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05-Feb-08
1
Social Capital & Green
Innovation
Philip Cooke
Centre for Advanced Studies, Cardiff University & School of Development, Aalborg University
Presented at OECD Workshop on ‘Partnerships for Development & Diffusion of Innovation’
Social Capital: Definition
• The exercise of social norms of reciprocity,
trust and exchange for political or
economic purposes among networks of
social actors
• In business, involving other firms and
social, political or economic institutions or
organisations for mutual benefit
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Social Capital: Mechanisms
• Embeddedness (Relational & Structural)
• Autonomy (Capabilities – e.g. Penrose)
• Integrity (e.g. Professional)
• Integration (e.g. Community)
• Linkage (e.g. Networks)
• Synergy (e.g. Governance)
• Trust
Social Capital & SME Performance (Cooke &
Clifton, Regional Studies 39, 1065-1078) (2005):
Key Research Findings
• Using postal survey and interviews
• For 100 firms x 3 areas per 12 UK regions
• Innovative SMEs high users of Social Cap.
• :Such SC in global and local networks
• :Collaborate more than non-innovators
• :Trust collaborators more
• True in high & low GDP performance areas
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1. Green Innovation, Green Clusters & Green
Governance: Key Analytical & Policy IssuesWe are faced with Climate Change through Global Warming
from Greenhouse Gases
Peak oil has probably been reached although oil & other fossil fuels will continue to be exploited but at high consumption cost $100+ per barrel
What are innovators doing to contribute to reductions in human contributions to Climate Change & Transition to Non-Fossil Fuels? In what ways are Social Capital Partnerships Helping?
From an evolutionary perspective, we recently see some regions able to multiply their cluster „species‟ according to „related variety‟ theory (Jacobian clusters, after Jane Jacobs)
Related variety theory postulates growth from „knowledge spillovers‟ among SMEs with high horizontal „absorptive capacity‟ between sub-industries
Elsewhere few or zero, possibly too specialised, clusters may be found.
How far does Social Capital Theory explain cluster multiplication and, contrariwise, lack of cluster forming energy?
What other contributions does Clustering make to reductions in CO² and other greenhouse gas emissions?
An Example of Complex Related Variety
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Cleantech %-Share of Total VC Investments in 2006
2. California‟s Jacobian Clusters
Cluster Legend:
Clean Tech
Biotechnology
Wireless
ICT
Agro-Food
Wine
Film
Click for
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Micro-elektronica
Nanotechnologie
Telematica
Communicatie
E-security
Mechatronica
Feed – food
- health
Life
sciences
L-SEC
DSP-Valley
Leuven.Inc
Jacobian Clusters Involving Related Variety
with „Platform Policy‟ support: KU Leuven
Cleantech?
Related Variety „Platform‟ Support• Knowledge centres (e.g. IMEC)
• Entrepreneurs (many „academic‟; IPR assigned)
• Seed Money, (e.g. from KU Leuven Inc.; business angels)
• Capital markets (strong links to Bourse, AIM, NASDAQ etc.)
• Infrastructure (3 Science Parks with incubation)
• Role Models („academic entrepreneurs‟)
• Cluster Policy (Flanders & Local support)
• Presence of international companies (e.g. interaction with Philips, Centocor, MedVision, Autocyte & [agro-food] Cargill)
• Networks within and among sub-clusters, also abroad
• Government (national funds supporting research & innovation)
• Quality of Life (university town, historic and green ambience, Brussels & international airport nearby)
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3. Social Capital & Green
Innovation in Wales
• In the Social Capital & SME Performance research
Wales was one part of UK where business social capital
(8/12)ranked much higher than SME competitiveness
(11/12)
• „Bridging‟ social capital institutions play an important
role; (former) WDA („Taste of Wales’); Welsh
Government (Green Agenda); LEADER schemes; EU
programmes/projects; Co-operative agricultural supply;
Distinctive Language & Culture; History of Trade Union
solidarity, etc, etc.
