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Achieving eco-innovation of SMEs through Asia-Europe cooperation
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ASEM SMEs
Eco-innovation Center
Achieving eco-innovation of SMEs through
Asia-Europe cooperation
ASEIC
ASEIC
: ASEM SMEs Eco-Innovation Center
The ASEM SMEs Eco-Innovation Center (ASEIC) was established with a principle
mandate of promoting Asia-Europe cooperation to create and enhance eco-
innovation of small and medium sized enterprises (SMEs) in both regions. Having
agreed upon the importance of SMEs as the main engines of innovation and growth,
Asia-Europe Meeting(ASEM) member countries have joined together to create
ASEIC as an international platform where the value of eco-innovation is shared and
new business opportunities are created.
3 ASEM SMEs Eco-innovation Center, ASEIM
History
7th ASEM Summit
Beijing,
China
ASEM Forum on
Green Growth
and SMEs
Seoul,
South Korea
8th ASEM Summit
Brussels,
Belgium
ASEIC
launched
9th ASEM Summit
Vientiane,
Laos
10th ASEM Summit
Milan,
Italy
2008 2010 2011 2012
2014
The 2010 ASEM Forum on Green Growth and SMEs was endorsed as an ofcial project at the 7th ASEM
Summit (October 2008) in Beijing. Hosted by the Ministry of Foreign Affairs and Trade (MOFAT) and Small
and Medium Business Administration (SMBA) of the Republic of Korea, the Forum was an international
meeting aimed at exchanging information and experiences among ASEM members as a way to better
assess the roles of SMEs in promoting emerging green growth opportunities.
At the end of 2010, ASEM Forum on Green Growth and SMEs, a joint statement of the ASEM Forum
2010 on Green Growth and SMEs - which was drafted by SMBA and modied by a Steering Committee,
composed of the representatives from Denmark, Germany, Spain, Sweden, China, Indonesia, Portugal
and the Republic of Korea - was released in an effort to support the establishment of ASEIC. In the forum,
sixty representatives from ASEM member counntries afrmed the need and urgency to take specic
cooperative measures to leverage the capacity of the SMEs, as the main engine of innovation and as the
primary employers, to facilitate Asia and Eurpoes common and mutually supportive progress on the path
towards low-carbon green growth.
They agreed to launch a working group in order to identify and discuss such actions in a more concrete
and detailed manner. Following the agreement, leaders from ASEM member countries ofcially endorsed
the establishment of ASEIC at the 8th ASEM Summit, which was held at Brussels, Belgium.
4 ASEM SMEs Eco-innovation Center, ASEIM
There are different denitions of eco-innovation.
Eco-innovation is dened by the European Commission (2012) as any form of innovation aiming at
signicant and demonstrable porgress towards the goal of sustainable development, through reducing
impacts on the environment or achieving a more efcient and responsible use of resources including
both intended and unintended environmental effects from innovation as well as not only environmental
technology but processes, systems and services. European Commission
In addition, the Eco-Innovation Observatory (EIO), a three-year initiative nanced by the European
Commission, briey characterized eco-innovation as: any innovation that reduces the use of natural
resources and decreases the release of harmful substances across the whole life-cycle. EOIs denition
went beyond the traditional notion of innovating to reduce negative environmental effects; it also
encompasses the ways and methods of minimizing the use of natural resources in the design, production,
use, re-use and recycling of products and materials. Eco-Innovation Observatory (EIO)
According to the Organisation for Economic Co-operation and Development (OECD), what makes eco-
innovation distinct from any other types of innovation is that it results in the mitigation of environmental
impact, whether the effect is intended or not. Furthermore, its scope may transcend the traditional
structural limitations of the innovating organization, thus involving broader social arrangements that
could spur socio-cultural and institutional changes. Organisation for Economic Co-operation and Development
Any form of innovation that reduces the impact on environment
Eco-innovation is an important element of sustainable development
*
Source: SUSTINVEST
Key History of Eco-Innovation
5thow
Emphasis on the role of eco-innovation in developing countries
and small& medium enterprises (SMEs)
4thow
Introduction of emphasis on non-technological eco-innovation
(Systemic and Radical eco-innovation)
3rdow
Eco-innovation as a key resolution for Green Growth
& Sustainable Development
2ndFlow
Renement of eco-innovation concept
1st ow
Eco-innovation focused on
use of green technologies
1994
[Programme]
National Cleaner
Production Centeres
/ Programmes
: UNEP-UNIDO
1970-1999 2000-2007 2009 2009-2010 2011 2012 2013
1996
Eco-Innovation concept
rst introduced by
Claude Fussler et al.
