Eco-innovation and Sustainability Management Bart Bossink BY Routledge R foutledaennovation and Sustainability 1.1 INTRODUCTION ‘This book presents a model of eeovinnovation and sustainability manage ‘ment, To researchers this model provides a coherent overview of the main tlements of the eco-innovation and sustainability management system, Ic proposes, evaluates and discusses relationships among, these elements The model helps managers to decide which actions to take to develop ceo linnovation and sustainability in commercial fms, not for eof organica ‘ons, nongovernmental organizations and governmental organizations, This book defines eco-innovation and sustainability management asthe evelopment of new initiatives in an oeganization to sustain, improve and renew the environmental, social and societal quality ofits business proseose and the products and services these husiness processes produce In this def nition, che measures and targets of environmental, social and societal ual lity can have various dimensions, such as educed pollution and limited use of natural resources; the provision of services not just to shareholders but to all stakeholders ofthe organization; and contributions o societal problems, including employment for the disabled and education for the untrained. In this book, che “sustainability” concepe covers this broad array of ists, ‘The model in this book introduces three basic managerial levels for écorinnovation and sustinabiliy: coideation, “cornnovation and co. insttutionalzation. Co-ideation is defined as the cooperation of individuals wo want to generate, develop and disseminate new sustainable ought, com cepts, plans and suggestions for business, Co-inniovation is defined 26 the ‘cooperation of individuals who are situated in commercial organizations and who want to transform new sustainable thoughts, concepts, plans and suggestions for business into new viable, profitable and working business proposals in industry. Co-insttutionalizaton i defined as the cooperation of individuals who are situated in commercial, not-for profit, nongovern mental and governmental organizations and who want to create structural stimoliand arrangements that enable these new viable, profitable and work ing business proposals to become important in industry. The three manage Hal levels serve as the framework for the theory-bulding studies in thisEco-innowsation and S tainabilty Mars book. This book addresses questions such as these: W ership do for eco-innovation and sustainability? What is the role of entre preneuts who invest and believe in eco-innovation and sustainability? What txactly can champions, that is the persons who walk and talk innovation all the time, do for eco-innovation and sustainability? The studies in this book also elaborate on the contributions of teams, the funetions of proj- fects. and project management, the embedding of teams and projects in fms fnd cooperation and partnerships among commercial firms, not-for profi Organizations, nongovernmental organizations and governmental organiza tions. It explores what these different forms of organization can do to im: prove ecological, social and societal quality. Finally, this book delves into the opportunities for people and organizations to institutionalize sustain able knovledge, revenies an achievements andl crea business that is eco-innovative and sustainable. It deals with the impact of markers, clients, customers, societal pressure groups, scientific and techno: logical pogress, and national policy and regulation. This introductory chapter presents the three basic managerial levels of the model of eco-innovation and sustainability management (Section 1.2) Te desribes the methodology that is used to develop and build this model (Section 1.3). Ie compares the model with «wo other established models in the literature ro put the characteristics into a bronder theoretical perspective (Section 1.4). Ieconcludes with a brief summary (Section 1.5}. scan personal lead- a powerful and large 1.2. THE ECO-NNOVATION AND SUSTAINABILITY MODEL As stated in the introduction, this section introduces the three basic levels at ‘which eco-innovation and sustainability management take place, The three levels are co-deation, eo-innovation and co-insttutionalization. Coopers tion isa key concept at ll three levels. Co-ideation stands forall cooper ative action of individeals to develop ideas with innovation potential in sustainability and that can be translated into effective solutions for business. Gorinnovation isthe cooperative activity of individuals in organizations t0 actualy translate the idess and solutions that originated at che co-ideation level into profitable businesses. Co-institutionalization isthe cooperative effort of public and private parties to integrate the succesful sustainable business proposals and businesses into the institutional environment and let the new emerging sustainable businesses grow into mature and widespread businesses with large impact on industry and