th 2012 Slide 15
Success factors to introducing new business models
OECD Report Insights
3. Reinforce Customer behavior: Knowledge of green consumer behavior is important for environmental and business reasons. Eco innovations are first adopted by lead-users before coming to the mean stream user. Marketing campaigns and or financial stimulation can facilitate customer behavior.
Example: E-bike sharing
October 26th 2012 Slide 16
Success factors to introducing eco innovations
OECD Report Insights
4. Dedicated Leadership for assimilating big changes:
The dedication of the firms leadership is an important driver for assimilating changes
and introducing new eco-innovation concepts as cradle-to-cradle and closed-loop
production.
Source Live Long and prosper – James Gray
October 26th 2012 Slide 17
VERHAERT MASTERS IN INNOVATION® Headquarters
Hogenakkerhoekstraat 21
9150 Kruibeke (B)
tel +32 (0)3 250 19 00
fax +32 (0)3 254 10 08
More at www.verhaert.com
VERHAERT MASTERS IN INNOVATION® Netherlands
European Space Innovation Centre
Kapteynstraat 1
2201 BB Noordwijk (NL)
Tel: +31 (0)633 666 828
More at www.verhaert.com
VERHAERT MASTERS IN INNOVATION® helps companies and governments to innovate.
We design products and systems for organizations looking for new ways to provide value
for their customers.
We are a leading integrated product innovation center; creating technology platforms,
developing new products and business in parallel, hence facilitating new-growth strategies
for our clients.
