Green Innovation. German Embassy Green Economy Cycle (GEGEC) Workshop on Incubating Sustainability 29 th November 2017, Nairobi, Kenya

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1 Green Innovation German Embassy Green Economy Cycle (GEGEC) Workshop on Incubating Sustainability 29 th November 2017, Nairobi, Kenya Dr. Michael Prange TUHH Institute TIM (W7) Am Schwarzenberg Campus Hamburg GERMANY michael.prange@tuhh.de

2 Schedule Introduction to Green Innovation Discussion in focus groups Presentation of the findings Dr. Ing. Michael Prange 2

3 Green Innovation Dr. Ing. Michael Prange 3

4 Agenda 1. Megatrends as a basis for Green Innovation 2. Resource efficiency and Climate protection 3. Drivers of Green Technologies and Green Business 4. Strategic Innovation Management and Corporate Venturing 5. Open Innovation Networks for global collaboration Dr. Ing. Michael Prange 4

5 Green Innovation Green Technologies define technologies for environmental and climate protection as well as for sustainable and efficient use of natural resources. Alternative terms: Clean Technologies, Environmental Technologies Green Innovation defines innovative processes, products and services based on Green Technologies. Alternative terms: Sustainable Innovation Green Business defines enterprises which offer products and services in the field of Green Technologies. Alternative terms: Cleantech Business, Environmental Business Dr. Ing. Michael Prange 5

6 Trends Types of Trends: Meta trends Megatrends Socio cultural trends Consumption and Zeitgeist trends Product and Fashion trends Techno trends Penetration depths of Trends: Pure surface phenomenon (e.g. Product trends) Deep, sustainable tendency (e.g. Megatrends) Requirements for Megatrends: Half period of at least 25 to 30 years Persistence against short term ups and downs Appearance and with impact in all possible areas of life Basically global character Source: Zukunftsinstitut (2013) Dr. Ing. Michael Prange 6

7 Megatrends Globalization Urbanization Neo Ecology Connectivity Mobility Health New Learning New Work Female Shift Silver Society Source: Zukunftsinstitut (2013) Individualization Dr. Ing. Michael Prange 7

8 Megatrend Urbanization In the future, 20 to 30 mega cities dominate the world economy: 1970 about ⅓ of humanity lived in ci es more than half of all people lived in cities about ⅔ of humanity is expected to live in cities. Related to Green Innovation: Smart City Car Sharing Bike Boom Mixed Mobility Urban Farming Urban Mining Mega Cities City Quarters Dr. Ing. Michael Prange 8

9 Megatrend Neo Ecology Focus on Sustainability and Efficiency in all areas of Life LOHAS movement in the USA (Lifestyle of Health and Sustainability) Related to Green Innovation: Bio Boom Green Jobs Environmental awareness Sustainability Society Green Investments E Mobility Energy Grids Renewable Energy Reuse, Reduce, Recycle Smart Buildings Dr. Ing. Michael Prange 9

10 Megatrend Connectivity Internet with more than 4 billion users as a basis for world wide Information and Cooperation Strong growth of Social Media and Cloud Computing as well as increasing linkage of Cyberspace and Real World Related to Green Innovation: E Commerce Open Innovation Big Data Energy Grids Smart Devices Internet of Things Small World Networks Crowd Sourcing Dr. Ing. Michael Prange 10

11 Megatrend Mobility Greater individual mobility by more leisure and prosperity Increase in global mobility by road, rail and air transport Growth of transport volume in logistics due to globalization Related to Green Innovation: M Commerce Markets on the way 24/7 Society E Mobility Bike Boom Car Sharing Mixed Mobility Slow Traffic Dr. Ing. Michael Prange 11

12 Megatrends as a basis for Green Innovation Megatrends Action fields Smart City Car Sharing Bike Boom Mixed Mobility E Mobility Energy Grids Smart Buildings E Commerce Big Data Bio Boom Green Innovation Dr. Ing. Michael Prange 12

13 Resource efficiency Resource efficiency is defined as the ratio of a particular output to the required use of natural resources. The output can be provided in the form of a product or service. The lower the required input of natural resources or the higher the output of the product or service, the higher is the resource efficiency. Natural Resources are components or functions of nature that have an economic benefit. These include raw materials, space as well as the function and quality of components of the environment such as soil, air and water. Dr. Ing. Michael Prange 13

14 Resource efficiency as a political goal Reduction of negative environmental effects resulting from the extraction and processing of raw materials, the manufacturing of semi finished and finished goods as well as the use of these products and their disposal Avoidance of supply bottlenecks (technical and economic availability of certain raw materials) Raising of market potential and competitive advantages for resource efficiency technologies in the sense of ecological modernization of the economy Compliance with planetary sustainability boundaries Preservation of natural resources for future generations Dr. Ing. Michael Prange 14

