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Copernicus Institute of Sustainable Development Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition Prof. Marko Hekkert
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Page 1: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Copernicus Institute of Sustainable Development

The virtue of Innovation Systems Analysis for policy makers and other stakeholders inthe Energy Transition

Prof. Marko Hekkert

Page 2: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Who is talking?

• Prof of Dynamics of Innovation Systems

• Head of Innovation Studies (35 fte)

• Part of Copernicus Institute (120 (fte)

• Part of Utrecht University

Page 3: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Page 4: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Page 5: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

This talk

• Overview of what we have been doing in this field

• Focus on science – policy interaction using the TIS approach

Page 6: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Long history in TIS research

• Why? Interested in emergence of new technologies Innovation is a collective activity Technology characteristics, actors + institutional

settings all matter (structure) Technological fields differ Leads to policy relevant outcomes – problem

oriented Shift from structure to processes

Page 7: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Quick tour through a Technological Innovation System analysis

PV as casus

Page 8: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Government, policy, institutions

Supportive infrastructure (banks, innovation support offices, lobby organizations)

Research

education

industry market

Page 9: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Stabilisation

accelleration

Take-offPre-development Development

Functioning prototype?

Commercialapplication?

Fast Market growth?

Market saturation?

Thin Film

Wafer basedD

iffusi

on

Page 10: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Industrie Advies-busi-ness

Pub. onder-zoek & Univ.

HBO Financiele instelling

Inter-medi-airen

Electric.-leverancier

Vereniging, Vervoerder

Alleen Wafer-gebaseerd

43 NaN 0 NaN NaN NaN NaN NaN

Alleen Dunne-laag 15 NaN 8 NaN NaN NaN NaN NaN

Beiden 24 NaN 4 NaN NaN NaN NaN NaN

Overig/Totaal 47 23 5 5 6 8 4 7

10

30

50

70

90

110

130

Aanta

l acto

ren

Page 11: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Grondstof Machines Cel Module PV comp. Handel en installatie

Onder-houd

Recycling

Aantal Wafer 1 7.5 7.1 5 13.4 43.4 0.5 0.8

Aantal Dunne-laag 1.5 7 5 1.9 9 12.4 0.3 0.2

5.0

15.0

25.0

35.0

45.0

55.0

Aan

tal

Page 12: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Celproductie Module / inpassing Machines0%

20%

40%

60%

80%

100%

GaAs (dunne-laag)

Cu(In,Ga)Se (dunne-laag)

Amorf Silicium (dunne-laag)

Poly-kristallijn (wafer)

Mono-kristallijn (wafer)

Page 13: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Page 14: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Network 2006 vs 2010

Page 15: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Page 16: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Key processes / functions of TIS

F1 entrepreurial experimentation

F2 knowledge development

F3 knowledge exchange

F4 Guidance of the search

F5 Market formation

F6 resources mobilisation

F7 legitimacy creation

Page 17: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

ondernemersactiviteiten

kennisontwikkeling

kennisuitwisseling

richting gevenmarktontwikkeling

vrijmaken van middelen

legitimiteit

0.0

1.0

2.0

3.0

4.0

5.0

Page 18: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Page 19: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

What have we done so far?

• 7 PhD students• Mapping of the emergence and growth of many

TIS E.g. Biofuels, wind, PV, CHP, gasification

• Framework article + testing of framework• Review article: why does renewable energy

diffuse so slowly?• Developed process methodology• Developed theory on dynamics of TIS: motors of

innovation

Page 20: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

recently

• Study of actors strategies within TIS: system building, institutional theory

• Role of incumbent actors in blocking TIS

• Developed scheme of analysis for policy adviceWieczorek, A.J., Hekkert, M.P. (2012). Systemic instruments for systemic innovation problems: A framework for policy makers and innovation scholars. Science and Public Policy, 39(1), pp. 74-87

Page 21: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Scheme of analysis

Page 22: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Policy discourse

• Neo-liberal innovation policies Generic innovation subsidies Help to overcome market failure Innovation department of Economic Affairs

• Innovation policies in specific domains Energy, Transport, Water Goal oriented Much more specific policy intervention

• Specific R&D programs, launching customer, demonstration projects

Page 23: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Goal oriented policies

• Were in need of a guiding framework Many different stakeholders What is good policy when effects show up much

later?

• They stumbled upon the TIS framework

Page 24: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Why do they like TIS?

• Innovation process is complex but framework is simple

• Right language: system failure, motors not running, fixing, intervention

• Backed up by science – legitimate

Page 25: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

2008 First TIS policy project

• Quick scan of 20 TIS related to the energy transition

• Based on stakeholder workshops• Close cooperation with NEA• What factors are blocking the development of the

TIS to the next phase? product life cycle perspective

• 500 million euro + 3,5 billion in matching from industry

Page 26: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

2010 End of energy transition

• New government• More liberal policy• Transition policy had to go• Focus on national strengths

Top sector policy• Energy as top sector

• No more interest in TIS

Page 27: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

TIS survived

• NEA had to monitor the energy transition program

• The decided to collect data based on TIS framework

All projects All actors Actor networks Goals of the projects Project results

Page 28: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Training of NEA

• Help by designing structure of database• Train employees to understand the

concepts and the usefulness• Increase legitimacy in top of organization

by giving presentations, attending strategy meetings etc

Page 29: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Functioning of the Dutch Energy System - Actors

The right actors?International reputation?Role in value chain?

Enough Private Resources?% SME?

Regional clusters?

Source: Public-Private financed project plans of RVO.NL, NOW and Knowledge Institutions

Page 30: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Functioning of the Dutch Energy System – Collaboration

Building up an innovation system?

Do we see changes in network characteristics?

Source: Public-Private financed project plans of RVO.NL, NOW and Knowledge Institutions

For example: Network of BBE in 2012 and 2013

Page 31: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Functioning of the Dutch Energy System - Technology

Enough variation? Increase in Technology Readiness?

Accumulation in products?

Acceleration

Stabilisation

Take-offPre-development

Time

Mark

ets

hare

Stakeholders Suppliers Owners CustomersConcepts Components Products Applience

Business case?

Source: Public-Private financed project plans of RVO.NL

Page 32: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Innovation SensorA Dashboard for Portfolio Management

Identify potential value networks

Prioritize the most actractive value networks

Optimize the portfolio of Innovation Programs

Staf the Programs

Execute and monitor the Programs

Select the Innovation Prrograms

1

2

3

5

6

4

Doing the right things?Based on expectations of plan Bureaus and experts

Doing the things right?Based on facts and figures from projects

1

Map the innovation structure

2

Analyze the functioning

Review the functioning of the structureDecide on

less/moreResources for Programs

Staf the Programs

Execute the Programs

34

5

6

Helping the TopTeam to decide on….

….institutional change to empower the new economy

Page 33: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development

Final result

• TIS is now firmly embedded in Dutch energy policy domain…..

• …. as monitoring tool / framework• Tool to make sense of a lot of data

• Not only energy: also water, transport, agriculture

• Policy makers may not understand the framework but work with the outcome

• International expansion

Page 34: Copernicus Institute of Sustainable Development The virtue of Innovation Systems Analysis for policy makers and other stakeholders in the Energy Transition.

Copernicus Institute of Sustainable Development


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