sociey, The fis of thre starting points of this hook is tht eco- and sustainable innovation can be conceptualized asa linear process. The covideaion level for ecorinnovation and sistainabilry can be perceived as the start ofthe i novation process and that i followed by co-innovation and completed with corinsttationalization. Second, a the same tim, this linear process can also be seen as cyclical, in the sense that the near process goes on continuously,ind Sustainability 3 Pure 1.1. The eorinnovaton and sustainably system Fepeats itself over and over again and by this is a main driver of sustain: able ingovation and continuous improvement in organizations and society Third, the eco- and sustainable innovation process can also be seen as in terdependen, interactive and transformative which means that aspects OF ements of the different levels influence one another continuously, Ii plies that co-deation drives covinnovation and co-innovation deives eo insttutionaizaton but also that in addition co this, co-innovation also deives covideation and co-institutionalization drives eo-innovation. On top of this several innovation eyces ean occur at the same time and affect ome anothen Figure 1.1 visualizes the model of linear, eylic and interactive. cco and sustainable innovation through co-ideation, co-innovation and eo. institacionalization. The three managerial levels inthe system are symbolized by the dotted circles. The dotted circle inthe center eepresents the eorideation level. The surrounding dotted circle visualizes the co-innovation level. The ‘outer dotted circle represents the co-institutionaization level. The double headed arrows between the dotted circles visualize the linea, circular and interactive influence between these levels. The halls in the Figure, situated on the dotted ciccles, visualize the elements at each eve. The co-deation level consists of leaders, champions and entrepreneurs; the co-innovation level4 inability Managemen consists of teams, projects, businesses and public-private partnerships; and the co-nstcutionalization level consists of market and society, knowledge and technology, and policy and regulation. This section briefly introduces these elements. The next chapters inthis book are successively dedicated ne ofthese ten elements and delve into more details. The book concludes with a chapter that interprets the model asa whol Co-ideation Three distinctive individual roles or peesonal behaviors play @ pivotal role in thee trepreneurship, and the champion of championship, The leaders, enteepre- neurs and champions can be een as the main drivers of the ideation proces that is, the development of ideas to innovate in sustainability. They also drive the co-ideation process by cooperating with one another and with ‘other members oftheir organizations in order to share and further develo their thoughts and plans ton process: the leader or leadership, the entrepreneur o en Leaders Individual leadership directs a sustainable innovation team toward new creative ideas. To directa creative process the leader can choose from a repertoire of leadership styles and skills. A leader who wants to adopt a charismatic syle, for example can choose to energize colleagues to innovate and to have an accelerating effect om people's innovative activity (Murphy and Ensher, 2008; Paulsen, Maldonado, Callan and Ayoko, 2009). A leader can also be more oriented towaed formal management instruments and put an emphasis on a strce structuring and control of sustainable innovation activities of workers in che frm (Abernethy, Bouwens and Van Lent, 2010}. In addition, a leader who wants eo act more strategically can use his or het hierarchical power base to motivate force or direct reams to innovate in sustainability (Carmeli, Gelhard and Gefen, 2010). A leader can also choose to have frequent contact and cooperation with coworkers, A leader who like co interact with colleagues can choose to empower others eo innovate and to enable them to become sustainable innovation leaders themselves and help the oficial leader (Ceevani, Lindgren and Packendorf, 2010), Entrepreneurs Not just leadership alone fuels the ideation process. Its also the entrepe neur or individual with entrepreneurial sprit who contributes to ideation and co-ideation. The entrepreneur can be seen as a main force behind the ideation srategies and processes in organizations, The entrepreneur, for ex ample can take the initiative to develop new products and services and can he the one who is constantly looking for new ways to make mone. I is ‘often mentioned that he or she always sees where new opportunities to sell products arse, “smells” where the opportunities for new services are hiddenrnovation and Sustainability and starts projets and ventures to launch products and services and to open markets (Beveridge and Guy, 2005), It can be sad that the entprencue ial person is driven by the possibilities of successful innovation and is not scared by the risks of failure (Dixon and Clifford, 2007; Klein