• These combine as conventions, institutions and
organizations that embed certain kinds of „partnership
governance‟ with economic development potential
Environmental Innovation in Wales:
30 Solar Energy Equipment Manufacturers
LlaniSolar
G24i
Sharp Solar, Dulas; PV Systems;
Corus Colours, ICP Solar, Jantec
Solar, IQE
PHOTOVOLTAICS CLUSTER
ICP Solar
MicaulSolar
Clear Sky
ThermonaxSundance Renewables
Royce Renewables
PJB Systems
Solar Housing
Solarfit
KDUK
Sunset Solar
SB Alternative Energy
Bright Light Solar
VE Heating
Eco Energy Systems
Solarfit
InterSolar
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IGER – Novel Agricultural Products Research: Miscanthus & SugarGrass
Germinal
Holdings, Bristol
Germinal
Holdings, Lincoln
IGER
IGER
SW Seed Ltd.
Cambridge
Genus,
Hampshire
Alltech, USA,
Ireland &Worldwide
BPI Agri,
London
R&D
SAs
Research
Collaborations
Sanofi-Aventis
Guildford
Advanta,
Lincoln
Unilever,
Cheshire
Genencor, Copenhagen
Alltech
Merial
Biotal, Cardiff Tesco
South Counties Foods
Dengie Crops
Dow Elanco
Monsanto Cultech, Port Talbot
Prya
Kemira, Helsinki
Molecular
Nature
Spinout
Germinal
Holdings N.I (2),
RoI
Biocomposite CentreBangor Wales
Swansea University
Swansea Institute of HE
Technium Sustainable Technologies
IGER
CARM Technologies
WAG
Cardiff University National Non-Food Crop Centre
DTI
Cambridge Biopolymers ltd, USA
DEFRA
Plant Fibre
Technology ltd
Estech Europe
Hydro Polymers ltd, Norway
Infineum UK ltd
Warwick Manufacturing Group
Warwick International ltd, (Sequa, USA)
Aston Uni. Polymer Processing
& Performance ResearchKnauf Insulation
Dairy Crest Ingredients ltd
Cambridge Biopolymers ltd
Springdale Crop Synergies ltd
Hyperlast ltd, UK & Polland
Research Centres Research Collaborations (customers)
Bangor University
NEWI, Wrexham
Spin-offsFounding
Bodies
EU
Springdale Group
BBSRC
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Green Cluster Entrepreneurship: N. Wales
Madryn.co.uk
GWINLLAN
PADRIG
LLANBADRIG
VINEYARD
Hemp: 8
Farms
Car Door Panels
e.g. Mercedes
Future Farmers of Wales
140 FarmsBiofuels (e.g. BML), Functional Foods
& Organics
Omega 3 Oils: Avocado,
Camelina, Olive & Hemp
Culinary Oils
HERBS FROM
WALES
4. Two Newly Researched „Cleantech‟ Energy
„Cluster Species‟ in Denmark
• Wind Turbines
• Manufacturers (evolve from single, small to sea wind farms at scale)
• Materials (base, towers, blades, galvanisers)
• Gearboxes (DK then DE)
• Hydraulics, Pneumatics
• Coolers, De-vibrators
• Sensors, Controllers, Measurers
• Machining, Flanges, Rings, Fasteners Heat storage & back-up heating
• Research
• Services, software
• Sea & land logistics
• Solar Thermal
• Solar Collectors
• Glazed (Roofs) – (Flat Plate Collectors)
• Glass
• Heat absorbent copper/aluminium
• Coatings, paint
• Pipes welded to absorber plate
– Vacuum Collectors• Parallel glass tubes
• Absorber
• Transfer pipes
• Vacuum is insulator
• Unglazed (Swimming Pools) Long
tubes• Synthetic absorbent material
• Hydraulics in pool filtration system
• Heat storage & back-up heating
• Plumbing & Installation
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The North Central Jutland Wind Turbine Cluster
Source: Danish Wind Industry Association Data, 2007
Jutland‟s Solar Thermal Cluster
Source: ESTIF Data
Danfoss A/S
Grundfos Sensor
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Other North Jutland Jacobian Clusters• Aalborg-Aarhus – Solar Thermal Energy
• Salling – Furniture
• Ikast – Textiles, Fashion Clothing
• Vaarst – Pigmeat
• Barritskov – Årstiderne Organic Food Network (30,000 households per week- organic food boxes)
