Policy mixes and policy feedback: Implications for green industrial growth in the Swedish biofuels industry

Policymakers have increasingly voiced an ambition to combine the transition to a climate-neutral society with a “green” domestic industrial agenda. In recent years, innovation systems scholars have advanced the understanding of the evolution of industries around renewable energy technologies as well as the role of policy feedback (and indeed politics) surrounding the development of domestic green industrial development policies. To take a step towards combining these literature streams, the purpose of this paper is to investigate the role of policy mixes and policy feedback in the emergence of domestic green industries. This is achieved in the empirical case of biofuels in Sweden, and the findings show that policy feedback dynamics created difficulties in aligning the national policy mix with the technology and industrial developments in the country. The resulting political uncertainty predominantly hampered the scaling up of domestic production capacity, while R&D and import of biofuels instead could grow strong. Based on this empirical case, a process model is developed to explain the role of policy feedback in the development of domestic industries, thus demonstrating how the growth of domestic industries is driven by the interplay of policy effects and various feedback processes. The findings suggest that future research into the role of policies in “green” domestic industry growth should devote more attention to the dynamics driving the co-evolution of policy, technology and industry structures

The outcomes of directionality: Towards a morphology of sociotechnical systems

The sustainability transitions literature departs from the idea that grand challenges such as climate change and rising inequality call for far-reaching changes in sociotechnical systems of production and consumption. This implies a dual interest in the directionality of innovation; some directions of change can be perceived as more desirable, while others may be more plausible due to the path dependent nature of sociotechnical change. The specific characteristics of the potential outcomes of directionality have, however, received little attention. Our aim is therefore to unpack and conceptualize the multidimensional space in which sociotechnical systems may adopt different shapes and configurations. We also provide three illustrative empirical examples where directionality has resulted in systems with different technical, social and spatial characteristics. The ideas put forward in this paper can be seen as a contribution to a morphology of sociotechnical systems and thereby support efforts to investigate or promote specific directions of change

How can pilot and demonstration plants drive market formation? Lessons from advanced biofuel development in Europe

This paper analyzes through what enabling mechanisms pilot and demonstration plants (PDPs) reduce supply and demand uncertainties, and thereby contributing to the market formation for novel sustainable technologies. The analysis builds on three case studies within the advanced biofuel development in Europe. For each case, we construct a narrative of the technology development and derive detailed insights into how technology actors use PDPs to drive market formation. We develop a comprehensive analytical framework, which highlights how PDPs contribute to supply uncertainty reduction through three main enabling mechanisms: building credibility for the technology, business ecosystem orchestration, and technology learning. The corresponding enabling mechanisms behind demand uncertainty reduction include technology standardization, constructing the narrative, and the creation of legitimacy for the technology. The paper also unfolds the composite activities of each mechanism, and outlines implications for technology developers, policymakers, as well as for the research community

Managerial and organizational challenges encountered in the development of sustainable technology: Analysis of Swedish biorefinery pilot and demonstration plants

Pilot and demonstration plants (PDPs) perform critical tasks in the development of new sustainable technology by bridging basic knowledge generation and large-scale commercialization. Significant private and public funding has therefore been allocated to PDPs addressing climate change, pollution abatement technology and/or increased resource efficiency. After technology verification, PDPs typically struggle with evolving objectives, and reports of stalled or delayed development are common. Key problems may center on technical difficulties, but challenges of a non-technical nature are equally important, not least for the development of clean technology. This paper draws on a longitudinal case study of four PDPs used for advanced biorefinery technology development in Sweden and delineates the key managerial and organizational challenges that arise in and around such plants. By taking the actor networks around PDPs as the main unit of analysis, this paper gives a detailed description of various challenges, such as the division of responsibility for the operation and ownership of the PDPs, unclear roles and objectives, and the lack of specific competences and resources in the actor networks. One important conclusion is that improved knowledge about such challenges should increase the resilience of actor networks in and around PDPs, and also help shorten the formative phase of developing sustainable technology

Shaping factors in the emergence of technological innovations: The case of tidal kite technology