Woolthuiy 2009) In today’s business landscape, socially driven enteeprencurship seems tobe becoming a powerful alternative to gain strategic advantage, to mobi line resources, to raise the profile ofthe organizations involved and to gener- ate income in new and emerging markets (Di Domenico and Haugh, 2007) Champions AN third imporeant driver of the ideation and co-ideation process isthe in novation champion. Innovation champions are often sen asthe ceeative rivers of innovative ideas and initiatives, Am innovation champion, for ex ample, endorses innovation by persuading others to join a projec or, by means of a lobby, getting top management on board for an innovative vt ture. The champion of innovation talks innovation all the time (Kelley and Le, 2010), has the expertise 0 innovate and likes to generate kas (Sim, Giffin, Price and Vojak, 2007). The innovation champion processes infor ‘mation shar generates new ideas, traces and shares knowlege and looks for "he trends from which co derive new ideas (Coakes and Smith, 2007) In the literature, shese three types of individuals are judged to be the main rivers behind the ileation process of sustainable innovation. Cooperation among these three types and cooperation with other collesgucs inthe orga nization can contsibute tothe so-ideation proves in the fem, Co-innovation Four organizational forms play a crucial role in the co-innovation proces "he team, the project, the business and the public-private partnership, The work in and cooperation between individuals in teams, projects, businesses and public-private partnerships transform the ideas that originate at the co ideation level into new sustainable and profitable business proposals. They also bring the ideas to the next level the co-innovation level, where the ideas ca be realized Teams The leaders, entrepreneurs and champions of eco- and sustainable innova tion need to cooperate with others in organizational settings. They need an ‘organizational context; otherwise, their activities remain unnoticed. They, for example, needa team of generalists and specialists to adops thei ideas and develop these into new processes, products and services that actually ‘change and rejuvenate business, An idea that is promoted by a leades, at entrepreneurial person or an innovation champion often has to be devel ‘oped into something that can be made by the im. This implies that team of colleagues can be assigned by a company eo structurally and coherenty6 Eco-inmovation and Sustainability Management work on interesting ideas (Bjdrkman, 2004; Halsheger, Anderson and Sal: ‘ado, 2008). They can be asked to separate the creative ideas with market Potential from the ideas that will probably fil (Keatzen, Leenders and Van Engelen, 2006; Mathisen and Torsheim, 2006). Research indicates that an innovative team needs to be guided by a culture or spite thae supports the search for and discovery of practical ways to tar ideas ita something that can be made by the firm (Adarves-Yorno, Postmes and Haslam, 2007; Mar tinsuo, 2009) Projects Often, projects are used as a main organizational form to structure a com- pany’ fist attempe to develop a new innovative practice. A varied set of ‘management principles can be applied to coordinate and control sustain ably innovative activities in innovation projects. A project, for example, can start with a well-prepared project plan and use this as the base outline for planning actions, deadlines and deliverables (Dorenbosch, Van Engen and Verhagen, 2005; Dougherty, 2008). In addition to this, a project organiza tion ean also choose to plan the innovations step by step and to commit all participants to a collective schedule. The project can focus on agreements snd on monitoring progress from star to finish (Keegan and Turnet, 2002; Killen, Hunt and Kleinschmidt, 2008). Furthermore, the project organizay tion can develop a strategic view of what kind of newness it has to deliver to the world outside (Newell, Goussevskaia, Swan, Bresnen and Obembe, 2008). Ir can define and realize innovation goals tha fir with the strategy Of the firm (Kenney, 2003; Plambeck and Haylor, 2007). The innovation project is often used to develop innovations with which firms ean (regain a ‘competitive advantage in the marketplace. Fo this ics important that the project members listen to customer demand and use both customer and usee information to translate ideas into processes, products and services with ‘market potential (Beverland, 2005} Businesses The innovation teams and projects are mainly situated in firms. In addi- tion, firms often run more projets atthe same time and have portfolios of various co-innovative projects. In modern busines, i for team members to participate in several projects atthe same time, for projets to be links nko other projects. In many cases, different firms cooperate in innovation project, for example to share complementary knowledge, to serve larger markets or to gain power in the competitive field. Cooperative innovation among several