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  • Low Carbon Innovation

    Support System Comparison:

    Jamaica and Scotland

    Presented by: Sameer Simms

    Date: September 04, 2015

    Edinburgh Centre for Carbon Innovation

    High School Yards, Edinburgh, EH1 1LZ, Scotland

  • Executive Summary

    The innovation support systems in Jamaica and Scotland are assessed to determine areas where

    strengths of the Scottish system can help weak areas in the Jamaican system. The approach taken is

    to determine the fundamental stages of, factors supporting an enabling environment for, and the

    barriers to low carbon innovation in general then identify how each area is addressed by each

    government. The fundamental stages determined are conceptualisation, feasibility assessments,

    developing and testing, and commercialisation and implementation. The factors supporting an

    enabling environment are problems and challenges requiring new solutions and support for

    fundamental stages identified above. The fundamental barriers identified are the often need for

    behavioural change, access to funding, government policies, and technical barriers. Based on the

    information presented, recommendations are made for areas of improvement to the Jamaican

    system.

    The factors creating the need for conceptualisation identified are the high GHG emissions associated

    with heavy use of fossil fuels and the negative impacts on trade balance, currency, energy security,

    and competitiveness associated with heavy importation of fossil fuels. Based on the assessment of

    support provided for each stage of the innovation process, recommendations are made to strengthen

    weak areas in the Jamaican innovation system. In the area of supporting and promoting

    conceptualisation, it is recommended to put more pressure on academic institutions to supply

    knowledge based on the problems in the country, publicise the importance of and current innovation

    in Jamaica, encouraging business to develop an innovative culture, and setting more specific energy

    related goals covering transport fuels, emissions, electricity generation, and energy use per capita.

    Improving support can be achieved through increasing access to technologies and the internet,

    working with international partners to increase access to expertise and equipment, encouraging more

    internship placements, and increasing access to business support and advice. To improve the support

  • for commercialisation and implementation, establishing a start-up accelerator, increasing accessibility

    to marketing, financial, and business support and advice through a one-stop website, and incentivising

    the increase of quality and quantity of export goods and services are steps that can be taken.

    At the core of any strong innovation system is a strategic and specific policy outlining thorough action

    plans. This is lacking in Jamaica and therefore it is recommended that one be developed using existing

    ones in other countries pioneering innovation for a low carbon future. Recommendations to address

    the barrier of funding are lowering interest rates on low carbon loans and providing incentives for

    businesses that fun R&D. To address technical barriers, it is recommended to increase partnerships

    with research centres and universities locally and abroad to encourage research pooling and

    knowledge exchange. Also, focus should be placed on building capacity for developing low carbon

    products, tapping into the expertise present in multinational companies operating in the island, and

    encouraging these companies to provide internships for locals.

    It is highly recommended that a one-stop entity be established which works to address the barriers to

    low carbon innovation and provides support at all stages. Such an entity would develop strong ties

    with relevant players in, among others, the finance, research, technical, and consulting industries.

  • Contents

    Executive Summary ................................................................................................................................. 2

    Introduction ............................................................................................................................................ 5

    Stages in Low Carbon Innovation............................................................................................................ 7

    Enabling Environment ............................................................................................................................. 9

    Barriers .................................................................................................................................................. 12

    Government Efforts .............................................................................................................................. 14

    Support at Each Stage ........................................................................................................................... 18

    Addressing Barriers ............................................................................................................................... 20

    Conclusion ............................................................................................................................................. 23

    Recommendations ................................................................................................................................ 24

  • Introduction

    What is Low Carbon Innovation?

    Innovation is the process of conceptualising, developing, and implementing novel or improved

    products, services, and processes which create new value for businesses, organisations, people, and

    societies. Innovation is the driver of technological advancements, improved ways of life, and a more

    sophisticated human society. Innovation effectively provides better solutions for present and future

    problems. Innovation is facilitated by inventors, entrepreneurs, mentors, and individual achievers who

    might be under pressure to compete, are challenged, or are visionaries wanting to define a new

    paradigm. Innovators require an enabling environment which provides the drive to innovate, freedom

    to explore, and support at all stages. Low carbon innovation describes innovation that solves the

    fundamental problems of reducing greenhouse gas emissions and reducing dependence on fossil

    fuels. The products, methods, and services developed tackles the challenge of satisfying current

    demand while reducing the use of fossil fuels. Innovation typically includes four fundamental stages,

    namely conceptualisation, feasibility assessments, development and testing, and

    commercialisation/implementation.

