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Vanessa OLTRA and Maïder SAINT JEAN GREThA Bordeaux IV University

Incrementalism of environmental innovations versus paradigmatic change: a comparative study of the automotive and chemical industries. Vanessa OLTRA and Maïder SAINT JEAN GREThA Bordeaux IV University. Introduction. Research project (DIME network) :

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Vanessa OLTRA and Maïder SAINT JEAN GREThA Bordeaux IV University

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  1. Incrementalism of environmental innovations versus paradigmatic change: a comparative study of the automotive and chemical industries Vanessa OLTRA and Maïder SAINT JEAN GREThA Bordeaux IV University 5th EMAEE Conference, 17-19 May 2007, Manchester (UK)

  2. Introduction • Research project (DIME network): • « Environmental innovations: indicators, stylised facts and sectoral analyses » (coordinator: V. Oltra) • The purpose is to collect and to extend theoretical and empirical knowledge on environmental innovations and on their impact upon industrial dynamics in a sectoral perspective • Main research questions: • What are the characteristics and the specificity of environmental innovations, especially compared to conventional innovations? • What are the effects of environmental regulations upon innovation? • How can we measure environmental innovations? What kind of data and indicators can be used? • Can we identify some sectoral patterns of environmental innovations? 5th EMAEE Conference, 17-19 May 2007, Manchester (UK)

  3. The purpose of the paper is to compare the patterns of environmental innovations and the technological trajectory of two industrial sectors: automotive and chemicals • Why these two sectors? • Strong regulatory context • High R&D intensity • Concentration of innovation and entry barriers • But, significant differences in terms of type of innovation (radical vs incremental) and type of environmental regulations Common features 5th EMAEE Conference, 17-19 May 2007, Manchester (UK)

  4. - The framework - • Environmental policy • Instruments: • regulation and standards, • economic instruments, • voluntary agreements • Characteristics: • time frame, stringency, flexibility, • costs, uncertainty • Technological regime • Market structure • Knowledge base • Technological opportunities • Appropriability conditions • Networking: vertical relationships, • public-private interactions • Patterns of environmental • innovation • Radical / incremental innovations • End of pipe / clean technology • Sources of innovation • Persistence of dominant • design / paradigmatic changes 5th EMAEE Conference, 17-19 May 2007, Manchester (UK)

  5. The automotive industry: gradualism of environmental innovations in LEVs • Environmental policy • A dense and diversified regulatory context • Technology-forcing emission standards • Differences among countries (EU, US, Japan): • targets, stringency, type of instruments • (e.g. the ZEV Mandate) • Patterns of environmental innovation • Gradualism of environmental innovations: • Continuous improvements of the • dominant design • Technological competition among LEVs: • diversity of options and • technological complementarities • Sources of lock-in: scale effects, • costs, infrastructures, slow fleet renewal • Technological regime • A complex system regime • Concentration of innovation and • technological barriers to entry • High investment in R&D and • intensive use of patents • Close relationships with • equipment suppliers 5th EMAEE Conference, 17-19 May 2007, Manchester (UK)

  6. Comparison between emissions limit values for cars in EU, Japan and US 5th EMAEE Conference, 17-19 May 2007, Manchester (UK)

  7. Evolution of the cumulated number of patents 5th EMAEE Conference, 17-19 May 2007, Manchester (UK)

  8. The case of green chemistry • Environmental policy • Stringency of international regulations • Product bans • Adoption of voluntary agreements • Role of prevention policy: • the 12 principles of Green Chemistry • Patterns of environmental innovation • Progressive shift towards green chemistry: • new knowledge base and tools, • increasing patent activity • Major source of innovation: • universities and government agencies • Sources of lock-in: • economies of scale and scope • Technological regime • A science-based regime • High R&D investment and • intensive use of patents • Concentration of innovation and • technological barriers but, • differences among segments • Public-private partnerships 5th EMAEE Conference, 17-19 May 2007, Manchester (UK)

  9. International comparison of patent activity in green chemistry (source: Nameroff et al. 2004) 5th EMAEE Conference, 17-19 May 2007, Manchester (UK)

  10. Conclusions Favourable conditions to the shift to green paradigms: • Stringency of regulation • Prevention and prohibition principles • The definition of a common framework: the 12 principles of green chemistry • The type of technological regime: science-based regime 5th EMAEE Conference, 17-19 May 2007, Manchester (UK)

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