Facilitating Sustainable Innovation through Collaboration

Innovation, sustainability, and collaboration are all related in their efforts to manage multiple dimensions of organizational and institutional policies and practices. This chapter provides an overview of the three topics and their relative importance to overall advancement of sustainability through innovations. Collaboration is necessary to achieve this goal and various collaborative arrangements and stakeholders in these arrangements are discussed. The chapter also introduces and discusses the various remaining chapters in this book and presents summaries, insights and linkages amongst these chapters.

Sustainability challenges imply that there are severe needs for intelligent innovation processes. This chapter presents four case studies on sustainability oriented collaboration; including experiences from advanced leadership training, the Øresund Science Region innovation system, mobility of sustainability expertise, as well as business developments for hardwood. Two cases employ “Triple-Helix” collaboration between companies, research and the public sectors. In a metaphor, the entrepreneur is presented as a “driver” with a need for appropriate instruments, a steering wheel and an inspiring vision. Investment and depreciation of capital are used in analogies that explain why investment thinking is relevant also within the environmental dimension. A sustainability oriented model of material recycling is used as a metaphor to clarify how the sustainability value of experience varies dependent on how and where it is used. Self-esteem, empowerment and freedom of action are found to be essential to facilitate transformative learning. In addition to open dialogue it is vital to mobilize sufficient concerted “investments” in “real life experiments” with new creative ideas. To build motivation to engage in renewal oriented innovation, it is important to elucidate the human sustainability advantages that are likely to evolve as a result of more knowledgeable innovation.

The notion of Public–Private Partnerships (P3) is ambiguous. To date, however, there has been little emphasis on universities in this connection, and their roles (if any) are still somewhat unclear. The question we ask, therefore, is: What is or could be the role of universities in P3s? In this chapter, the first part is dedicated to the discussion and clarification of the concept of public–private partnerships. The role of universities if and when actively participating in ‘life outside the ivory tower’ is addressed. These partnerships are also discussed in a regional context. With the point of departure in innovation theory, we combine ‘sustainable development’ with the Regional System of Innovation approach to propose a new concept – Sustainable Regional Innovation System – in which regional initiatives such as Public–Private–(Academic) Partnerships play an integrated role, not least in the context of ‘learning and innovation for sustainable development’. Two cases are presented to underline the importance of what is signified as Public–Private–Academic Partnerships (PPAP); i.e., partnerships, where universities are given – or take on themselves – a specific role. In such partnerships, we argue, mediation is a major function of universities, including both the provision of new knowledge and the conciliation of opposing views, and universities thus act as catalytic and institutionalizing entities.

In this chapter, we combine the ‘functions of innovation systems’ approach and the ‘socio-technical systems’ approach. We first consider whether seven functions of the innovation system surrounding the technology have been fulfilled: market formation, entrepreneurial activity, knowledge creation, knowledge diffusion, mobilisation of resources, presence of advocacy coalitions, and guidance of the search. We then investigate the availability of a ‘space’ for this new niche technology within the incumbent energy system. We apply our framework to the development and implementation of small urban wind turbines in the Netherlands in the period 2000–2007. We show that critical functions, such as knowledge diffusion and market formation, were underdeveloped and that serious bottlenecks were present in the incumbent energy system. Based on this case study, we formulate implications for collaboration and for policy makers.

Over the last 10 years or so the EU has supported many initiatives focused on enhancing regional competitiveness, regional innovation, and regional sustainability. Whilst a plethora of initiatives has been developed and presented, ongoing sustainability of regional innovation processes and regional innovation clusters still eludes us. A proposed solution is the Adaptive Model for Creating a RTD (Research and Technology Development) Investment Policy for Regions in Emerging and Developed Economies (CRIPREDE), which was developed as part of an EU FP6, Regions of Knowledge 2 co-funded project. The Adaptive Model was co-developed, and tested, in a highly interactive process, involving stakeholders and research organisations in six very different (political, cultural, economic) regions across the EU.

The Adaptive Model’s success is measured, in part, by the sustainable action plans that have been implemented in each of the regions involved in the project. Its development and success has been achieved through the underlying principles of the Triple-P, Triple Helix, and Entrepreneurial Imperative models. An overriding principle of the whole process is that the regional stakeholders are the drivers and owners of the regional developmental process and the implementation of the regional action plans derived from the Adaptive Model.