    Role of Innovation in Economic Growth

    Innovation can be seen as the primary source and a driver of economic growth and productivity. It is

    a driver that solves our problems and makes possibilities realities. Advances in technology have shown

    an impeccable record of improving the efficiency of operations in the primary and manufacturing

    sector which has led to cheaper production prices, increased production, and lower prices for

    consumers. Lower production prices gives producers and manufacturers a competitive advantage and

    bigger profits. The competitive advantage allows them to compete successfully on the global market

  • and the bigger profits increase tax revenues and allow them to expand and create more jobs.

    Innovations in the health care industry have led to better treatment of and resilience to illnesses which

    corresponds to less sick days and therefore higher productivity. It is a similar story for innovation in

    all industries, better products and services, which ultimately leads to residents being more able to

    afford desired goods and services. In terms of low carbon, innovation serves to reduce dependence

    on fossil fuels. For countries like Jamaica that have a high dependence on fossil fuels originating from

    other countries, reducing expensive fossil fuel consumption serves to reduce costs of locally produced

    goods and thus increase competitiveness, increase insulation to global fossil fuel price shocks, reduce

    demand for foreign currency (to pay for fuel imports) and thus increase the value of the local currency,

    and reduce damage to the environment caused by oil spills, GHG emissions, etc.

    Innovation in Jamaica and Scotland at a Glance

    The two nations, based on the indicators used, are at opposite ends of the spectrum in terms of

    innovation in general. The indicators chosen are those available for the two countries.

    Indicator Jamaica Scotland

    Gross expenditure on R&D as a % of GDP (2005)

    0.3 1.61

    Patent filings per million people

    23 (2000-2005) >230 (2002)

  • Stages in Low Carbon Innovation

    Conceptualisation

    The problems in a society provide the primary incentive to conceptualisation. This is the very first step

    of the innovation process without which, innovation will not happen. Simply put, if the society is

    perfect there is no need and possibility for improvements. Experiencing or recognising a problem is

    what gets our brains thinking of finding a solution whether it be novel or improvement of a current

    solution. In some cases, relatively few, innovations are the result of accidental discoveries. Some of

    the best known accidental inventions are artificial sweeteners, the microwave, Teflon used in non-

    stick cookware, the pacemaker, corn flakes, and the X-ray machine. Innovators conceptualise solutions

    for different reason including a desire to excel in a particular field, make money, and for the public

    good. Whatever, the reason, the other stages are important for successful innovations.

    Feasibility Assessments

    Arguably, it is logical to conclude that billions of ideas are created every day from the minds of over 7

    billion people on our planet. However, it is reasonable to say that it has never been the case where

    billions of innovations are implemented in society on a daily or annual basis. Some ideas are good

    while some are not. After the conceptualisation process, it is necessary to determine the potential of

    an idea to be successfully implemented. To do this, one must assess the need for and barriers to the

    implementation of an idea. The need for ideas with high potential must be strong an urgent which

    implies that current solutions have lived past glory days. Whether it be due to inherent weaknesses

    or new standards or requirements, over time, solutions become less effective and thus creates new

    problems to be solved. If the need is not sufficient, the likelihood for successful implementation will

    not be strong. One must also consider the barriers that an idea faces whether they are technical,

    financial, or socio-cultural. The rank of barriers in terms of size is specific to a particular innovation. As

  • an example, while it was technically and financially feasible to create devices to capture methane from

    human and animal faeces for use in cooking, social acceptance proved to be, and is still, an issue in

    many parts of the world. Another example, while many persons have gotten over the fear of hydrogen

    hazards and it is technically feasible to power vehicles only with hydrogen, the high initial and

    operating costs is the biggest barrier to wide-scale implementation. The final example, imagine a taxi

    operator desiring to power an electric vehicle using only photovoltaic panels on the roof. While he/she

    might not mind and can afford to install the panels, the equipment is not technically feasible (with

    current technology) to fit all the panels required (to satisfy the power demand) on the roof of the car.