frms, teams and projects is a complex organizational challenge. Co-innovating firms try t choose 2 new innovative direction and usually stare to explore the poss bilities for going it alone, When that is not posible companies that do not want to give up explore the opportunities to co-innovate with others (Dell Era and Verganti, 2009; Spthoven, Claryse and Knockaert, 2010 ‘and for projects to evolveEconinnon {Sal | They then have to negotiate about the resources each organization has to wcket_ | bring in and about the revenues cach will get in seturn when the inser Van tions become a commercial success (Nieto and Santamaria, 2007; Vuola and sean Hameri 2006). To organize the eo-innovative proces, they have to develop the innovation plans with one another and establish joint ventures in which that |—_thesc innovations are cooperatively developed, bile (Rampersad, Queees Mar and Troshani, 2010; Vuola and Hamer 2006) and sold (Calia, Guertin! and Moura, 2007; Van de Vrande, De Jong, Vanhaverbeke and De Roche mont, 2008), com | Public-Private Partnerships of Co-innovating firms often choose to experiment in a public-private part in nership before they really decide to enter the market with new proceso, ean products and services (Harborne and Hendry, 200%; Hendry, Hachorne and pfor | Brown, 2010). In pile, demonstration or joint public-private experonene and innovative sustainable options can be tested, developed and prepared for use za in regular business, Public-private partnerships enable governmental al all commercial oxganizations to experiment and gain experience with sustain eats able issues, technologies and co-innovative procedures and routines (Foxor, 02; Gross, Chase, Howes, Arnall and Anderson, 2005). Often the government ia subsidizes an eco-innovative demonstration project and wants to cooperate ver with commercial frms and help them to develop sustainable business, In se, recurm, the government wants companies to invest equally in che project “ for example by sweans of investments in terms of man-hours the snp of ton advanced knowledge and the inclusion of top managers Pub and peivate ma actors who want to sustain a longer-term relationship build public-private che Partnerships with clear and longerterm visions on sustainability, ofen we hhave some experience and knowledge with eco- and sustainable innovation sth and share the same ambitions, for example a desire to create an important new sustainable product or production process (Garvin and Bosto, 2008}, Publie-private partnerships can lat for many years and have a remarkable | influence onthe innovativeness of industry. Organizations that participate li | __in public-private partnerships develop new areas of competence the bald pot ‘of sustainability that can give them a competitive advantage ina sustamnable ice ‘market ofthe fature for ‘These four organizational forms are the main drivers of the innova- 9 tion process for sustainability. Cooperative linkages and tes among team, ire Projects, businesses and public-private partnerships contribute to the co the Jnnovation processes in and among organizations in industry Co-institutionalization Three business environmental forces play an important role at the co | _instutionalization level: market and society, knowledge and technology, and policy and regulation. Interaction among these business ex8 Ezo-innovation and Sustainability Management forces constitutes the co-institutional environment that enables commercial firms to grow their emerging sustainable businesses into mature ones wit lange impact on industry and soci Market and Society The business environment exercises considerable influence on organiza tions’ sustainable activities. I is often stated that firms innovate because the market wants them fo, In the past, firms’ strategies changed over the years because markets continuously exerted pressute on companies to innovate Due tothe emergence of new sustainabilty-aware customer groups that ask nd services, firms may startto for eco-innovative and sustainable products realize that sustainability may have a lot of market potential In business, some highly innovative companies star to invest in eco- and sustainable innovation and aim co open these emerging markets (Ozaki and Sevastya nova, 2011) Inthe meantime, governmental and commercial organizations have to deal with increasing pressure from society to contribute to the sol tion of ecological, social and societal problems. Dominant environmental sustainability issues that, for example, dominate societal discussions and pur pressure on companies to improve performance ae pollution and emis: ‘ion control, protection of welfare and human rights, and a desire for a bet ter word for present and future generations (Brunland and Khalid, 1987; Esty, Levy, Srebotnjak and De Sherbinin, 2005) Knowledge and Technology (Continous technological progress enables firms ro innovate and pushes customers to buy technological innovations. A technological capability tha stimlates companies’ innovativenes