Innovation Ecosystems for Sustainability Transition: From Policy Intervention to Stakeholder Coalition

Abstract

In this paper I develop and compare two models of innovation. Following literature review a conventional model of technological innovation is constructed which focuses primarily on new product or new process development. In recent years through my research, teaching and editorial experience, I develop an emerging model of innovation ecosystems which offer a broader framework for innovation studies. I use the automotive industry as a case in point and argue that technological innovation to reduce CO2 emissions from the transport sector has been primarily driven by policy interventions as exogenous forces. Innovation ecosystems are a more effective approach to helping us embark on the transition to sustainability. Key to innovation ecosystems are stakeholder coalition, a combination of both exogenous and endogenous forces to innovation ecosystems. Considering the relative efficiency of innovation development by product producers vs. product intermediate users I conclude that product intermediate users augmented innovation ecosystem is more effective and efficient than policy-intervention model.

Corporate social irresponsibility and stakeholder ecosystems: The case of Volkswagen Dieselgate scandal

“…Demand for diesel cars was bolstered by positive media coverage of "clean" diesel vehicles potentially resulting in a 25% reduction in CO 2 emissions from the automotive industry and contributing toward the EU's overall climate goals. As a result, consumers in Europe were given the impression that by buying a diesel car, they were making a personal contribution to addressing climate change.It has been argued that corporate strategy, economic development, and market competition in developed economies are rooted in technological innovation(Spring, Hughes, Mason, & McCaffrey, 2017;Zhang, 2020). Indeed, companies like Volkswagen regard innovation as a strategic competitive edge(Adner & Kapoor, 2010).…”