    Development and Testing

    In this stage, an idea is refined to make it more investment friendly and/or implementation-ready. An

    idea must be tested to determine its effectiveness and discover problems that were previously

    unknown. This is the stage where some ideas becomes a tangible product or a tested intangible service

    or process. At this stage sizeable technical and financial support might be needed as was the case for

    the creation of smaller and more economical fuel cells. Heavy investment from the National

    Aeronautics and Space Administration (NASA) in the past and automakers in more recent years have

    led to innovative fuel cells. This is the earliest stage at which investors are likely to be sought.

    Commercialisation/Implementation

    This is the last fundamental stage where full-scale operations, marketing, and selling begin. The stage

    where a product or method is introduced into commerce, making it available on the market. For

    commercial products, large investment and support (for skills, management, legal, etc.) might be

    needed. Stakeholders determine when, where, and how to launch a product and who to target.

  • Enabling Environment

    An enabling environment for low carbon innovation presents problems and challenges warranting the

    need for improved solutions, freedom to explore opportunities, and support in other phases of the

    innovation process.

    Need for Conceptualisation

    A. Unsustainable GHG Emissions

    The primary concern of GHG emissions is its contribution to excessive global warming which brings

    the risk of detrimental sea level rise, more frequent, and/or intense droughts and other

    meteorological phenomena such as cyclones. The melting of the ice caps caused by global warming

    severely affects ecosystems due to habitat destruction, increased water temperatures, and other

    effects.

    B. Energy Security and Competitiveness

    Another major driver of low carbon innovation is the need to increase resilience and insulation from

    oil price spikes. The oil crisis in the 1970s was the first major driver of renewable fuel sources. Fossil

    fuels, hands down, is the primary energy source of the world. Almost all countries demand this fuel

    however, not all countries have fossil fuel resources. This creates a situation where countries are

    vulnerable to the effects of varying fossil fuel supply and prices, factors manipulated by other

    countries. Shortage in the supply of fossil fuels can have long term devastating economic and social

    impacts on a country. Also, a countrys productivity and competitiveness is directly related to the price

    of energy (fuel for transportation and electricity generation). The higher the price, the lower the

    competitiveness due to resulting higher prices for goods. High energy prices can therefore stifle the

    growth of an economy in an increasingly globalised world.

  • C. Economic Impacts

    Many fossil fuel-lacking countries pay for the resource using foreign currency (typically the USD). This

    situation creates a high demand for foreign currency which is earned by exporting products and

    services. The supply and demand for foreign currency directly affects the strength of that currency to

    the locals. In the scenario of weakening national currencies due to trade imbalances, governments

    typically move to reduce spending on imports which serve to curb the demand for foreign currency.

    To reduce spending on imported fossil fuels, the demand for energy must be supplemented or

    reduced. Simply putting quotas on importation (as the only measure) will only increase the prices

    residents pay. Arguably, this can create a ripe environment for innovation due to the numerous

    resulting adversities but the effects are likely to be too devastating. Supplementing the energy

    demand requires the use of alternative fuel sources under diversification schemes. Reduction in

    energy demand can be achieved through increased energy efficiency and conservation, improved

    water and waste management (which requires energy), and other means.

    Support at each Stage

    Support is required in the stages of feasibility assessment, development and testing, and

    commercialisation/implementation. After conceptualising an idea, it is necessary to test the quality

    and potential of an idea. An idea might be good but not suitable now or doesnt improve previous

    solutions. Support is needed in the form of easy access to information, expertise, facilities, and

    sometimes funding. This is a crucial step which acts as a filter for ideas. Innovators might test the

    feasibility of an idea technically, financially, and socially (normally in that order). This variety of support

    is typically, on a larger scale, needed at the development and testing stage as well. Information can

    be made more accessible by creating a central point from which sources of specific knowledge are

    listed, creating and publicizing reports, and through knowledge broker services. Access to expertise

    can be improved though similar means as well as by, among others, forming more partnerships

  • between the private sector and universities, research pooling, forming associations of professionals,

    conducting more events that facilitate networking, and publicising work done by experts. The

    commercialisation/implementation of an idea should be thoroughly planned. While innovators are

    adept at conceptualising and developing an idea, it is often the case that they lack the sufficient

    business and finance proficiency to successfully commercialise a product. Support then is needed to

    fill this gap. This support is often in the form of improving access to angel investors, attractive loans,

    grants, manufacturers and suppliers, software and web designers, market analysis experts, marketing

    strategy experts, and general business advice and support services.

