policy making and innovation to support sustainable lifestyles & entrepreneurship

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)

http://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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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?


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

http://www.globescanforum.com/sie

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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

http://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


“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

http://www.nib.int/

http://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)


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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)


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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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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

46

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

http://www.mind-lab.dk/en

http://www.represent.me/

http://www.citizenlab.co/

http://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


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


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


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!

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For More Information

www.euinnovate.com

http://www.euinnovate.com/


Thank you for your time!