This project has received funding from the European Union's Seventh Framework Programmefor research, technological development and demonstration under grant agreement no 613194
EU-InnovatE: Sustainable Lifestyles & Green
Economy in Europe to 2050
POLICY MAKING AND INOOVATION TO SUPPORT SUSTAINABLE LIFESTYLES
&ENTREPRENEURSHIP
19 OCTOBER 2016
Agenda
3
15:00 Webinar opens
15:05 Introduction & contextSimon Pickard, Director General, ABIS
15:10 Presentation of emerging evidence & findings
Kristian Roed Nielsen – Copenhagen Business School
Mera Christine – Cranfield School of Management
Wilson Hugh - Cranfield School of Management
Watson Rosina - Cranfield School of Management
15:35 Questions and comments
15:55 Summary & forthcoming events
16:00 Webinar closes
Context: Sustainable Lifestyles at EU Level
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Strategic policy objectives:
1. Promoting smart, sustainable and inclusive growth in the
single market
2. Managing an ageing population while reducing current
levels of energy, transport and resource use
3. Rethinking consumption / production systems as part of a
transition to low-carbon economy by 2050
Ref: SPREAD 2050
(www.sustainable-lifestyles.eu)
EU Policy Research Questions
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i. Links between economic, ecological, human and technological
systems and their influence on consumers' values and behaviour
ii. Short and long-term obstacles and opportunities associated with the
transition to European sustainable lifestyles and green economy
iii. New ways and new business models to manage natural resources
while reducing consumption and improving quality of life
iv. Prospects for sustainable lifestyles and the green economy
(i.e. trends up to 2050)
EU-InnovatE Consortium
Key Idea
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„ ... investigate
the creative, innovative and
entrepreneurial roles of users
in developing novel sustainable
products, services and systems
(Sustainable Lifestyles 2.0).“
Towards User Innovation
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WP 7
Synthesis
SL 2.0
WP 8 Dissemination
WP 9 Management
WP 6 Policy Design for SL 2.0
WP 5 Measuring Trends SL 2.0
WP 3
Company
Sustainability
Innovation
Integrating Users
WP 4
User
Sustainability
Innovation and
Entrepreneurship
WP 2 Future of SL 2.0
WP 1 Past and Present of SL 2.0
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This project has received funding from the European Union's Seventh Framework Programmefor research, technological development and demonstration under grant agreement no 613194
POLICY MAKING AND INOOVATION TO SUPPORT
SUSTAINABLE LIFESTYLES &ENTREPRENEURSHIP PRESENTERS:
Kristian Roed Nielsen – Copenhagen Business School
Mera Christine – Cranfield School of Management
Wilson Hugh - Cranfield School of Management
Watson Rosina - Cranfield School of Management
Introducing the Presenters
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Kristian Roed Nielsen
Copenhagen Business School
Mera ChristineCranfield School of Management
Watson Rosina
Cranfield School of Management
Wilson Hugh
Cranfield School of Management
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The development of the
mountain bike was achieved
not by a company or firm,
but by biking enthusiasts
(end-users) who started
tinkering with existing
commercial bikes that were
otherwise not suited for
rough use.
What is user (consumer) innovation?
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”Active” End-users
Co-innovation
Co-production Co-creation
User innovation
Communityinnovation
Open source
Crowdfunding and -sourcing
Prosumer
What is user (consumer) innovation?
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The policy gap
1. Assess the current policies and instruments
2. Suggest policies and instruments to support consumer driven
innovation
3. Empirically test these novel elements by means of experiments as
well as in a social-media enabled consumer conference.
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Work Package 6: Objectives
Data collection phases
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1) Assessing the status quo – Barrier and Enablers
• Systematic literature review 84 articles
• EU-Innovate General Meeting Jan 15 40 academics
• Workshop 1, Copenhagen 25 innovators
• Interviews with policymakers 25 policy makers / shapers
2) Generating novel elements of EU policy
• EU-Innovate General Meeting Jan 16 45 academics
• Workshop 2, Copenhagen 27 innovators, policy makers, academics
• Workshop 3, London 27 innovators
3) Testing and refining policy suggestions
• Sustainability Innovation Exchange 150 citizens
• Policy Roundtable 12 policymakers and academics
Literature Review: Classifying the literature
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Driver of the innovation process
Goal of that innovation process
Independent SEI Facilitated SEI
Framework Individual and social-needs framework. Market-driven framework.
Drivers Personal projects based on interests, passions
and idealism. Typically facilitated by
individuals or small groups.
Typically firm, government or university driven
projects. Typically facilitated by one or more
institution(s).
Solutions Localised and context specific solutions to
larger issues.
Dominance of system innovation.