• Nr. Aalborg – Insulated Pipework
• Nr. Skagen – Fish Processing Equipment
• Why do California, Jutland & Wales Have „Cluster Species‟ Multiplication? Possible Elements -
• Social Capital
• Collective Entrepreneurship
• Technological Branching
• Peripherality (Copenhagen is favoured core)
• Infant Industry Subsidy
• Innovation System – DTI, Universities, Local, now Regional Funding
• A high degree of „related variety‟
5. Some 40% of Freight in UK is Food
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Redundant Trade
6. Agro-food producer clusters: S. Germany
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Stockholm‟s local food cluster network
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The Dogme Organic Project, Copenhagen
• Dogme means „rule‟
• The rule is 75 % of the foodstuff used in the
kitchens of the municipalities and canteens must
be organic by 2008. This means:
• Day-care centres
• 24-hour care centres
• Canteens
• Residential homes
• Schools
The rural-urban relational space
• Copenhagen city council spends €25 million ($30 million) on food annually
• Local procurement creates an attractive market for organic farmers
• Accordingly this builds a stable foundation for further organic development
• Politically, it shows the City of Copenhagen talks and acts seriously about being a “locomotive” for sustainable urban (& rural) development
• Aim is to make food organic within the existing food budgets. This if work routines and food habits are changed together
• Policy for post-school education of kitchen personnel
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Results: Copenhagen
• Reorganization to organic food has been accomplished
• 410 of the 517 day-care centres in the City of
Copenhagen have been reorganised
• 35 24-hour care centres reorganised by end of 2006
equivalent of 75% now organic
• 40 out of the city‟s total of 53 canteens and community
centres reorganised – 76% organic end-2006
• In 45 out of 65 of the city‟s total of 65 primary and lower-
secondary schools it is now possible to buy a healthy
lunch from school booths
• The lunch served in these schools is at least 60 %
organic
City of Ishøj
• a suburb of 21,000 to the south of Copenhagen
• 1997 creates its environmental action plan: resource consumption, quality of drinking water, and business
• 1999 environmentally friendly public purchases invoked
• 2001 Waste and waste water project in cooperation with local housing associations
• 2001 environmental award is launched
• 2002 all nurseries and integrated nurseries/kindergartens serve 100% organic food
• 2003 the organic food project embraces others city institutions
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‟Food & Climate,‟ Malmø, Sweden
• Based on free meals (as usual in
Sweden)
• Linking with curriculum
• Aiming at 75% organic
• Linking with climate effects of food
consumption and sustainability
• Based on local school food preparation
http://www.malmo.se/skolautbildning/skolmat/ekomatiskolan.4.d2883b1066e2aee8a80003130.html
Conclusions
• Social Capital & (Green) Innovation go hand-in-hand
• Climate Change & „Peak Oil‟ ($100 barrel)
• Innovators and Investors Rush to „Cleantech‟
• Cleantech has Related Variety & Knowledge Spillovers („Business‟ Social Capital) to ICT, Biotech, Nanotech, & Materials – Cluster Multiplication
• „Platform Policies‟ Require Horizontal, not only Vertical Governance Models
• „Food Kilometres/Miles‟ & „Redundant Trade‟ Problems
• Green Innovation, Green Clusters & Green Governance are the New „Grand Policy Challenge‟
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