Bringing forth Global Sustainability Innovation through Collaboration between Academia,

Industry, and the Public Sector

YARIME Masaru Graduate Program in Sustainability Science (GPSS)

Graduate School of Frontier Sciences University of Tokyo

yarime@k.u-tokyo.ac.jp

Session on Sustainability Innovation International Conference on Sustainability Science (ICSS) Asia 2011

Vietnam National University, Hanoi, Vietnam, March 2-4, 2011

How Sustainability Science is Different from Others

• Systemic aspects – Many issues are connected and interdependent, e.g.

climate change and biodiversity – Requiring systemic understanding and interventions

• Long-term time framework – Impacts and influences in the future – Dynamic process of change – Equity of different generations

• Action-oriented – Implementing knowledge for actions to address the

pressing sustainability challenges our societies face 2

Critical Role of Innovation towards Sustainability

• Stern Review on the Economics of Climate Change (2007)

• Accelerating technological innovation as a key component of policies to deliver timely, effective and economically efficient climate change mitigation

3

Understanding Innovation: From Individual Attributes to Systemic Characters

• Importance of Innovation in Economic Development – Schumpeter Mark I in the 1930s and Schumpeter Mark II in the 40s

• Market Concentration, Firm Size – Industrial Economics in the 1950s and 60s

• R&D Organization and Strategy – Rosenberg, 1976; Mowery, 1981; Freeman, 1982; Rosenberg, 1982; Dosi,

1984; 1988; Kodama, 1991; Rosenberg, 1994; Kodama, 1995 • National Innovation Systems

– Freeman, 1987; Lundvall, 1992; Nelson, 1993; Carlsson, 1995; Edquist, 1997; Goto and Odagiri, 1997

• Network of Universities, Firms, and Public Research Institutes – Powell, Koput, and Smith-Doerr, 1996; Owen-Smith, Riccaboni, Pammolli,

and Powell, 2002; Owen-Smith and Powell, 2004

Innovation for Sustainability

• Sustainability Science and Innovation Studies • Separate communities with different academic

backgrounds and approaches • Emphasis on systemic and dynamic characters • Need to integrate the two fields for

understanding the governance of innovation towards sustainability

5

Aspects of Innovation Systems

• Structure • Functions • Dynamics

Structural Components of Innovation Systems

• Knowledge domain (issue specificity) – Environmental protection, public health, food

security, poverty,

• Actors involved – Universities, public research institutes, private

companies, policy makers,

• Institutions – Norms, customs, established practices, rules,

laws/regulations, standards,

Functions of Innovation Systems • Knowledge development and diffusion

– R&D • Influence on search direction

– Understanding of social needs • Niche experimentation

– Promotion of Entrepreneurship • Market formation

– Establishment of Robust Business Models • Legitimization

– Social acceptance • Resource mobilization

– Human resources – Financial channels

(cf. Bergek, Jacobsson, Carlsson, Lindmark, and Rickne, 2008)

8

Functional Approaches to Innovation Systems

• Tend to be static, not a dynamic analysis • How to understand linkages/causalities

between different functions? • Case study of the technological innovation

system of membrane bioreactors (MBRs) in China (Xu, Yarime, and Onuki, 2010)

Sustainability Innovation as a Social Process of Knowledge Transformation • Emergence of a phenomenon

– Coupled natural-social systems, natural sciences and social sciences • Recognition of the issue

– Reporting in the media, discourse analysis • Scientific research conducted at universities and research institutes

– Behavior of scientists with incentives, sociology and economics of science • Technological development and production

– Technological development, engineering – Behavior of private firms with incentives, economics of technological change

and innovation studies • Impacts in society

– Assessment of environmental protection and safety, energy/materials flow analysis and life cycle assessment (LCA)

• Feedbacks from society – Reactions of various actors, STS

Nonlinear processes of multiple channels of feedbacks

(Yarime, 2011)

Expansion of the Missions of Academia

Teaching University

Research University

Entrepreneurial University

Preservation and dissemination of knowledge

First academic revolution

Second academic revolution

New mission of teaching, generating conflict of interest controversies

Two missions: teaching and research

Third mission: economic and social development; traditional missions continued

Etzkowitz (2003) 11

Functions of Industry-Academy Collaboration

• Scientific and technological knowledge – Can increase the efficiency of applied R&D in industry

by guiding research towards more fruitful directions • Prototypes for new products and processes • Equipment and instrumentation

– Used by firms in their production processes or their research

• Skills/Human capital – Embodied in students and faculty members

• Capacity for scientific and technological problem-solving

• Networks of scientists and engineers and users 12

Forms of Industry-Academia Collaboration

• Academic Society/Association – Exchange and dissemination of the findings of

basic research

• Bilateral Research Collaboration – Technological development

• Platform for Stakeholder Collaboration – Societal experimentation for innovation towards

sustainability

13

Cases of Innovation through Societal Collaboration between Academia, Industry, and the Public Sector