is thei capability to combine an re combine their existing knowledge repertoite with newly developed and ap. propriated knowledge. Companies with a (ee)comhination strategy know how to constantly introduce new and improved versions oftheir products and services. They constantly refresh and renew theie product and service lines with the newest sustainable gadgets, features and more fundamental changes in sustainability. Technological progress enables them tobe leading innovators in thir field of business. A company's capability to be on th front line and set trends ean motivate customers to follow and adapt the new products and services, Firms witha technology leadership strategy are often seen as major change agents in industry (Kunz and Warren, 2011), Policy and Regulation Another key element at the co-insittionalization levels policy and regula tion. Depending on the politcal climate, the government plans and executes environmental and sustainable policy and subsidizes, finds and regulates sustainably innovative initiatives and programs in the country. Governmen tal action can have consider that when the government funds an innovation project and demands a high se influence on industry. Research indicatesEconinnovation and Sustainability. 9 level of innovation in reuen, this indeed has a significant positive effect ‘on the project's innovativeness(Bjarnali and Gulbrandsen, 2010), National regulation can be a poweul institutional tool, Ie ean stimulate innovators and discourage laggards fom going on with unsustainable practices. Some times strict regulation can be necessary, for example, when emissions need to be reduced. In other cases, performance-based regulation, that i, regu tion that stimulates oxganizations to innovate in a certain direction with ‘out strictly defined norms and measures, appears to be more effective and challenges frms to develop theie own innovative solutions and approaches (Wagner and Llerena, 2011}, These three business environmental forces can have a major influence fn the eco-innovative and sustainable climate in industry and define the instiruional conditions for ccoinnovative and sustainable co-deation and co-innovation. Interaction between private firms and publie organizations shapes the industrial environment in which new co-innovative sustainable practices can become insitionalized. It sets boundaries for deviating prac tices and enables sustainable business to grow 13. RESEARCH METHODOLOGY The eco-innovation and sustainability model is based on extensive litera ture research and on widespread empirical research in Dutch industry The research approach of Van Aken (2003) 18 used as the basic methodology to develop the model. One of the basic principles of Van Aken's (2008) research methodology is that theoretical and empirical research can be con ducted ro construct a model, heuristic or theory that serves asa guideline or frame of reference for managers and that enables them to act and to man age practical setting, The aim ofthis book thus sto design a theory based and empirically grounded model ofthe process of eco-innovation and sus tainabilty in industry. The book aims to provide insights for practitioners into how eco- and sustainable innovation ean be controlled and managed To researchers the model aims to enable and guide further research into the workings of eco-innovation and sustainability systems. Inline with this, the research in this book consists of three interrelated steps, that is: (1) shaping the research model, (2) conducting additional theoretical and em pirical studies, and (3) analyzing and synthesizing the studies’ ourcomes tnt a coherent model, Step 1. Shaping the Research Model The research model is based on twenty years of theoretical and empirical research into cco-innovation management processes in the Dutch house building industry (Bossink, 2002, b,c, 2004, by 2007a,b; 2008; 200%, bs 2011, bs Bossnk and Brotwers, 1996). Previous publications inthis researchEco-inmoustion and S bility Management ory analyze and discuss the function of leaders (Bossink, 2004a 20112), entrepreneurs (Bossink, 2011a, b), champions {Bossink, 2004a; 20073; 20112), teams (Bossink, 2002b; 201a), projects (Bossink, 2002b; 20112: Bossink and Brouwers, 1996), businesses (Bossin, 201 a}, public-private partnerships (Bossink, 20028; 2007b; 2008; 201 fa), market and society (Bossnk, 2004; 201 1a), knowledge and nology (Bossi, 2004b; 201 1a) and policy and regulation (Bossink, 2004; 201 Ta) inthe eco and sustainable immovation system of Dutch house building. A synthesis ofthe elements into a coherent model that. ¢c0- and sustainable innovation system i published in Bossink (201 1a) (fora summary of some ofthe main conclusions of ths study se Appendix I). The model claims analytical value for research and practice in similar settings, thar is, the building industries and project-based industries, However, the ‘question remains whether and to what degree the mexlelc ality for industrial settings other chan the building