2004
[Establishment]
ETAP Environmental
Technologies Action Plan
: European Commission
2007
[Project] MEI (Measuring
Eco-Innovation):
European Commission
2006
[Forum] European
Forum on Eco-Innovation
2008
[Forum]
Emerging Technologies
for Eco-Innovation:
Opportunities and Risks:
ETAP
2008
[Establishment] Eco-
Innovation Observatory
(EIO)
2008
[Project] Eco-Innovation
Measurement Indicators
Study by UNU-MERIT
2008~2013
[Initiative]
Competitiveness and
Innovation Eco-
Innovation
2008
[Project] Green Growth
and Eco-Innovation:
OECD
2009
[Project]
Sustainable
manufacturing and eco-
innovation: OECD
2010
[Establishment] ERA-Net
(European Research
Area) ECO-INNOVERA
2009
[Forum] Financing the
Eco-Innovators
2010
[Index] Eco-Innovation
Scoreboard: EIO
2009
[Forum] OECD Global
Forum on Environment
&Eco-Innovation
2010
[Report] OECD
Eco-Innovation in
industry enabling green
growth
2010
[Report] Enhancing
Developing Countries
Access to Eco-Innovation
2011
[Forum] Working with
emerging economies for
green growth
2012
[Project] RECP Eco-
innovation in Developing
and Transitional
Economies project:
UNEP
2011
[Forum] International
conference promoting
eco-innovation: policies &
opportunities, Israel July
2012
[Index] 1st ASEM Eco-
Innovation Index
2011
[Initiative] ASEM Eco-
Innovation Consulting
Project for SMEs &
Inclusive Eco-Innovation
Programme 2012
[Report] Eco-innovation
opportunities for
European SMEs in
emerging markets
2012
[Report] OECD Green
Transformation of Small
Businesses
2011
[Establishment]
Eco-Innovation Action
Plan (EcoAP): European
Commission
2011
[Establishment] ASEM
SMEs Eco-Innovation
Center
2011
[Report] OECD Better
policies to support Eco-
Innovation
2012
[Workshop] The Future
of Eco-Innovation - The
Role of Business Models
in Green Transformation
: OECD, European
Commission, Nordic
Innovation
2013
[Report] OECD
Why New Business
Models for Green Growth
2013
[Index] 2nd ASEM Eco-
Innovation Index
2013
[Report] EIOs guide to
eco-innovation for SMEs
& business coaches
2013
[Report] OECD Fostering
Innovation for Green
Growth
2013
[Forum] The EcoAP
forum, 15th Forum on
Eco-Innovation,
Vietnam 12-13 Nov
2013
[Report] UNIDO
Green Growth: from
labour to resource
productivity
2012
[Report]
World Bank
Green Growth,
Technology & Innovation
Eco-Innovation
5 ASEM SMEs Eco-innovation Center, ASEIM
Eco-innovation & SMEs
In Europe,
SMEs represent 99% of all businesses,
providing jobs to more than
100 million people
In Asia,
SMEs constitute the lifeblood
of many industries
as they grapple with the present global economic crisis
Eco-innovation offers SMEs a huge opportunity to save costs, expand to new markets, create new jobs
and reduce pressure on the environment, thus bridging the gap between maximizing commercial prot
and minimizing negative environmental impact. Beyond boosting a companys corporate image and
prots, riding the tide of eco-innovation enables SMEs to maintain a high level of legitimacy given the
emergence of an array of environmental rules and regulations imposed by governments and international
organizations.
Eco-innovation is still a new phenomenon, yet it is expanding quickly across many countries. The greatest
challenge facing governments is trying to create an enabling environment that allows SMEs to easily
explore and pursue their innovative ideas despite the risks The most common barriers are the lack of
access to nance or venture capital, inadequate information, poor business management skills and
the protection o f intellectual property rights. Overcoming these hurdles can empower green SMEs to
contribute signicantly in reviving the global economy while securing a sustainable future for everyone.
6 ASEM SMEs Eco-innovation Center, ASEIM
ASEM Eco-innovation Consulting
Eco-innovation consulting services will raise awareness of the fact that
considering environment in their businesses is not costly but rather cost-effective
in the long term
SMEs face barriers and challenges such as lack of nance, information and technology, all of which
impede initiative-taking in eco-innovation. Moreover, they lack information about their resource efciency
potential.