• Photocatalysts (Baba, Yarime, and Shichijo, 2010)

• Lead-Free Solders (Yarime, 2010) • Anti-Malaria Mosquito Nets • Electric Vehicles based on Secondary Batteries • Sustainable city project addressing the two

critical issues of climate change and aging society in Kashiwa

Exploratory Coupling of New Materials and Applications

Application

Application

Application Application

Application

Application

Importance of networks effectively coupling novel functions based on advanced scientific knowledge with diverse

applications for economic/social needs

Application New

Materials

Novel Functions

Commercial Applications of Titanium Dioxide (TiO2) Photocatalyst

Anti-Bacterial Ceramic Tile

Anti-Fogging Window Glass

Self-Cleaning Building Materials

Cleaning of Air/Water/Soil

TiO2 Photocatalyst

• Decomposition of organic compounds • Superhydrophilicity

Network Structure of Collaboration on Photocatalysts in Japan (2002)

Network of Collaboration on Photocatalysts in Japan (2002)

Formation of Networks for New Applications of Photocatalysts for Environmental Protection

Application Industry University/Public Institutes

Cleaning of Agricultural Wastewater

Seiwa Industry (filter), Ube-Nitto Chemical

Kanagawa Agricultural Research Institute, Kanagawa Academy of Science and Technology

Cooling System for Buildings

Izumi, Taiyo Industry (tent), Matsushita Electric (roof), Nippon Sheet Glass, JFE (steel), YKK (aluminum panel), TOTO (coating)

New Energy Development Organization (NEDO)

Cleaning of Contaminated Soil

Nichiei Industry Kimitsu City Government, University of Tokyo

Deodorization of Farms

Izumi University of Tokyo

Network Structure of Collaboration on Lead-Free Solders in Japan (2004)

Red: Firm

Blue: University

Green: Public Institute Yarime (2010)

Global Co-evolution of Technology and Institution for Innovation on Lead-Free Solders

Proposals of Legislation on Lead-Containing Solders Formation of University-

Industry Networks and Creation of Roadmap

United States Japan Europe

Environmental Policy on Phase-out of Lead-

Containing Solders

Commercialization of Lead-Free Products

Formation of University-Industry Networks

Formation of University-Industry Networks

Formation of International Networks and Establishment of World Roadmap on the Development and Introduction of Lead-Free Solders

Introduction of Policies for Phase-Out of Lead-Containing Solders in Other Countries

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Characteristics of Knowledge and Forms of University-Industry Collaboration

Knowledge Characteristics

Uniform

Exploratory Foundational

Concentration

• Foundational knowledge

• Sharing and coordination of knowledge

• Support for standardization and evaluation of new knowledge

• Exploratory Knowledge

• Diversification of knowledge, competition

• Support for application for social purposes (health, environmental protection)

Photocatalysts

Lead-Free Solders

Collaboration Form

Development and Diffusion of Mosquito Nets for Preventing Malaria

Ito (2009) Olyset Net of Sumitomo Chemical 23

Corporate Strategy for Research and Development and Production on Mosquito Nets

• Coordination between different divisions for research and development – Divisions of polymers and pesticides

• Long-term support within the company – Demands for products creating societal values might

not be large or stable at an initial stage. • Low production cost in developing countries

– Creation of jobs in local communities • Transfer of technologies to local firms

– Favorable conditions on intellectual property rights • Direct connection to firm’s core business

– Long-term expertise on polymers and pesticides

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Adoption and Use of Products at Local Communities

• Critically important to understand how local people actually behave and use the product

• Implementation of education and information provision to users

• Establishment of appropriate systems for product distribution, maintenance service and recycling of used products

• From top-down approach to introducing products to bottom-up approach with community participation

• Improved efficiency in information sharing, monitoring, and feedback for further improvement

25

Collaboration with Stakeholders

• University and research institutes – Collection of data and information on the location of

diseases such as malaria – Evaluation of the effectiveness of anti-malaria nets actually

used in local conditions • Public sectors, including governments and

international organizations (WHO, UNICEF) – Ensuring long-term, sustained demands for products – Reliable and credible information on technologies – Providing legitimacy and neutrality

• Non-governmental organizations – Delivery and recycling of mosquito nets – Sharing and disseminating information – Establishment of networks of relevant actors at local

communities 26

Nutrition Improvement Project in Ghana by Ajinomoto

MOH

Mothers

Social Entrepreneur

Permission to new business

¥ ¥

Ajinomoto

University of Ghana

MDG project

・Collaborative development of baby food ・Research data

・Nutritious baby food ・Education

・Business-friendly environment ・Reliability

Research resource

International Nutrition

Foundation

・ Local Network ・ Research data ・Contribution to MDGs

¥

Reports

Research requests

NGO or

Social company

NGO or

Aid organization GHS

CHPS

・Community Health nurse ・Health Extension worker ・Health volunteer

Gov. Health Service System

・MDG contribution ・Education program

Education program

¥

Nutritious baby food

・Nutritious baby food ・Education

Cooperation

¥

¥

27

Case of Collaboration between University, Private Company, and NGOs in Africa

Suzuki (2011)

Inclusive Business Initiatives for Innovation

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Company Name

Category of Industry* Project Description MDG Contributions

SONY Electric Appliances

Public viewing in Africa with HIV/AIDS campaigns.

