Digital innovation's contribution to sustainability transitions

Digital innovation is increasingly mentioned as a potential key contributor to sustainability transitions. However, there has been little theoretical discussion of this topic. In this conceptual paper, the authors draw on literature on both sustainability transition studies and innovation studies to explore critically the contribution of digital innovation in sustainability transitions. They conceptualize transitions as fundamental changes in patterns of production and consumption, such as those relating to energy. Radical innovation leads to changes in the structure of socio-technical systems underlying such patterns, while incremental innovation contributes to maintaining the structure and current patterns. The authors suggest that digital innovations may contribute positively to sustainability transitions through couplings with sustainable innovations. They propose the following typology of such couplings: incremental twin innovations, sustainability supported digital innovations, digitally supported sustainable innovations, and radical twin innovations. Radical twin innovations may possess the greatest potential for sustainability transitions, as they are linked to structural change and thus open new pathways for sustainability transitions, whereas incremental twin innovations merely optimize current unsustainable systems. The typology is illustrated with examples from shipping and from electricity systems, and some of the complexities of twin transitions encountered by researchers and practitioners alike are discussed.publishedVersio

Norwegian ship-owners' adoption of alternative fuels

The shipping sector's rising greenhouse gas emissions are often considered “hard-to-abate”. Some ship-owners have recently adopted or started to consider the adoption of alternative fuels, but systematic studies of this are still lacking. We address this gap by studying how ship-owners differ in both actual and intended adoption of alternative fuels. We analyze data from a unique survey with 281 ship-owners in Norway, a major ship-owning country and center for maritime technology development, with descriptive statistics and analysis of variance. We find early adopters among large and established ship-owners in offshore, international cargo and domestic passenger shipping segments, which are often subjected to specific contractual demands for alternative fuel adoption. Laggards were typically small and young ship-owners operating in shipping segments where demands for alternative fuel adoption are weak. Our findings also suggest that firms' business strategy and financial and knowledge resources may have relevance for ship-owner's adoption of alternative fuels. Our study has implications for national and international policymaking, highlighting for example how contracting mechanisms can be an effective tool in incentivizing the adoption of alternative fuels.publishedVersio

Corporate entrepreneurship and sustainability transitions: resource redeployment of oil and gas industry firms in floating wind power

It has been recently argued that the vast resources of established firms can potentially accelerate sustainability transitions. This paper contributes to the study of such possibilities by investigating the resource redeployment of three Norwegian oil and gas industry firms in corporate ventures in floating wind power technologies. Using interview and document data, the findings show that the opportunity to use existing firm resources was a key motivation for established firms to engage in entrepreneurship in such technologies. The firms could redeploy their specialised and general-purpose resources in these entrepreneurial ventures, and develop new technologies on the basis of their existing resources. However, also challenges and controversies were observed. This paper thus suggests that the process of resource redeployment can help to explain why, and describe how, established firms may engage in cleantech innovation through corporate entrepreneurship

Chapter 17: The energy sector: an industrial perspective on energy transitions

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Blending new and old in sustainability transitions: Technological alignment between fossil fuels and biofuels in Norwegian coastal shipping

Facing increasing pressure to decarbonize, innovation within the shipping sector has turned to low-and zero carbon solutions. In this paper we investigate how the development and implementation of biodiesel and liquefied biogas (LBG) in Norwegian coastal shipping has been influenced by the technological alignment with fossil fuels. We understand this influence to emanate from the (mis)match of biofuels with the structure of coastal shipping (e.g. infrastructure, knowledge, institutions, actors) which has been shaped by fossil fuels. This way we contribute to the development of Technological Innovation Systems (TIS) framework by discussing the effect of sectoral cross-technology externalities on the functionality of a TIS. Our core data consists of semi-structured interviews, supported by a firm survey with Norwegian shipowners. Our results show that the technological alignment provides the biodiesel and LBG TISs with several benefits, such as access to established markets and infrastructure, which suggests that Norway to some extent has good conditions for maritime biofuel markets to form. However, two major barriers for implementation of biofuels are fuel availability and cost. Considering the competition with battery-electric and hydrogen solutions, the positive externalities of the interchangeability between fossil and biofuels are insufficient to make biodiesel and LBG competitive contenders for coastal shipping. In order to upscale implementation of biofuels in the Norwegian coastal shipping sector, which is needed to reach national and international emission targets, there is a need for strengthened policy interventions. To establish market formation, subsidies for biofuels and feed-in targets would be crucial policy instruments