industries and projec hased industries. Ths question isthe point of departure of this book (Van Aken, 2005). The book builds on the results fom the previ ‘us studies of Bossink, conducts additonal theoretical research in (eco and sustainable) innovation management literature and cartis out new explor atory empirical research in several other sectors of Dutch industry. Ie aims to design a model with increased analytical validity for industry in general sn claim analytical Step 2. Conducting Additional Theoretical and Empirical Studies Additional theoretical studies are conducted with respect to all elements of the model (covideation: leaders, entrepreneurs and champions; co-n novation: teams, projects, businesses and public-private partnerships; co insttutionalizaton: markets and society, Knowledge and technology, and policy and regulation). Literature databases are consulted for publications 6 ecological, green, social, societal and sustainable innovation in business and industry and foreach élement ofthe model. In addition to this, forall elements ofthe model, except forthe champions element, additional empiri cal studies are conducted, mainly by interviewing managers and expert in various industries in the Netherlands. Table 1.1 gives an overview of the new empirical material that is used in this book. All empirical research is conducted by master'sdegree students and supervised by the author of this book. The interviews are taken, recorded and analyzed by students in the master’-degree program in business adm istration at VU University Amsterdam. The interviews are based on open questions related to the main elements ofthe model of eo-innovation and sustainability. The interviewees are given maximum freedom to elaborate fm issues that relate tothe elements ofthe model. Ths facilitated in-depth conversations between researcher and interviewee The interviews are re corded, transcribed and either manually coded and analyzed or coded and analyzed withthe help of computer software (Atlas; MAXQDA; NVivo},Eco-innouston and Sustainability 11 # Exper interpreted and incrsews Industry Reporte by qored in chapter 6 orale Brockhoff 201), 0 Varios industries Klawer (2008) 6 Building Bossink (2011 10 Meral Van der Wil (2010) 8 Banking Verloop (2008 0 Varios industries Mabawat Khas (2010) in Food, De Bran (2009) x0 Various indostres Indian (2009) ° Food De Swaaf 2008) 10 Trae Roelotzen (2010) “The orginal reports can be obtained from the website bepsiwww.ub.vu.l Empirical interpretations and quotations inthis book are respectively based fom and taken from these reports, For readability, some quotations have been edited, but che original scope and content remain intact Seep 3. Analyzing and Synthesizing the Studies’ Outcomes {As a result ofthe additional theoretical and empirical studies all elements of Bossink’s (2011a) model are articulated, adjusted, complemented or changed, resulting in an model of eco-innovation and sustainability with increased analytical value for industry (sce Figure 1.1) 1.4 COMPARISON WITH OTHER APPROACHES To put the model of ecorinnovation and sustainability management into a broader theoretical perspective this section compares the model with two ‘other steams in the literature, The model will be compared with the na ‘ional environmental planning approach and the national systems of inno: vation stream, This comparison results in an overview of similarities and dlfferences. The section starts with a description of the basic aspects of the two alternative theoretical approaches and continues with the comparison. National Environmental Policy Planning, The frst approach to be summarized here is the national environmental poliey planning approach, In 2006, Kivimaa and Mickwiteintcoduced a co- herent model of systemic eco-innovation. Its derive from Finnish practiceb ation and Sustainability Management and claims analytical validity for other industrial countries, According to Kivimaa and Mickwitz (2006), sustainable innovation tars with the deve ‘opment of a general sustainable innovation plan forthe country as a whole, and this is made by officals from the authorities, universities and larger Firms. Once the plan is eompleted, the nation’s governmental and commer cial organizations can take the next step. They derive action plans from th hasie plans and can try to execute these. Kivimaa and Mickwrite (2006) de seribe and visualize environmental policy planning asa top-down proces. The basic sustainability plan is made on a central national level, and then all cooperating organizations are supposed to work according to the guide his plan Kivimaa and Mickwitz (2006) propose that this top-down, system of environmental policy planning consists of three basic level: pol icy strategies, policy instruments and policy outcomes. The frst basic level thus is policy strategies. On this level, che government takes responsibilty and leads the process. Representatives of the government, national insti tions, rescarch centers and commercial organizations