Preventing HIV/AIDS expansion.

MITSUI Wholesale Trade

Agricultural support utilizing photovoltaic generation in Mozambique

Reducing poverty by increasing agricultural productivity.

YAMAHA MOTOR

Transportation Equipment

Purification of dirty water by Clean Water System

Increasing population with sustainable access to safe drinking water.

Panasonic Electric Appliances

Multiuse innovation container for areas without electricity

Improving the quality of life of the poor with better educational conditions.

SANYO Electric Appliances

Small solar lantern business Mitigating CO2 emission by clean technology, Creating job opportunities.

SOMPO JAPAN Insurance

Weather Index Insurance mitigating financial damages by climate disaster

Providing the poor with adaptation measures of climate change, Reducing extreme poverty.

Implementation through Collaboration with Academia and International Organizations (UNDP, JICA, etc.)

Recent University Initiatives for Creating a Platform for Stakeholder Collaboration

• Social System Innovation through Secondary Batteries

• Introduction of electric vehicles to the island of Okinawa

• Creation of platform initiated by university researchers – University – Automotive company – Car rental company – Infrastructure provider – Local business communities

29

30

Social Experimentation for Innovation through Stakeholder Collaboration in Kashiwa City, Japan

Knowledge System

Housing Agriculture

Mobility

Urban Planning

Photovoltaics, Heat Pump, Smart Grid

Electric Vehicles, On-Demand Bus

Co-Evolution of Technology and Institutions for Sustainability Innovation

Low-Carbon Society Aging Society

Integration

Institutional Design

Low Carbonization with Elderly People

Emergence of Smart Grids/Cities for Sustainability • Systemic approaches to achieving sustainability of

cities around the world – Tianjin Eco City, Green Grid Initiative in New Mexico,

• Integration of electricity, water, housing, transport, and information

• Various types of stakeholders in society, including component suppliers, infrastructure providers, users, etc.

• Cannot be implemented by a single company specializing in providing specific products

• Requires collaboration with companies in different industries, governments, international organizations

• Transition in business models at corporate levels to societal level 31

Integration of Various Types of Knowledge and Establishment of Social Business Models for Innovation

• Understanding the mechanisms of producing innovation

• Linking and integrating innovations in different fields

• Establishing business model at societal levels • Packaging of knowledge, experience, and

know-how • International transfer of system innovation

coupled with institutional design

32

Academia-Industry-Government Collaboration for Sustainability Innovation

• Functions – Vision creation, Data collection and analysis,

Technological development, Societal legitimation • Challenges and obstacles

– Internal procedures, Mindsets, Costs, Evaluation of outcomes

• Choice of targets – Industrial sector, Geographical region, Technological

field, Societal issue • Methodology

– Basic research, Joint technological development, Demonstration, Wider diffusion in society

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Program • “Bringing forth Global Sustainability Innovation through Collaboration between

Academia, Industry, and the Public Sector2 – Associate Professor, YARIME Masaru, GPSS, University of Tokyo

• “Vietnam towards Low Carbon Development” – Mr. Le Duc Chung, Ministry of Planning and Investment (MPI), Vietnam

• “JICA’s ‘Green’ ODA in the Case of Viet Nam” – Mr. ODAJIMA Ken, JICA

• “URENCO’s Environmental Business on 3R in Hanoi City” – Ms. Luong Thi Mai Huong, Hanoi University of Civil Engineering

• “Project Implementation through Collaboration between Industry and the Public Sector: ITOCHU’s Challenge to Sustainable Energy Development in Vietnam” – Mr. MASHIKO Ryutaro, ITOCHU Corporation

• “Some Results of Applying Energy Saving and Finding New Energy Resources for Sustainability Innovation” – Prof. Dr. Dinh Van Nha, Director of Institute of Science Technology & Training

Omega, Vice Chairman, Vice General Secretary of Vietnam Association on Automation, Vice General Director of Polyco Group

• “Effect of Environmental Financing on Green Innovation and Technology Transfer” – Mr. KAMIMURA Yasuhiro, GPSS, University of Tokyo

• Open Discussion