Generalisable solutions to larger issues, built in
part on end-user knowledge.
Dominance of incremental innovation.
Resources Grant funding, voluntary input, crowd sourced
competences via e.g. internet forums. Some
commercial resources if successful.
Income from commercial viability of the given
product or service. Larger government and
university grants. Small SMEs can also seek
crowdfunding
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Literature Review: Frameworks
Literature Review: Barriers
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Barriers to Independent SEI
Complex and inaccessiblefunding opportunities.
Innovating products is expensive. Loss of warranty.
Lack technical know-howand necessary tools.
Funding regimes do not cover their specific innovation.
Fear of ”selling out” prevents the dissemination of inventions
Barriers to Facilitated SEI
End-users seen as irrational, troublemakers and incapable of contributing.
Inflexible funding schemes do not facilitate end-user feedback gained.
Sticky information makesknowledge facilitationdifficult btw end-user and project leaders.
Policy maker / shaper interviews: Findings
• 25 interviews with policy makers / shapers from across EU
• Lack of knowledge of phenomenon
• Lack of clarity around the terminology
• Silo thinking / working
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“When I hear co-creation I get 3-4 ideas
of what it could be”
“The concept of consumer-led innovation is not a
concept I was familiar with”
“The traditional way of establishing and implementing
policy is very much top-down (…) in many fields of
policy we do not yet use all the available tools to carry
through reactive policy implementation”
“The interesting issue is how such a concept
would translate into a business model and
how it could be seen to generate business,
turnover, jobs, and welfare creation”
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But what do users say?
This project has received funding from the European Union's Seventh Framework Programmefor research, technological development and demonstration under grant agreement no 613194
Emerging Recommendations @ Sustainable
Entrepreneurship & Citizen / User Innovation
Focus on independent end-user innovation
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Lifecycle of a sustainability entrepreneur
Testing and refining:
The Sustainability Innovation Exchange
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• 150 people from
• 40 countries
• 6 x 60 minute topic discussions
• 2 x 30 minute plenaries
• 1,700 unique comments
• Website still live (register to view):
www.globescanforum.com/sie
Seeded the conversation with specific policy proposals
Evaluated these policy proposals for impact and feasibility (though user polls)
Invited users to propose variations to these policy initiatives or indeed to propose
radically different initiatives, and for these to be equally debated
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The Sustainability Innovation Exchange
Policy themes & recommendations: Education
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Sustainable entrepreneurs of the future#2: Upscale sustainable entrepreneurship in Erasmus
Sustainable entrepreneurs of the future#1: Align sustainability & entrepreneurship in strategic frameworks for education & training
I. Align sustainability & entrepreneurship in strategic
frameworks for education & training
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What? Recognise and promote the synergies between societal challenges, education &
training, and entrepreneurship.
How? • Make sustainable development and entrepreneurship issues a tangible,
material part of ongoing Bologna Process negotiations (not mentioned in the
last Bologna Process Implementation report – 2015) for integration into the
European Qualifications Framework
• Integrate a clear link between skills development (in particular
entrepreneurship) and progress towards meeting Europe’s sustainable
development and societal challenges.
II. Upscale sustainable entrepreneurship in Erasmus
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What? Expand the boundaries and focus of Erasmus + and Erasmus for Young
Entrepreneur (EFYE) Programmes to accelerate sustainable entrepreneurship
How? • Modify the current application and evaluation processes for the EYEP scheme,
by incorporating specific sections dedicated to the intended social and
environmental purpose / benefits of applicants’ intended commercial activity,
and the sustainability of their business model. Include an option for host
enterprises to identify themselves as having a social / environmental mission to
stand out to sustainability entrepreneurs
• Refine marketing and promotion of the EFYE scheme to target existing
networks of sustainability (social / green) entrepreneurs, both as potential hosts
for successful applicants and as multipliers to find excellent candidates
Policy themes & recommendations: Networks (1)
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Entrepreneurial ecosystems#3: Create a sustainable entrepreneurship Knowledge & Innovation Community
III. Create a sustainable entrepreneurship
Knowledge and Innovation Community
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What? Establish a new Knowledge and Innovation Community through the European
Institute of Innovation & Technology.
Expand the current KIC model to address undergraduate education
How? • Engage with the European Institute of Innovation & Technology to ensure that
Sustainable Entrepreneurship is considered a priority theme for the next Call
for KIC Proposals
• Include criteria for application and evaluation which prioritise citizen and user /
consumer engagement in the KIC. This seems to be absent in existing KICs,
and the feedback from a new approach would provide valuable data and
insight to strengthen the impact of such knowledge & innovation ecosystems.