15 Resource efficiency in the product life cycle Lightweight and miniaturization already in product design Savings of raw materials during the production process Reduction of material consumption in the use phase Possibility of clean separation and recycling of the materials in the technical or natural cycles Dr. Ing. Michael Prange 15

16 Climate protection Climate protection is the collective term for all measures that counteract human induced global warming and mitigate possible consequences or even prevent them. Global warming refers to the rise of the average temperature of the lower atmosphere and the oceans, which has been observed since the middle of the 19 th century. By Climate Research expected, and partly already observable consequences of global warming include depending on the region on Earth: sea ice and glaciers melt, sea level rise, thawing of permafrost, growing arid zones and increasing weather extremes with corresponding repercussions on the life and survival situation of people and animals. Dr. Ing. Michael Prange 16

17 Climate protection as a political goal Reduction of the consumption of fossil fuels Reduction of the emission of greenhouse gases that are released by industrial and agricultural production, by energy consumption in transport, in private homes and in public spaces Preservation and promotion of natural resources that can accommodate the quantitatively most significant greenhouse gas carbon dioxide (oceans, tropical rain forests, boreal forests, wetlands) Measures for the adaption to the unavoidable climate change (dike construction, disaster preparedness) Education and behavioral change of people, especially in industrialized countries with high energy consumption and greenhouse gas emissions Dr. Ing. Michael Prange 17

18 Economic Sectors of Green Business Bio Fuels and Agriculture Automobile and Transport Energy Management and Efficiency Renewable Energy Technologies Energy Storage Nanotechnology and Nanomaterials Waste Management Water Dr. Ing. Michael Prange 18

19 Drivers for Green Technologies Global drivers Energy security risks International political instability Pricing and market for externalities Climate change Business trends Market liberalization Growing competition Privatization Outsourcing Limited resources Growing population Decreasing profit margins Global economic development Growing demand for commodities Increasing price and volatility of oil Increasing demand Increased creation of corporate green initiatives Consumer preferences for faster, cheaper, lighter, cleaner products Demands from investors Need for infrastructure investment Demands for safe, reliable and clean energy, water and air Dr. Ing. Michael Prange 19

20 Drivers for Green Business Availability of capital Government funding programs Public markets supporting clean technology Growth in green entrepreneurs Venture capital funds focused on clean technology Active M&A market for clean technology Stakeholder support Socially conscious investors Shareholder and shareholder advocacy group support Trade and industry organizations Regulatory and environmental reforms Environmental legislation Dr. Ing. Michael Prange 20

21 Impact on different Business Areas Agriculture Air and Environment Energy Generation Energy Infrastructure Energy Storage Energy Efficiency Materials Manufacturing and Industry Transportation and Logistics Recycling and Waste Treatment Water and Wastewater Dr. Ing. Michael Prange 21

22 Drivers for Agriculture Natural pesticides and herbicides (organic fungicides, beneficial insects, antimicrobial, etc.) Natural fertilizers (organic fertilizers, etc.) Farm efficiency technologies (sensors and monitoring of controlled insecticides and fertilizer use, etc.) Micro irrigation systems (drip irrigation, etc.) Erosion control Crop yield improvements Dr. Ing. Michael Prange 22

23 Drivers for Air and Environment Air purification and filtration products Multipollutant controls Catalytic converters Fuel additives to reduce toxic emissions Remediation Leak detection Pollution sensors and gas detectors Dr. Ing. Michael Prange 23

24 Drivers for Energy Generation Renewable energy conversion (marine, tidal, solar, wind, biomass) Geothermal heat and electricity generation Waste to energy generation Cogeneration (combined heat and power units) Biofuel technologies (cellulosic fermentation, ethanol) Clean coal technologies Micro power generators (vibrational energy, etc.) Electro textiles Dr. Ing. Michael Prange 24

25 Drivers for Energy Infrastructure Power conservation Power quality monitoring and outage management Power monitoring and control Integrated electronic systems for the management of distributed power Demand response and energy management software Advanced metering and sensors for power (using active RFID networks, WiFi, mesh networks, etc.) Dr. Ing. Michael Prange 25

26 Drivers for Energy Storage Fuel cells for stationary and mobile storage Micro fuel cells Advanced rechargeable batteries (NiMH, Li ion, zinc air, thin film, enzyme catalyzed) Heat storage Flywheels Super and ultra capacitors Dr. Ing. Michael Prange 26

