Thomas Budde Christensen Roskilde University, Denmark tbc@ruc.dk

1. Cleaning the diesel engine emissions- Facilitating technology push through cluster development strategies in the Danish automotive particulate filter industry Thomas Budde Christensen Roskilde University, Denmark tbc@ruc.dk

2. Background • The Lisbon process: Economy, Environment and Social cohesion • Air quality in urban areas. Enhanced focus on negative health effects related to particulate emissions from diesel vehicles • The European Commission has launched a draft directive for euro 5 standards for heavy-duty diesel vehicles to be enforced in 2008 with a cut in maximum emission limit on particulate emission from 0,0050 g/km (euro 4) to 0,002 g/km (euro 5). • The NOx emission limits will also reduced or a euro 6 will be proposed in the near future. • EU legislation provides market potential for emission control manufacturers!

3. Research question • How can and Danish innovation strategy for emission control manufacturers be designed in order to • reduce negative health effects from particulate emission from diesel vehicles and • improve innovation and competitiveness of Danish emission control manufacturers to the mutual benefit of employment and economic growth

4. Methodology • Case studies of four Danish diesel particulate filter manufacturers: • Case studies based on explorative interviews and visits at production plants and focussed on: • Important innovation issues for the companies, • supply chain dynamics and • local business environment (cluster relations) • Theory: Michael Porter, Peter Wells, Klaus Rennings • Conclusion: Innovation issues and action plan

6. Environmental Innovation Economic structure: Clusters and globalisation Outsourcing, mergers and acquisitions Process: Mass production, lean production, modular production and platforms Product: Eco design. Emphasis on green technologies Source: Wells 2004

7. Existing environmental law Material efficiency Product quality Technology push Regulatory Push/pull Product palette Energy efficiency Expected regulation Eco- innovation Market share Costumer demand market pull Image Competition Source: Rennings 2000 New markets Labour costs Forcing environmental innovation Standard OHS

8. Findings from case studies: innovation issues Economic structure: • Marked requirements: Meeting euro 5+6 and future requirements in the European market and stricter requirements on the US market. Supplying niche markets such as non-road vehicles. • Automotive sector requirements: Development of integrated emission control systems (integrating silencers, catalytic converters and diesel filters). Danish suppliers to become system integrators (tier 1) or niche producers. Product development: • Silicon carbide diesel particulate filter: Negative trade off with CO2? Effects of biofuels? Improved regeneration solutions for particulate filters • Selective Catalytic Reduction: Development of SCR technology including additives and applications. Infrastructure development for SCR technology additive including additive dispensers at the vehicle refuelling facilities. Maintenance and control system. • Enhanced collaboration with research institutions • Demonstration projects: particulate filters and SCR technology. Process: • Strategic initiatives focused on cost reduction of emission control equipment. Large scale production, lean production initiatives including, automotive quality certification (TS 16949) at emission control system suppliers

9. Conclusion: Action plan

10. Thank you Thomas B. Christensen Roskilde University, Denmark tbc@ruc.dk