The technological innovation systems (TIS) literature offers a detailed and dynamic understanding of factors that enable successful innovation. However, few studies analyze what determines where in space value chain elements are developed as a new technology is diffused on a large scale. The purpose of this paper is to show how the TIS approach can be used to identify and analyze factors that shape spatial trajectories of emerging technologies. It proposes an adapted analytical framework that expands the conventional focus on one-dimensional supporting and blocking factors, to shaping factors that incorporate the spatiality of innovation. The approach is illustrated by examining innovation in tidal kite technology. The analysis finds that a supportive local context in western Sweden during the infancy of tidal kite technology, together with the availability of competent engineers and business development professionals, promoted the formation of locally embedded knowledge and competence. This in turn created a spatial path dependency that made developments gravitate towards Sweden, although the lack of domestic markets has also increasingly driven an expansion of activity to other regions, in particular the UK. Moreover, the analysis shows that shaping, and not only stimulating, the growth of emerging TIS is an important challenge for regional policymakers, and highlights the need for international policy coordination. The paper concludes that analyzing shaping factors in the emergence of new TISs can yield important insights, some of which may be overlooked with a narrow analytical focus on supporting and blocking factors

The policymaking process of transformative innovation policy: a systematic review

There is an emerging literature discussing the limits and boundaries to governing socio-technical change for addressing grand challenges through innovation policy.\ua0While there are differences within this literature with regard to the researchers\u27 points of departure, there seems to be an agreement on two points: that there is a need for knowledge on how innovation policy can be used to address grand challenges and that practices and associated changes in administrative and organizational capacities of public organizations will be key for delivering such transformative policies.\ua0In the literature, important steps have also been made towards formulating a new transformative innovation policy agenda and supporting the re-organization of the innovation policy process.\ua0In this paper, we address the fact that the current understanding of what characterizes the transformative innovation policy paradigm, its roots and branches, and the actual contributions of the proposed frameworks on practical aspects of the policymaking process is rather unclear. One of many remaining questions is to which extent current writings contribute to our basic understanding of the policymaking process in terms of agenda setting, policy design, legitimation, implementation, evaluation and policy learning.\ua0The purpose of this paper is therefore to take stock of the current understanding of the specificities and challenges of transformative innovation policy throughout the policymaking process and examine the actual contributions for practical policymaking. This is achieved through a systematic review of the received literature on transformative innovation policy (and related concepts). We\ua0synthesize the contributions of the current literature to our understanding of how policymakers – in the context of transformative innovation policy – should set agendas; design, legitimate, implement, monitor and evaluate policies; and learn from their experiences.\ua0This allows for identifying important aspects and challenges related to different stylized stages of the process, as described by the transformative innovation literature, as well as avenues for further research

The limits of academic entrepreneurship: Conflicting expectations about commercialization and innovation in China\u27s nascent sector for advanced bio-energy technologies

Despite many years of substantial government research funding, advanced bio-energy technologies in China have seen limited commercial application. Chinese policy makers are increasingly critical of academic organizations for neglecting their role in the transfer of scientific results into industrial applications. We interviewed a selection of Chinese research groups working on bio-energy technologies, and asked them to describe their efforts at commercialization. We found that they focus their research on technological pathways with commercial potential, they patent and attempt to license their technologies, they are highly involved in large scale demonstration plants, and have created a number of new firms. Industry and government may have unrealistic expectations on the maturity and scale of technologies that academia can develop, however. These findings contrast with many earlier analyses of early commercialization stages of novel technologies, which have commonly identified lacking academic entrepreneurship as a root cause in stalling development

Examining legitimatisation of additive manufacturing in the interplay between innovation, lean manufacturing and sustainability

In response to hypercompetition, globalisation and increasing consumer expectations, many manufacturing firms have embraced lean manufacturing (LM). The primary goal of LM is to reduce/eliminate waste (muda). There is broad consensus as to what constitutes waste, but not on LM implementation. Implementation is not prescriptive with each firm relying on a different combination of administrative, process and routine change/innovation. Lean manufacturing brings about incremental change relying on administrative, process and routine levers. It best fits mass production where process variability is low and demand is high and stable. Lean manufacturing can significantly reduce waste but not eliminate waste, and the attained benefits have not always lived up to expectations. Additive manufacturing (AM) promises to revolutionise manufacturing beyond recognition by eliminating or drastically removing the waste thereby achieving sustainability. But AM is at its formative stage – the space between the concept and growth - where many promising breakthrough technologies fail. To reach its full potential, it needs to achieve high-scale adoption. In this paper, we examine how AM can significantly reduce/eliminate waste and how it can deliver triple bottom line on an unprecedented scale. We contend that AM, if adopted deeply and widely, will take LM to its final frontier, but there are a number of impediments to this end. We identify legitimation as critical to its wide diffusion and develop a number of propositions expediting AM's legitimation. Legitimation of AM will ensure its deep and broad diffusion and should this happen, waste will be a thing of the past an important stride towards sustainable future