Blending new and old in sustainability transitions: Technological alignment between fossil fuels and biofuels in Norwegian coastal shipping

Facing increasing pressure to decarbonize, innovation within the shipping sector has turned to low-and zero carbon solutions. In this paper we investigate how the development and implementation of biodiesel and liquefied biogas (LBG) in Norwegian coastal shipping has been influenced by the technological alignment with fossil fuels. We understand this influence to emanate from the (mis)match of biofuels with the structure of coastal shipping (e.g. infrastructure, knowledge, institutions, actors) which has been shaped by fossil fuels. This way we contribute to the development of Technological Innovation Systems (TIS) framework by discussing the effect of sectoral cross-technology externalities on the functionality of a TIS. Our core data consists of semi-structured interviews, supported by a firm survey with Norwegian shipowners. Our results show that the technological alignment provides the biodiesel and LBG TISs with several benefits, such as access to established markets and infrastructure, which suggests that Norway to some extent has good conditions for maritime biofuel markets to form. However, two major barriers for implementation of biofuels are fuel availability and cost. Considering the competition with battery-electric and hydrogen solutions, the positive externalities of the interchangeability between fossil and biofuels are insufficient to make biodiesel and LBG competitive contenders for coastal shipping. In order to upscale implementation of biofuels in the Norwegian coastal shipping sector, which is needed to reach national and international emission targets, there is a need for strengthened policy interventions. To establish market formation, subsidies for biofuels and feed-in targets would be crucial policy instruments.publishedVersio

Complementarity formation mechanisms in technology value chains

Recent literature has begun to discuss complementarities between sectors and technologies in the context of sustainability transitions. This paper contributes to this literature by theorizing complementarity formation mechanisms underlying such positive interactions within and across technology value chains. It pursues empirically founded theory building based on a case study of innovation in battery-electric, hydrogen and liquefied biogas technologies in Norwegian coastal shipping. Three complementarity formation mechanisms in technology value chains are identified: synchronization, amplification, and integration. Synchronization points to the need for co-development between the input and user sectors of a technology value chain. Amplification refers to the necessary expansion of input sectors to match the growing demand in user sectors. Finally, integration highlights the potential of convergence between different technology value chains in one or more user sectors. The paper concludes with a discussion of how policy may leverage such complementarity formation mechanisms to foster innovation in zero‑carbon technologies

Complementarity formation mechanisms in technology value chains

Recent literature has begun to discuss complementarities between sectors and technologies in the context of sustainability transitions. This paper contributes to this literature by theorizing complementarity formation mechanisms underlying such positive interactions within and across technology value chains. It pursues empirically founded theory building based on a case study of innovation in battery-electric, hydrogen and liquefied biogas technologies in Norwegian coastal shipping. Three complementarity formation mechanisms in technology value chains are identified: synchronization, amplification, and integration. Synchronization points to the need for co-development between the input and user sectors of a technology value chain. Amplification refers to the necessary expansion of input sectors to match the growing demand in user sectors. Finally, integration highlights the potential of convergence between different technology value chains in one or more user sectors. The paper concludes with a discussion of how policy may leverage such complementarity formation mechanisms to foster innovation in zero‑carbon technologies

Norwegian ship-owners' adoption of alternative fuels

The shipping sector's rising greenhouse gas emissions are often considered “hard-to-abate”. Some ship-owners have recently adopted or started to consider the adoption of alternative fuels, but systematic studies of this are still lacking. We address this gap by studying how ship-owners differ in both actual and intended adoption of alternative fuels. We analyze data from a unique survey with 281 ship-owners in Norway, a major ship-owning country and center for maritime technology development, with descriptive statistics and analysis of variance. We find early adopters among large and established ship-owners in offshore, international cargo and domestic passenger shipping segments, which are often subjected to specific contractual demands for alternative fuel adoption. Laggards were typically small and young ship-owners operating in shipping segments where demands for alternative fuel adoption are weak. Our findings also suggest that firms' business strategy and financial and knowledge resources may have relevance for ship-owner's adoption of alternative fuels. Our study has implications for national and international policymaking, highlighting for example how contracting mechanisms can be an effective tool in incentivizing the adoption of alternative fuels