Criteria should also include requirements for education and training delivery at
undergraduate (even secondary) level, aligned with Bologna and the EQF
www.eit.europa.eu/activities/innovation-communities
Policy themes & recommendations: Networks (2)
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The power of stories#4: Leverage the Europe Enterprise Network for better learning resources
Entrepreneurial ecosystems#3: Create a sustainable entrepreneurship Knowledge & Innovation Community
“it is not only about educating those in formal programs, but also in informal settings, showing
inspiring examples, but also teach the tools to integrate sustainability into our work and life”
Sustainability Innovation Exchange
IV. Harness the Enterprise Europe Network for better
education and learning resources
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What? A dedicated Topic in the H2020 2018-2019 Work Programme for Societal
Challenge 6 to analyse sustainable / social entrepreneurs in the Enterprise
Europe Network database, to augment the current database with new cases, and
to translate findings into wide-ranging education and learning resources
How? • Stipulate pan-EU analysis of the EEN database to identify common and
distinctive characteristics of successful sustainable entrepreneurs and start-
ups
• Include explicit impact criteria in the Call for Proposals around the creation of
open access / open source teaching materials and toolkits for any education
provider seeking to promote sustainable or social entrepreneurship
Policy themes & recommendations: Funding (1)
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Prioritised investment#5: Expand European funding for sustainable ventures
Theme: Prioritised investment
• It is a widely accepted reality that the current financial system is too focused on
short term and purely financial returns
• Sustainable entrepreneurs often struggle to secure financing given the hybrid
nature of their ventures and / or increased emphasis on societal impact vs. pure
profitability. Public funding is a major enabling factor for entrepreneurs
• Investors need help to find easier and more stable ways of making their
portfolios more environmentally sustainable
• The EIB and EIF are vital channels for alternative funding, filling an important
gap in the conventional investment market both through venture capital, green
loads and social loans
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Case StudiesCozify and Greenrider funding from Tekes (the Finnish funding agency for technology and innovation); Polarstern EXIST grant from the German Ministry for Economic Affairs and Energy
www.nib.int
www.greeninvestmentbank.com
V. Expand European financing for sustainability ventures
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What? Expand the supply of finance to ventures delivering environmental and /or social
benefits
How? • Increase scale of investments under EIB Microfinance scheme with
prioritisation on social / environmental benefits and impacts of sustainable
entrepreneurship
• Amplify mechanisms to prioritise funding sustainability ventures across other
products (e.g. evaluation criteria)
Policy themes & recommendations: Funding (2)
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The wisdom of the crowd#6: Leverage crowdfunding for sustainable innovation
Prioritised investment#5: Expand European funding for sustainable ventures
Theme: The conviction of the crowd
• Crowdfunding has become a popular alternative source of finance for a variety
of for- and non-profit ventures and projects. By enabling small incremental
investments, typically through intermediary platforms like Indiegogo, crowd-
funding increasingly allows non-professional investors to directly support their
preferred project/venture
• It has been suggested that this form of finance could significantly enable more
sustainable innovation, since crowdfunders are driven by a different investment
logic that focuses on the projects’ core values and legitimacy
• Many of our respondents welcomed crowdfunding as method for “riskier”
sustainable ventures to gain early “seed investment”
• However, there was caution over protection for investors and the ‘blind’ nature of
crowd investment, and agreement that additional sources of finance are needed
to achieve scale
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“They can give kickstart funding and give early stage businesses enough time to prove the concept and then go for private equity” Sustainability Innovation Exchange
VI. Leverage crowdfunding for sustainability innovation
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What? Expand the current policy knowledge base on crowdfunding to address unique
characteristics linked to sustainability innovation and sustainable entrepreneurship
How? • Recommend that the European Crowdfunding Stakeholder Forum report on
Crowdfunding for Sustainability Innovation (role of sustainability innovation
currently absent from Forum’s forward objectives): ensuring the inclusion of
perspectives from the European Crowdfunding Network
• Report on best practice on specific sustainability platforms (e.g. Ecocrowd,
funded by German Environmental Foundation) and government co-financing
• Understand whether EU regulatory framework is required to protect EU
investors (e.g. USA regulation model)
Policy themes & recommendations: Funding (3)
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Giant green incubators#7: Align European VC funding with corp-orate venturing for sustainable enterprise
“Corporate venture financing can provide legitimacy to a start-up,
it can provide access to networks and resources within the business
and, most importantly, it can provide options for scaling
through existing markets” (Sustainability Innovation Exchange)
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What? Explore closer alignment / harmonization of current EIB and European Investment