Sustainable development will be a major driving force for future developments in businesses. Most companies are fully aware of that, but find it difficult to translate this insight into concrete actions. We have observed that companies, in particular small and medium enterprises, find it difficult to determine how sustainability can affect their business. The FOCISS (Focussing Innovation Strategy for Sustainability) approach offers that assistance. We have developed FOCISS in collaboration with enterprises from diverse industry sectors. By this approach the ‘agenda’ and the conditions for sustainable business of a company, in its specific situation, can be established. Stepwise, key areas of relevance, major issues therein and finally the most promising innovations, in view of economics and sustainability, are assessed. The approach uses primarily the views and expertise of the people working in the company, which improves the exchange of views and information and strengthens the collaboration on such issues through all parts of the company. A clear focus on sustainability can also improve the basis for collaboration with outside stakeholders. It strengthens the commitment and ambition to integrate sustainability in business strategy.

This chapter analyses the emergence of sustainable innovations in a selected number of firms and addresses key explanatory factors that contribute to emergence and diffusion of the innovations. The focus is particularly on regional support structures that facilitated the innovation processes, and on gaps between the needs identified within firms’ innovation processes and functions provided by support structures. Ten sustainable innovation processes are analysed to gain insight in the relationship between the nature of the innovation process, the type of needs for firms, and the type of functions provided in regional innovation systems. It is concluded that especially for small and medium-sized enterprises (SMEs) demand articulation remains a major barrier as users are often only involved when the innovation is ready to enter the market, while regional support functions in this respect are deficient. Moreover, SMEs have major difficulty interpreting and anticipating sustainability policies and regulations at local and national levels, leading to innovations that face major regulatory barriers or are unable to cope with policy changes.

Sustainable regional development is understood as a process characterized by continuing attention to lasting economic prosperity which supports healthy ecological and human communities within a defined spatial area. This preliminary research focuses on disruptive innovation network structures and institutional arrangements that are essential theoretical components for sustainability. The presumption is that by better understanding the characteristics of networks that support innovation, we may more effectively leverage sustainable business practices toward an effort to foster sustainable regional development. Network theory and institutional offers a way to illuminate some of the existing network nodes and institutions supporting sustainable business practices in West Michigan (USA) and identifying ways that learning associated with these practices might be harnessed in the service of sustainable regional development. Network centrality, reachability and connectivity are explored.

To contribute to SRD, regional and national governments will be required to support businesses and social enterprises in improving the sustainability performance of their products and services. There have been a number of national and regional programmes supporting ecodesign in SMEs but it is well documented that the implementation of ecodesign still remains low. Much of the literature has focussed on the organisational and methodological barriers to ecodesign. This chapter will contribute to this literature by highlighting the regional dimensions of ecodesign with a particular focus on ecodesign interventions for Small to Medium Sized Enterprises (SMEs). This exploration will highlight three key factors (a) that ecodesign can contribute to SRD, (b) that systems failure presents a rationale for regional interventions to enable ecodesign and (c) there is the need for a new dialogue on the structure and content of interventions supporting ecodesign in SMEs. To support this discussion, four SME case studies originating from a recent regional ecodesign initiative in Wales will be presented as a means to explore strategies for future interventions. This ecodesign initiative was delivered by the Ecodesign Centre (EDC) and supported by the Welsh Assembly Government (WAG).

This chapter reviews two collaborative research and development projects in Australia, both focused on improved sustainability outcomes by small businesses. Each was funded by the NSW State Government, and built on established partnerships between university researchers and a local government body (Manly Council, New South Wales), and the researchers and a tourism industry association (Caravan & Camping Industry Association NSW). A theoretical model of engagement and state government policy on sustainable development underpins the approach used to analyze the case studies. Both the local government area and the caravan and camping industry have benefited from a number of financial incentives. Industry champions have been highly influential, while an extension model of capacity building and training has also contributed to the successful strategies. The common barriers to adoption of environmental management systems by industry operators who chose not to participate have been concerns about time, expertise, cost and bureaucracy. These case studies demonstrate the importance of collaborative partnerships; of context-specific strategies and approaches; and of adaptive management models to include the evaluation of both success and failure of process.