In this vein, the ASEM SMEs Eco-Innovation Center (ASEIC) provides Eco-Innovation Consulting services
for SMEs in ASEM member countries. Experts from ASEM member countries will examine such businesses
within an environmentally benecial and economically viable framework. In doing so, they will help SMEs
develop comprehensive strategies and measurable action plans.
Eco-innovation consulting services will raise awareness of the fact that considering environment in their
businesses is not costly but rather cost-effective in the long term.
The main goal of ASEM Eco-innovation Consulting is to encourage SMEs to incorporate innovation into
their strategies. It would strengthen the green competitiveness of SMEs by disseminating and utilizing
green management and technology in their various businesses. The consulting services would provide
SMEs opportunities to apply a holistic and multifaceted approach to foster eco-innovation.
Greening SMEs
7 ASEM SMEs Eco-innovation Center, ASEIM
Eco-innovation consulting
outcomes
> Environmental regulation
compliance
> Pollution prevention
> GHG emissions reduction
Performing
a diagnostic study
Providing customized
technical assistance
and expert recommendations
Workshops
and seminars
Eco-innovation
consulting
Social
Economic
Environmental
> Awareness of eco-innovation
and environmental
responsibility
> Networking among
participating SMEs
> Reduction in production
costs from energy &
resource efciency
> New source of prot from
green marketing &
green business
8 ASEM SMEs Eco-innovation Center, ASEIM
> nclusive Growth: broad-based growth,shared growth, and pro-poor growth.
ASEM Inclusive
Eco Innovation Program
Inclusive Green Growth for local community
through appropriate technology and green eco-preneurship
Rapid and sustained poverty reduction requires inclusive growth that allows
people to contribute to and benet from economic growth. Inclusive green growth
is the pathway to sustainable development and it the way to reconcile the rapid
growth required to bring developing countries to the level of prosperity to which
they aspire, meet the needs of the more than 1 billion people still living in poverty,
and fulll the global imperative of a better environment. World Bank Group
ASEIC in partnership with Global Green Growth Institute (GGGI) has developed a pilot thematic joint project
which aims to produce immediate and tangible impact towards Cambodias achievement of sustained high
economic growth and sustainable development.
It integrates the social, economic and environmental dimensions of sustainable development through
appropriate technology transfer specically tailored to the actual needs of local people and designed
to suit the local conditions of the rural community. The project offers capacity building and institutional
strengthening program which will accelerate entrepreneurship to bring the technology to the markets
in Cambodia and help potential SMEs to develop sustainable business models to create jobs and values.
> Transfer technologies
> Create local business and jobs
> Reduce consumption fuel wood
> Develop alternative energy sources
> Encourage local entrepreneurship
> Reduce health risk
> Capacity building
Economic Benets Environmental Benet Social Benets
9 ASEM SMEs Eco-innovation Center, ASEIM
Appropriate Technology Transferring
Agricultural Product Drier
(solar air-heating system
+ incinerator)
Appropriate
technology Center
Solar home system Incinerator Solar Cooker
Green Eco-preneurship Accelerated Program(GEAP) is a business accelerating program catering to train
prospective Eco-preneurs in Cambodia.
Capacity building on entrepreneurship
GEAP(Green Eco-preneurship Accelerated Program) is a business accelerating program catering to train
prospective Eco-preneurs in Cambodia. GEAP provides appropriate entrepreneurship training including
application of eco-innovation concept and a holistic range of services from changing the mind-set to
producing a practical business model with a start-up capacity to the local youth.
10 ASEM SMEs Eco-innovation Center, ASEIM
ASEM Eco-Innovation Index (ASEI)
Measuring Sustainable Future for Asia and Europe
To help policy makers learn about the national performance of eco-innovators and the conditions for eco-
innovation, ASEIC has developed an eco-innovation index. The basic idea behind the index is learning by
comparing.
The primary goal of ASEI is to help countries/people understand where their eco-innovation stands
by providing fundamental data and information on eco-innovation, as well as to help realize their eco-
innovation potential and develop eco-innovation strategies.
ASEI expects to promote eco-innovation at regional and global level creating an active stage of
communication between Europe and Asia, and as a result, encourage governments to enhance their eco-
innovation related policies and regulations. ASEI expects to promote eco-innovation at regional and global
level creating an active stage of communication between Europe and Asia, and as a result, encourage
governments to enhance their eco-innovation related policies and regulations.
Keynotes of ASEI
To implement and promote eco-innovation better, one should rst know
and accurately understand the current situation: where progress is fast and slow.
