Partnership for green competitiveness - An innovation system approach

The paper claims that the national innovation system (NIS) perspective, forming the basis for innovation policy but little applied to environmental issues, may represent a much needed framework for aligning competitiveness and sustainability issues. The paper argues that the NIS perspective represents a new policy rationale, a rationale first of all giving knowledge based innovation and competitiveness a pride of place.

The NIS analysis in this paper points to the challenges of an extended partnership, related to the complexity of the national innovation system. On the side of business related to the asymmetry but also connectivity of industry. On the side of government the authorities need to address the trade off between building long term high innovative capacity on eco-innovation and achieving urgent environmental goals.

The paper suggests a three pillar strategy for moulding the innovation system for eco-innovation by pointing to a simultaneous effort to pull the demand, push technology and, none the least, making companies’ strategic market makers on eco-innovation. Building knowledge forms the basis in all three pillars.

Obtaining widespread company proactivity makes up a cornerstone in the suggested NIS strategy for a greening of the innovation system This policy approach calls for a reinterpretation of the division of labour between government and business, which requires a major policy renewal. Policymakers need to re-address the delicate balance between regulation, fiscal measures and eco-entrepreneurship measures.

Taken together they should create a selection environment, which makes it easy and attractive to engage in eco-innovation and CSR for the bulk of the business community as well as the other actors in the innovation system. An important means to achieve this, the paper suggests, is to make the principle of rewarding the proactive a cornerstone in environmental policy making.

An extended partnership sets new demands on the rationale and competencies of the actors involved. It is a question whether the ministries of environment are able and willing to carry out such a partnership approach, or whether the contribution from other ministries (from research and innovation) are needed.