Download Innovation and Environmental Policies for Sustainable Development

Innovation and Environmental Policies for
Sustainable Development
Ken Guy
Wise Guys Ltd.
Six Countries Programme Conference
Brussels
February 28 - March 1, 2002
www.wiseguys.ltd.uk
Introduction
www.wiseguys.ltd.uk
Introduction
Key issues concerning innovation policy,
environmental policy and sustainable development
www.wiseguys.ltd.uk
Introduction
Key issues concerning innovation policy,
environmental policy and sustainable development
What can innovation policy do for sustainable
development?
www.wiseguys.ltd.uk
Introduction
Key issues concerning innovation policy,
environmental policy and sustainable development
What can innovation policy do for sustainable
development?
What can environmental policy do for innovation?
www.wiseguys.ltd.uk
Policy Spheres
Industrial Policy
Innovation Policy
Environmental Policy
Innovation Policy for
Sustainable Development
Sustainable Development
Policy
www.wiseguys.ltd.uk
Definitions
www.wiseguys.ltd.uk
Definitions
The aim of industrial policy is to promote
economic ‘well-being’
www.wiseguys.ltd.uk
Definitions
The aim of industrial policy is to promote
economic ‘well-being’
The aim of environmental policy is to promote
environmental ‘well-being’
www.wiseguys.ltd.uk
Definitions
The aim of industrial policy is to promote
economic ‘well-being’
The aim of environmental policy is to promote
environmental ‘well-being’
The aim of sustainable development is to
maximise environmental productivity and
efficiency within economic production processes
www.wiseguys.ltd.uk
Definitions
The aim of industrial policy is to promote
economic ‘well-being’
The aim of environmental policy is to promote
environmental ‘well-being’
The aim of sustainable development is to
maximise environmental productivity and
efficiency within economic production processes
The aim of innovation policy is to encourage
changes in the amount, rate and direction of
innovation - but only if externalities apply
www.wiseguys.ltd.uk
Innovation Policy
www.wiseguys.ltd.uk
Innovation Policy
From additionality and competitiveness to broader
socio-economic goals
www.wiseguys.ltd.uk
Innovation Policy
From additionality and competitiveness to broader
socio-economic goals
But has innovation policy worked?
www.wiseguys.ltd.uk
Innovation Policy
From additionality and competitiveness to broader
socio-economic goals
But has innovation policy worked?
‘Yes’ at one level, ‘don’t know’ at another
www.wiseguys.ltd.uk
Innovation Policy
From additionality and competitiveness to broader
socio-economic goals
But has innovation policy worked?
‘Yes’ at one level, ‘don’t know’ at another
But our increased understanding of how
innovation systems work provides us with a few a
policy tips
www.wiseguys.ltd.uk
Policy Tips
www.wiseguys.ltd.uk
Policy Tips
Policy intervention should target the weakest links
www.wiseguys.ltd.uk
Policy Tips
Policy intervention should target the weakest links
Individual policy instruments are unlikely to have
a dramatic impact on system performance
www.wiseguys.ltd.uk
Policy Tips
Policy intervention should target the weakest links
Individual policy instruments are unlikely to have
a dramatic impact on system performance
Hence the need for a broad policy mix
www.wiseguys.ltd.uk
Policy Tips
Policy intervention should target the weakest links
Individual policy instruments are unlikely to have
a dramatic impact on system performance
Hence the need for a broad policy mix
And a system of ‘strategic intelligence’ to help
formulate the mix
www.wiseguys.ltd.uk
A Simple Innovation System
Publ ic Sect or
Knowle dge
User s
Universities
Intermediate and End
Consumers
S&T Training and
Education
Market for Goods and
Services
Universities
Knowle dge
Cr eato r s
www.wiseguys.ltd.uk
Pr i vat e S ect or
Basic Scientific
Research
Firms
Applied R&D and
Product/Process
Development
More Tips
www.wiseguys.ltd.uk
More Tips
All parts need to interact well if the system is to
function smoothly
www.wiseguys.ltd.uk
More Tips
All parts need to interact well if the system is to
function smoothly
Stimulating ‘knowledge creation’ in the private
sector is vital but difficult
www.wiseguys.ltd.uk
More Tips
All parts need to interact well if the system is to
function smoothly
Stimulating ‘knowledge creation’ in the private
sector is vital but difficult
S&T education and training is needed to improve
social capital and absorptive capacity
