Making or breaking environmental innovation? Technological change and innovation markets in the pulp and paper industry
Paula Kivimaaa & Petrus Kauttob

aFinnish Environment Institute (SYKE)

P.O. Box 140, 00251 Helsinki, Finland

Tel. +358 400 148 849

Email paula.kivimaa@ymparisto.fi

bFinnish Environment Institute (SYKE)

P.O. Box 140, 00251 Helsinki, Finland

Tel. +358 400 148 850

Email Petrus.Kautto@ymparisto.fi

Recent academic discussions emphasize internationalizing systems for knowledge generation and innovation. Yet much of academic literature is focused on national innovation systems (NIS). In this study, the crucial factors for environmental innovation are analyzed in a transforming industry sector, the Nordic pulp and paper industry, focusing on bioenergy technologies in pulp mills and on new products from fiber. The analysis examines the role of internationally changing market conditions versus NIS for innovation in this sector.

While NIS still supports the networks through which innovations are created in the sector, the formation of innovation markets is increasingly dependent on international developments. Environmental innovation is most likely when momentum is created by simultaneous changes in both private and policy-created markets. Environmental policies, increasingly originating at EU-level, have added the final impetus for bioenergy technologies, while for new products the policy effect has been smaller. For environmental innovation, environmental policies can make or break the final development.

Keywords: environmental innovation, innovation markets, environmental policy, pulp and paper industry

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8:00 AM-8:00 PM, Friday, June 15, 2007, Oral

The Ontario, Canada 2007 Meeting