Gerhard WeissEFICEEC, BOKU Vienna
The governance of innovationNew financing mechanisms for forest
ecosystem services in Europe and their implications for forest governance
20.8.20042
The governance of innovation
New financing mechanisms for forest ecosystem services in Europe and their implications for forest governance
FAO, Rome, October 4-7, 2010
International Conference-Forum:Emerging Economic Mechanism: Implications for Forest-
Related Policies and Sector Governance
20.8.20043
Research background
• European Forest Institute Project Centre INNOFORCE (2001 - 2008) • European Forest Institute Central-East European Regional Office EFICEEC (since 2009) • Study on the Development and Marketing of Non-Market Forest Products and Services (FORVALUE) for EC DG AGRI (Mavsar et al. 2008) • COST Action E51 “Integrating Innovation and Development Policies for the Forest Sector”
Do not talk about „functions“ but …
• … ecosystem services (MEA) • … marketability (Ostrom et al. 1994; Merlo et al.
1996; Glück 2000; Mantau et al. 2001; Pettenella et al. 2007)
• … innovation (Rametsteiner et al. 2005; Slee
2006; Niskanen et al. 2007; Rametsteiner et al. 2010)
• … policy/governance (Buttoud 2002; Böcher 2008; Rametsteiner et al. 2010; Weiss et al. 2011)
Limited marketability of forest ecosystem services
Mantau et al. 2001
Innovation systems: actors and institutions
Rametsteiner et al. 2005
0 4 6 8 10 12 Ministry: Section Forestry
Ministry: Section rural development
University: forestry departments
Federal Forest Research Institution
Chamber / interest group (small forest holdings)
I nterest group: large forests
Foresters
Federal Govt. I nstitutions
Innovation processes
Three dimensions: • information flows, • cooperation of actors, • financing.
Rametsteiner et al. 2005; Weiss et al. 2011)
Types of financing mechanisms
Examples (PUBLIC – or MIXED):
Taxes – or Conservation Banks
Examples (PUBLIC – or MIXED):
Subsidies – or contracts
Examples (MIXED):
New markets - Carbon trade
Examples (PURE PRIVATE):
Trade with forest goods
Examples (PURE PRIVATE):
Spiritual or cultural services
Examples (PURE PRIVATE):
Eco-sponsoring, donations, gifts, certification
Use of financing mechanisms in EU(government answers)
Conclusions from an innovation system perspective
Ecosystem services are hardly seen as a business field by forest owners and by governments:
• Forest owners fight off social demands instead of developing entrepreneurial offers
• Systematic knowledge base and data lacking• Easier to talk about innovations regarding wood
than regarding other ecosystem services
Conclusions from an innovation system perspective ctd.
Gaps in policy: • Comprehensive innovation policies are lacking for the
forest sector• Innovation is seen important by policy-makers and
documents but innovation support measures are rare • Lack of cross-sectoral coordination • Forest sector is hardly connected to the NIS• Sector focuses on traditional products and neglects new
business opportunities
Changing role of governance
The traditional division of state and market spheres increasingly breaks up and leads to a paradoxical development:
• Trend to involve private actors in governance, e.g. through market-based instruments,
• … but there are new roles for governmental / institutional actors!
Policy action is needed regarding public AND private mechanisms
Public mechanisms:• Further develop public or mixed
instruments (PES, new markets,…)Private mechanisms:• Support private sector in order to use and
develop new products or services
Systemic innovation support
Three dimensions for action:• to intensify the information on new market
opportunities, • establish cross-sectoral bridges, • and to provide innovation-oriented
incentives (seed money; LEADER approach; etc.).
thank you
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