strategically review environmental policies of the past. They use the insights thae result fro these reviews to develop a new environmental strategy for the nation, The environmental policy strategy initiates and influences a second level of the rational system, whichis labeled policy instruments. At this level, represen tatives from governmental, institutional, scientific and commercial organi- zations define several large national strategic environmental programs. The nvironmental programs consist of broad portfolios of envioamental nology and projects and comprigea coherent set of assigned enviran tal objectives and allocated financial and human resources. The programs initiate the third level ofthe = this level, both fundamental and more applied research and development (R&D) projects are planned and exccuted. Governmental, institutional scientific and commercial organizations cooperatively develop new innova: im, which is called policy outcomes. On tive environmental technologies and practices, These eco-echnologes and ‘practices then have to diffe to other firms in the nations industry: The impact of this top-down system of national envitonmental policy planning the stating point fora new na tionwide and top-down process of environmental policy planning. National Systems of Innovation “The second approach to he described here is the national systems of in novation approach. To a certain degree, the national systems of innovation approach is comparable with Kivimaa and Mickwvitz’s (2006) model of na tional environmental planning. Both build on the same types of ators, and both propose that cooperation among these actors directly stimulates in novation on a national level. According to Bartholomew (1997), one ofthe proponents of the national systems of innovation approach, the four basic actor types of a national innovation system areand Sustainability 13 institutions, educational institutions and industry. Lundval, Johnson, An dersen and Dalum (2002) draw a similar pictre, According to them, a na sional system of innovation consists of institutions, users and producers Bartholomew (1997) contends that research organizations and industrial firms form the center ofthe nation’s innovation system, and government and edncational organizations can be seen as satelites that can strengthen the research organizations’ and industrial firms’ function. The national innova: tion system concentrates primarily on the development of knowledge and the application of this knowledge in industry. Lunda, Johnson, Andersen ‘and Dalim (2002) present a similar point of view. They contend thatthe ‘coordination, cooperation and interactive learning process among agents of the institutions, wsers and producers forms a strong dynamic driver of na "onal innovativeness. According to Bartholomew (1997), the centers of the system are innovative because of the knowledge they possess and exploit The development of knowledge in the industrial firms, the fist center of the innovation system, is stimulated by the accumulation of technological knowledge in industrial sectors that are related and also by cooperation with other organizations in R&D and innovation ptojects. The develop ment of a body of knovledge in che nation’s research organizations, which isthe second center of the innovation system is supported by the research ‘center iternational contacts and working elationships wit foreign cou terparts, the nation’s tation of funding of basi research and the national practice of scientific education. Bartholomew: (1997) also mentions several ‘other factors that stimulate the flow of knowledge between the two centers ofthe countrywide improvement schemes the commercial orientation of re search institutions and thee collaboration with industrial rms, the mobility of labor in the county, the willingness of venture capitalists eo invest in in novative publie;private partnerships and a government that atively invests ina knowledge economy. Ecoinnovation and Sustainability Management in Perspective Table 1.2 gives a concise overview of differences and similarities between the model of eco-innovation and sustainability management in this book and the ewo alternative approaches inthe literature Te first row of Table 1.2 shows differences among all three approaches The innovation mechanism that forms the heart of che eco-innovation and sustainability model in this book is ofa managerial nature, Te supposes that -co-innovation and sustainability are something char can be planned, com- trolled, organized and coordinated and that they can be shaped, controled and developed by key individuals such as entepreneuts and project manag ers in commercial firms. This differs from the national envizonmental policy approach, which builds on the assumption that environmental innovation isa top-down policy planning process that is induced by the government. Ie also differs from the national systems of novation approach, which supposestion and Sustainability Management National crvironmental innovation