Fund (EIF) venture capital funding instruments with corporate venturing to
promote new sustainable enterprise development, including enterprises with
social purpose
How? • Design of a public Venture Capital investment scheme based on the
implementation of a new co-financing scheme pioneered by EIB which creates
framework conditions and favourable environment for companies to co-invest
in new sustainable enterprise development
VII. Align European VC financing with corporate
venturing for sustainable enterprise
Policy themes & recommendations: Funding / Scaling up
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Giant green incubators#7: Align European VC funding with corp-orate venturing for sustainable enterprise
A class of their own#8: Recognise new legal enterprise form for sustainable ventures
“Entrepreneurs want to command higher valuations, achieve greater impact, and build companies to last at scale with integrity. The B Corp legal and performance standards help ensure that B Corps and their investors meet
all three of these objectives” (B-Corp website)
VIII. Recognise new legal enterprise form for
sustainable ventures
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What? Expand the legal definitions of companies to recognise the emerging
phenomenon of sustainable enterprises and hybrid forms
How? • Formalise For Benefit Corporations ‘B Corps’ as legal form at EU level
• Could be achieved through revision/modification of the existing Societas
Europaea legal framework
Policy themes & recommendations: Impact
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Modelling impacts#9: Enhance strategic policy making through agent based/scenario driven impact modelling
Theme: Modelling impacts
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Country’s household CO2 emissions to 2050
Model outputs - % reduction in total CO2 emissions by 2050
by innovation type
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
Cooperativeliving
PV / Greenenergy
Reduced kmtravelled
Electric cars% r
ed
uct
ion
in t
ota
l CO
2 e
mis
sio
ns
Innovation type
UK
Germany
Spain
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IX. Enhance strategic policy making through household
based / scenario driven impact modelling
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What? Use household (agent) based / scenario driven modelling to enrich policy thinking
and decision making
How? • Use household (‘agent’) based modelling to assess potential impacts of range
of innovations types under required scenarios
• Leverage governmental databases to provide meta-inputs for scenarios and
impact modelling
• Build deeper understanding in policy agencies about interdependency of
systems and domains (e.g., food, energy, mobility, living)
• Expand and enhance the toolkits available to policy makers through training
workshops and demonstrations
Policy themes & recommendations: Open policy making
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Beyond legitimacy#10: Analyse user & citizen roles in innovative policy making
“There are advantages we see of encouraging more open dialogue to shape our thinking around an issue…. We tend to get better ideas and stronger inputs as a result of exploring broader perspectives
on an issue other than our own” Sustainability Innovation Exchange
“Toolkits for citizens in how they can turn their views into policy could help”Sustainability Innovation Exchange
X. Analyse user & citizen roles in innovative policy making
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What? Support new research into the emerging phenomenon and structures that
surround user and citizen innovation for sustainability, and the implications for
open policy-making at EU, national and regional levels
How? • Prioritize analysis of the factors that support and empower new clusters of
users and citizens to engage in policy-making for sustainable futures
• Require the creation of new platforms to give access to wider participation,
whether to provide input to proposed policies or to remove financial barriers to
participation in politics, and to share examples across government domains /
departments and nations of open policy making in practice
www.mind-lab.dk/en www.represent.me www.citizenlab.co
www.crowpac.co.uk
Q&A
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Modelling impacts#9: Enhance strategic policy making though agent based/scenario driven impact modelling
Beyond legitimacy#10: Analyse user & citizen roles in innovative policy making
A class of their own#8: Recognise new legal enterprise form for sustainable ventures
Giant green incubators#7: Align European VC funding with corp-orate venturing for sustainable enterprise
The conviction of the crowd#6: Leverage crowdfunding for sustainability innovation
Prioritised investment#5: Expand European funding for sustainability ventures
The power of stories#4: Harness the Europe Enterprise Network for better learning resources
Entrepreneurial ecosystems#3: Create a sustainable entrepreneurship Knowledge & Innovation Community
Sustainability entrepreneurs of the future#2: Upscale sustainable entrepreneurship in Erasmus
Sustainability entrepreneurs of the future#1: Align sustainability & entrepreneurship in strategic frameworks for education & training
This project has received funding from the European Union's Seventh Framework Programmefor research, technological development and demonstration under grant agreement no 613194
Questions & Feedback from Participants
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Summary & Forthcoming Events
FINAL CONFERENCE
TUESDAY, NOVEMBER 22
HOSTED BY ABIS @ ATELIER
DES TANNEURS IN BRUSSELS
EXPLORATION OF PATHWAYS TO
ACCELERATE SUSTAINABILITY
ENTREPRENEURSHIP
NO CONFERENCE FEES!
This project has received funding from the European Union's Seventh Framework Programmefor research, technological development and demonstration under grant agreement no 613194
Thank you for your time!