Focusing on analyzing the
capacity and potential of eco-
innovation of ASEM member
countries, the ASEI framework
includes indicators that reect
countrys general innovation
potential and economic
competitiveness
Embracing diverse national
trends, strategies and
programmes, thus offering
a chance for mutual
understanding
Evaluating governments
efforts to promote eco-
innovation and enhance
overall environmental
competitiveness of companies,
industries and the economy
11 ASEM SMEs Eco-innovation Center, ASEIM
Eco-innovation capacity aims to capture the countrys mental attitude towards eco-
innovation, to examine the potential each country including developing country carry, to
implement eco-innovation.
Eco-innovation supporting environment aims to see the foundation of the institutional
framework to trigger and support eco-innovation activities.
Eco-innovation activities focuses on the contribution of rms towards eco-innovation such
as green patenting and commercialization of green technology, that can affect industries and
economic activities at a national level.
Eco-innovation Performance measures the national economic, social and environmental
outcome that eco-innovation can bring in long term.
Analysis Framework
Target Countries
Y2012 Target Countries Austria, Belgium, China,
Denmark, France, Germany, India, Indonesia, Italy, Japan,
Korea, Malaysia, Sweden, Thailand, UK
Y2012 : 15 countries
Y2013 : 25 countries (TBC)
Y2014 : 49 countries (TBC)
12 ASEM SMEs Eco-innovation Center, ASEIM
ASEM Global Forum
As an international platform, ASEIC aims to hold international conferences designed to exchange the best
policy and practices of SMEs in ASEM member countries.
Partners
ASIA-EUROPE ENVforum
ASEIC is in partnership with ENVforum from 2012. The Asia-Europe Environment Forum (ENVforum)
established in 2003, with the emphasis on further deepening inter-regional cooperation between Asia
and Europe to promote sustainable development and environmental awareness. Serving as an inter-
regional consultation platform, the ENVforum will contribute to facilitate the international dialogue on
sustainable development and the formulation process of sustainable development goals. The ENVforum is
in cooperation with Asia-Europe Foundation(ASEF); ASEM SMEs Eco-Innovation Center(ASEIC), Swedish
International Development Agency(Sida); Hanns Seidel Foundation Indonesia (HSF); Institute for Global
Environmental Strategies (IGES)
Facilitating concrete discussion among governments, international
organizations and businesses, ASEM Global Forum will provide SMEs with valuable
pportunities to promote eco-innovation in Asia and Europe.
Sharing experiences and knowledge
13 ASEM SMEs Eco-innovation Center, ASEIM
ASEICs Way Forward
2011-2012
Establishing partnerships and
launching pilot projects
For the rst two years from March 2011 until the end of 2012, with full nancial support amounting to KRW
2 billion from the Small and Medium Business Administration (SMBA) of the Republic of Korea, ASEIC will
focus on establishing partnerships with ASEM member countries and implementing pilot projects, such as
offering environmental consulting services, establishing a database, etc. ASEIC will evaluate pilot projects
conducted every year and receive feedback from participants and member countries.
2015 and beyond
Stabilizing and
scaling-up the organization
At this stage, ASEIC will exchange expertise and best practices, enabling
the organization to be a platform for SMEs in ASEM member countries,
where environmental regulations and eco-innovation in technologies
are shared and new business opportunities are created.
2013-2014
Specifying and
expanding programmes
After reviewing and analyzing feedback from member countries regarding the pilot
projects, ASEIC will modify and strengthen key activities to meet the needs of member
countries, while securing additional funding to be a nancially independent entity.
14 ASEM SMEs Eco-innovation Center, ASEIM
Eco-innovation &
Sustainable Development
Eco-innovation contributes to sustainable development by reducing the negative
impact of resource use and pollution, by generating jobs and income and by creating
changes in our mindsets and social behaviors
*Porritt, J. (2007). Capitalismasiftheworldmatters,Earthscan,revisededition,London.
Sustainable development is a dynamic process which enables all people to
realize their potential and to improve their quality of life in ways which simultaneously
protect and enhance the Earths life-support systems*
SMEs
Institution
Resource efciency,
Recycling,
Waste management
Society Economy
Environment
Sustainable
Deveolpment
Eco-innovation
SMEs
Institution
Resource efciency,
Recycling,
Waste management
Society Economy
Environment
Sustainable
Deveolpment
Eco-innovation
SMEs
Institution
Resource efciency,
Recycling,
Waste management
Society Economy
Environment
Sustainable
Deveolpment
Eco-innovation
Achieving eco-innovation of SMEs through Asia-Europe cooperation
ASEIC