management policy planning systems Tnnovation Man “Top-down policy Krowiedge fo mechanism process ndoced Planning process and leening by key individuals tnduced by th — and firms Innovation Cooperstion and Logical trvctue of Cooperation and Syma interaction ‘Hratepes, programs interaction and ations Innovating Professionals and Policymakers Knowle emity ‘ions wotkers Innovation Econnovation and Exo-ianovation Innovation in scope ‘sstanabilty the thar knowledge flow and learning processes among authorities, universities and firms are key innovation mechanism The second row of Table 1.2 shove a similarity between the model in thie book and the national systems of innovation approach and between the model in this book and he national environmental planning approach. A basie assumption ofthe mode of ecainnovation and sustai ability in this book is thatthe innovation process is linear, cyelic and inter active atthe same time. The main innovation dynamic is cooperation and interaction among actors, the organizations they represent and the insti tional structures wherein these organizations are situated. Ths differs from the national environmental policy planning approach. The main innova: tion dynamic behind the national environmental policy planning approach is chat eco-innovation starts with a national policy, which is teansformed into action plans and projects in practice, It assumes that the actions are logically derived from plans and that thse plans stem logically from pol ies, strategies and vision statements. Last, this book's eco-innovation and sustainability model and the national innovation systems approach have in ‘common that both build on cooperation and interaction among. actors a8 the main dynamic that drives the innovation process, The third row of Table 1.2 shows thae all models mention diferent s as drivers of innovation in the system. The eca-innovation and sustainability model in this book assumes that innovation thrives on the enthusiasm, drive, confidence, vision and hands-on mentality of profession alsin organizations. The national enviconmental policy planning approach ferenceFco-innovation and Sustainability 15 draws a somewhat different picture. The central innovation-driving actor ‘there isthe policymaker who write vision documents that are translated by ‘other officals into actionable programs and that are developed into prac cal projects by handvon practitioners. Finally, the national systems of in fovation approach models innovation as a process that is stimulated by knowledge workers in universities, laboratories and fms tht interactively develop, share and apply new knovledge and thereby innovate, Finally, che fourth row in Table 1.2 shows that the type_of innova- tion the model concentrates on is different forall three models, The eo innovation and sustainability management model in this book addresses ‘eco-innovation and sustainabiley, which comprise environmental innova tions, social innovations and societal innovations. Ie covers sustainable innovation in the broadest sense ofthe word or concept, The national en vironmental planning approach works with » more nafrow scope and con ‘entrateson environmental and ecological innovations. Finally, te national systems of innovation approach has the broadest view of all chee and con ‘entrates on innovation in general Ideals with all kinds of innovations and ‘doesnot specify the type of innovation, 1.5 SUMMARY Fco- and sustainable innovation needs to be managed at three coopera tive levels. Ar the Best, socalled co-ideation level, eaders, entrepreneurs and champions cooperatively develop the important new sustainably inno- vative ideas. At the second level, the co-innovative level, they cooperate and interact with one another and with other coworkers and professionals in organizational setings such as teams, projects, businesses and public private partnerships to actually transform these ideas into business. At the third level, the co-insiutionalizaton level, professionals from commercial, governmental and not-for profi and nongovernmental organizations coop- fate and interact to build institutional seuctures and arrangements that enable sustainable business to grove larg. This appeoach proposes tha eco innovation and sustainability originate fromkey individuals in organizations, ate realized by organizations and ate insttutonalized hy efforts to create an infrastructure that enables organizations to grow into major players in industry, Activites ar all three levels ofthe innovation system contribute t0 the process of eco- and sustainable innovation, “This book consises of rwelve chapters, of which this first chapter intro ‘doced the basic model. The next ten chapters consecutively present the ele ments ofthe co-ideation, co-innovation and co-intitutionalization levels of the model, The ewelth and final chapter concludes with a discussion ofthe ‘model asa whole, The next chapter delves into the first element atthe co ‘Weation level ofthe model, whichis leaders and leadership.