www.wiseguys.ltd.uk
More Tips
All parts need to interact well if the system is to
function smoothly
Stimulating ‘knowledge creation’ in the private
sector is vital but difficult
S&T education and training is needed to improve
social capital and absorptive capacity
Linking or ‘bridging’ strategies have become
increasingly important
www.wiseguys.ltd.uk
A Simple Policy Classification Scheme
Public Sector
Knowledge
Users
Knowledge
Creators
Reinforcement Policies
Bridging Policies
www.wiseguys.ltd.uk
Private Sector
Summary of Simple Tips
Base policy prescriptions on strategic analysis of
weak nodes in innovation systems
Tackle these weaknesses via broad policy mixes
Include measures which strengthen human
resources
Include bridging measures aimed at improving
knowledge and information flows
Experiment, evaluate and feed back ‘strategic
intelligence’
www.wiseguys.ltd.uk
Environmental Policy
www.wiseguys.ltd.uk
Environmental Policy
Focus on the interaction with technology
development, innovation and economic well-being
www.wiseguys.ltd.uk
Environmental Policy
Focus on the interaction with technology
development, innovation and economic well-being
Evidence that regulatory change can stimulate
relevant technological change - though change is
often incremental and slow
www.wiseguys.ltd.uk
Environmental Policy
Focus on the interaction with technology
development, innovation and economic well-being
Evidence that regulatory change can stimulate
relevant technological change - though change is
often incremental and slow
Many traditional instruments also successful, e.g.
R&D programmes, though under-critical and too
short-term
www.wiseguys.ltd.uk
Environmental Policy
Focus on the interaction with technology
development, innovation and economic well-being
Evidence that regulatory change can stimulate
relevant technological change - though change is
often incremental and slow
Many traditional instruments also successful, e.g.
R&D programmes, though under-critical and too
short-term
But high barriers to innovation in many
environment-related areas
www.wiseguys.ltd.uk
What Can Innovation Policy Do for
Sustainable Development?
www.wiseguys.ltd.uk
What Can Innovation Policy Do for
Sustainable Development?
 Apply a broad policy mix
www.wiseguys.ltd.uk
What Can Innovation Policy Do for
Sustainable Development?
 Apply a broad policy mix
 UK study recommended a mix which included:
 Target setting
 Financial support
 Support for environmental R&D
 Support for the training of researchers
 Prizes for innovations which reach environmental objectives
 Tax incentives for environment-friendly innovations
 A National Environment facility to manage and channel
environmental innovation
 Political and corporate leadership and clear statements of intent
www.wiseguys.ltd.uk
What Can Innovation Policy Do for
Sustainable Development?
 Apply a broad policy mix
 UK study recommended a mix which included:
 Target setting
 Financial support
 Support for environmental R&D
 Support for the training of researchers
 Prizes for innovations which reach environmental objectives
 Tax incentives for environment-friendly innovations
 A National Environment facility to manage and channel
environmental innovation
 Political and corporate leadership and clear statements of intent
 Combat uncertainty and ignorance about ‘correct’ policy
prescriptions with experimentation and evaluation
www.wiseguys.ltd.uk
What Can Environmental Policy Do for
Innovation?
www.wiseguys.ltd.uk
What Can Environmental Policy Do for
Innovation?
Much current innovation policy is geared to
improving the quality of stocks and flows within
innovation systems
www.wiseguys.ltd.uk
What Can Environmental Policy Do for
Innovation?
Much current innovation policy is geared to
improving the quality of stocks and flows within
innovation systems
But there is still scope for quantity measures,
especially in terms of stimulating R&D
expenditure in the private sector
www.wiseguys.ltd.uk
What Can Environmental Policy Do for
Innovation?
Much current innovation policy is geared to
improving the quality of stocks and flows within
innovation systems
But there is still scope for quantity measures,
especially in terms of stimulating R&D
expenditure in the private sector
Combining regulatory measures with traditional
innovation policy instruments could overcome
inertia in areas where environmental and profit
motives will eventually coincide
www.wiseguys.ltd.uk