27 Drivers for Energy Efficiency Smart metering, sensors and control systems in applications Energy efficient applications (LED lighting, etc.) Chemical and electronic glass Energy efficient building materials (windows, insulation, etc.) Smart and efficient heating, ventilation and air conditioning systems Building automation and smart controls Automated energy conservation networks Dr. Ing. Michael Prange 27

28 Drivers for Materials Green chemistry Advanced and composite materials (electro chromatic glass, thermoelectric materials, etc.) Bio materials (biopolymers, catalysts, etc.) Nano materials with clean technology applications (Nano powders, adhesives, gels, coatings, additives, etc.) Thermal regulating fibers and fabrics Environmentally friendly solvents Dr. Ing. Michael Prange 28

29 Drivers for Manufacturing and Industry Chemical management services Sensors for industrial controls and automation Advanced packaging (packing and containers, etc.) Precision manufacturing instruments and fault detectors Process intensification Dr. Ing. Michael Prange 29

30 Drivers for Transportation and Logistics Different modes of transport (electric and battery vehicles, hybrid vehicles) Efficient engines and hybrid drive technologies Lightweight structures for vehicles Car sharing tools Temperature pressure sensors to improve transportation efficiency Logistics management software for RFIDs Traffic control and planning technology Fleet tracking Dr. Ing. Michael Prange 30

31 Drivers for Recycling and Waste Treatment Recycling technologies Waste exchanges and resource recovery Biomimetic technology for advanced metals separation and extraction Waste destruction Dr. Ing. Michael Prange 31

32 Drivers for Water and Wastewater High purity water Desalination Filtration and purification Contaminate detection and monitoring Control systems and metering for water use Advanced sensors for water pollutants Separation of water into use types Wastewater recycling and reuse Biological and mechanical wastewater treatment Dr. Ing. Michael Prange 32

33 Corporate Entrepreneurship Corporate Entrepreneurship describes entrepreneurial behavior within medium and large enterprises. Objective is to create an entrepreneurial operating innovative organization. Innovation management is the systematic planning, management and control of innovation in organizations. Venture Capital refers to a temporary transfer of financial resources to companies in the form of equity shares. Corporate Venturing designates venture capital provided by industrial companies, in which the investor does not only pursue financial but also strategic objectives. Dr. Ing. Michael Prange 33

34 Strategic Innovation Management Strategic Innovation Management considers the whole strategic process of managing innovations within a company and between companies. Open Innovation Use of internal as well as external ideas, inventions and innovations Innovation with partners by sharing risk and sharing reward User Innovation Innovation by intermediate users (user firms) or consumer users (end users) Integration of the users in the innovation process for products and services Product Service Systems Marketable set of products and services capable of jointly fulfilling a user's needs System of products, services, supporting networks and infrastructure Dr. Ing. Michael Prange 34

35 Corporate Venturing Corporate venture capital is not provided by financial institutions, but by industrial enterprises. The subsidiaries act as strategic innovation management of the parent companies. Internal Corporate Venturing Investments in departments or projects of their own company Product Champion / Venture Team / Technology Accelerator Cooperative Corporate Venturing Financing of activities in cooperation with other companies Spin off / Joint Venture External Corporate Venturing Investments in other companies Corporate Venture Capital / Business Accelerator / Venture Nurturing Dr. Ing. Michael Prange 35

36 Open Innovation Networks Open innovation networks offer several benefits to companies operating on a program of global collaboration: Reduced cost of conducting research and development Potential for improvement in development productivity Incorporation of customers early in the development process Increase in accuracy for market research and customer targeting Potential for viral marketing The open innovation paradigm can be interpreted to go beyond just using external sources of innovation such as customers, rival companies and academic institutions, and can be as much a change in the use, management, and employment of intellectual property as it is in the technical and research driven generation of intellectual property. Dr. Ing. Michael Prange 36

37 Discussion in focus groups Dr. Ing. Michael Prange 37

38 Discussion in focus groups Green Economy through Kenyan German Open Innovation Networks Kenya s Future Role and Value Propositions in the Global Value Chains Shared Economy and Platform Business for Logistics and Transport Green Innovation and Technologies in the Agricultural Sector Cooperation and Know how transfer between Academia and Industry Dr. Ing. Michael Prange 38

39 Presentation of the findings Dr. Ing. Michael Prange 39

40 Presentation of the findings Green Economy through Kenyan German Open Innovation Networks Kenya s Future Role and Value Propositions in the Global Value Chains Shared Economy and Platform Business for Logistics and Transport Green Innovation and Technologies in the Agricultural Sector Cooperation and Know how transfer between Academia and Industry Dr. Ing. Michael Prange 40