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GIN2007 Conference: Sustainable Social and Ecosystem Stewardship, June 15-17, Waterloo

Making or breaking environmental innovation? Technological change and innovation markets in the pulp and paper industry. GIN2007 Conference: Sustainable Social and Ecosystem Stewardship, June 15-17, Waterloo Paula Kivimaa & Petrus Kautto

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GIN2007 Conference: Sustainable Social and Ecosystem Stewardship, June 15-17, Waterloo

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  1. Making or breaking environmental innovation?Technological change and innovation markets in the pulp and paper industry GIN2007 Conference: Sustainable Social and Ecosystem Stewardship, June 15-17, Waterloo Paula Kivimaa & Petrus Kautto Research Programme for Environmental Policy Finnish Environment Institute (SYKE)

  2. Changes facing the sector: globalising markets, lowering paper prices, etc. EU strategies highlighting environmental innovation GMCT: environmental innovations in the pulp and paper industry Environmental problems related to energy use and other sectors Successful environmental innovation, e.g. decoupling water emissions & production Background

  3. Research approach • Case study framework based on IS literature and our experience from innovation studies • Case studies of innovations & inventions offering potential (from a product value chain perspective) for • reduced use of fossil fuels • improved resource-efficiency • Case studies of environmental innovations from literature • Comments from pulp and paper industry experts

  4. A market perspective on the development of environmental innovations • Various factors have been important in the innovation processes • Knowledge inputs, entrepreneurialism, cooperation, public R&D support, public policies & market changes • The paper focuses solely on market factors • Other results very similar to previous studies • The most relevant findings from the point of view of environmental innovation • Help to explain how environmental policies affect innovation

  5. Changes in three types of market – existing, new, policy-created • Changes in existing markets for P&P products • Needs for improved efficiency, new products and new value chains • New/anticipated markets created by environmental policies • Bioenergy, CO2 trading, RFID tags/inlays, recyclable or recycled products • Changes in other sectoral markets • Facilitates innovation related to new product value chains or new energy solutions (save energy or produce renewable energy)

  6. Findings from empirical cases

  7. Conclusions • Support for previous research: innovation needs a variety of factors to emerge • Market influence crucial for low-tech industries dominated by incumbents • Simultaneous changes in three types of market! • Environmental policies can make or break the final development of environmental innovations • Especially of developments occuring on industry sector borderlines • NIS vs. internationalisation • NIS important in providing educational and R&D inputs & in facilitating networking • BUT innovation markets increasingly dependent on international developments, including the movement of environmental policies to the EU-level

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