This chapter explores the strategic implementation of the cradle-to-cradle concept and suggests backcasting using sustainability principles as a systematic way to support decision-makers. The cradle to cradle concept seeks to learn from nature and to design using principles that emphasize the conversion of waste into food, the use of solar energy inputs, and the celebration of diversity. As such, it facilitates organizational transition toward enabling a societal infrastructure by participating in cyclical supply chains – a valuable complement to the green supply chain approach to organizational collaboration for sustainability. The specific contribution of this chapter to the cradle-to-cradle literature focuses on the integration of cradle-to-cradle design within a systems approach that permits analysis from a strategic sustainable development perspective. After usefully comparing cradle-to-cradle design principles with FSSD principles for sustainability, the authors integrate science-based principles with value-based principles as an asset to support backcasting using overarching sustainability constraints drawn from scientific principles for socio-economic sustainability. This framework is one that decision-makers can use flexibly to make mid-course corrections in the march toward a societal infrastructure that supports a targeted system in which all material flows are either part of a biological or a technical metabolism.

Rerouting social and corporate activities concerning sustainable change is one of the key challenges for many businesses today and in the near future. Implementing sustainable requirements in corporations necessitates the initiation of corporate strategic change and the development of sustainable innovations. In the light of a wide variation of corporate activities to cope with these challenges, the following questions arise: (1) When and why do companies pursue processes of strategic change to integrate sustainability and develop innovations? (2) Which effects and extents do these sustainable values and innovations have, and (3) what factors promote or inhibit sustainable strategic change? This study highlights integrative strategies for sustainable innovations on the basis of a case analysis of three companies and examines the organisational, the cultural as well as the structural conditions for active sustainable oriented corporate policies. The study analyses internal and external explanatory factors for the occurrence of sustainable strategic change processes, the conditions for a company’s commitment to sustainability, the conditions that result in strategic change, and the capability to generate sustainability-oriented (product) innovations in medium-sized and large companies. Moreover, it develops a framework that integrates both aspects of strategic content and strategy formation processes regarding sustainability. Thus, along with the strategic change literature the study distinguishes between the timing (i.e. proactive or reactive change) and the intensity of strategic change regarding sustainability and innovation strategies. The findings highlight the role of visions and options, the company interactions, the role of change agents and management and their values and norms, the companies’ history, and the history of business fields. It can be shown that proactive companies and companies having a high level of sustainable impact in their strategic changes or innovations depend on different influencing factors.

Existing scholarship regarding strategic alliances has been limited by the tendency to view alliance formation through a single theoretical lens and to focus solely on the economic aspects (e.g., acquisition of capabilities) of narrowly defined relationships. As yet, there has been little attention paid toward examining how strategic alliances—of all sorts—can address social, economic and environmental issues. This chapter addresses these concerns by integrating the resource-based view of the firm with institutional theory to assess firms’ decisions to participate in a strategic alliance. Drawing on these motivations, this chapter articulates a framework to characterize strategic alliances based on their competency- and legitimacy-orientation. A conceptual model is then constructed to examine the extent to which these strategic alliances are likely to encourage firms to adopt more (or less) proactive environmental strategies.

This chapter discusses the extent to which Dutch experiences with negotiated agreements between firms and public authorities could be used as a tool to improve environmental policies and foster collaboration and innovation for sustainability in Mexico. The Mexican context is analysed both in terms of perceived effectiveness of environmental regulation/existing voluntary agreements and in terms of attitudes and opinions of key players in the Mexican Industry regarding feasibility of negotiated agreements. Our findings show that there is good receptivity to the use of negotiated agreements both from the point of view of policy makers and industry leaders. The comparison with Dutch experiences shows no important gap between Mexican business leaders’ expectations regarding results in terms of efficiency gains and positive side effects and the results obtained by negotiated agreements in the Netherlands. Mexico benefits from a history of trust and fair play between the industrial sector and the government; homogeneity or clear leadership in polluting industrial sectors. Polluting firms are also concerned with their public Image and there is a widespread belief that the government will resort to other measures if negotiation fails. All the latter factors, which were determinant of success in The Netherlands, support the feasibility of using negotiated agreements as a collaborative strategy towards sustainability in Mexico.