  • Barriers

    Behavioural Change Requirement

    The use of fossil fuels have shaped the way humans think about energy and how they go about

    conducting activities. The current energy infrastructure has been developed for fossil fuels. Modern

    fossil fuel power plants can produce reliable power at any time to meet demand. The high energy

    density of gasoline and diesel as well as historic cheapness have led to the norm of increasing usage

    to meet increasing demand. In the past, there was never a significant need to conserve energy and

    this has made humans high energy users (wasteful). Alternative sources such as solar and wind have

    a much lower energy density and cannot satisfy the current norms for electricity usage or transport.

    Also, they are intermittent and so not reliable to supply all the power to meet demands at all times.

    Their use requires a smart grid and expensive storage systems. Modern electric vehicles are known to

    offer very limited range when compared to typical petrol and diesel vehicles. Humans have gotten use

    to travelling over 500km on one tank and refuelling in less than 5 minutes. Electric vehicles typically

    offer less than 200km on a full charge and takes hours to fully recharge. The current status quo is to

    have energy when and where it is needed and to do so without depleting life savings. The need for

    behavioural change and attitude towards energy usage is then a barrier to low carbon innovation.

    Without behavioural change, ideas must not only reduce fossil fuel use but also maintain the status

    quo otherwise successful implementation will be hard to achieve.

    Availability and Access to Funding

    Low carbon innovation has had a reputation of requiring special government effort to promote

    investment. Funding is a requirement for all innovations. Many low carbon ideas require heavy

    funding from the public and private sectors. Most investors are profit-driven and so are looking to

    make money quickly which means the idea must have the potential to make large profits in short

    order. If the product is costly or will require significant behavioural change of consumers, it is unlikely

  • to attract sufficient investment. This situation has resulted in governments, aware of the non-financial

    benefits, providing incentives to investors and consumers. The level of funding and provision of

    incentives varies by country but is often times inadequate.

    Government Policies

    Government policies play a key role in the innovation process. The process is likely to be more

    successful in a country that has created policies supporting reduction in GHG emissions, reduction in

    energy use, use of alternative fuel sources, use of energy efficient products, etc. These policies have

    strategies that provide incentives, incentives necessary for some products to be profitable. These

    policies are also key to catalysing behavioural changes.

    Technical

    As with many innovations, low carbon products face technical problems. These problems might exist

    in creating the product or in implementing a product in current infrastructure. Some technical

    problems lead to others such as high prices and requiring significant behavioural change. These

    problems, over time, might be solved by advances made through continued research and increased

    funding.

  • Government Efforts

    The Jamaican and the Scottish governments have set low carbon goals. The Jamaican government

    have set a goal of 30% (revised from 20%) and 12.5% renewable energy contribution to the energy

    mix by 2030 and 2015 respectively. The exact contribution currently is roughly 7%. The commissioning

    of a new solar farm and two wind farms should increase this number to around 11%. The Scottish

    government set more ambitious low carbon goals of 80% of electricity and 11% of heat generated

    from renewables, 12% reduction in total energy consumption, and 42% reduction in emissions

    (interim to 80% by 2050) all by 2020. Net Scottish emissions were 26.4% lower than 1990 levels

    representing an average annual reduction of 1.2% compared to 3% the current requirement.

    The Jamaican government has produced several policy documents which describe its action plan for a

    low carbon and more energy efficient future. In terms of innovation support, there is one document

    that speaks to the use of science and technology to tackle problems. The Science and Technology for

    Socio-Economic Development policy speaks to the country realising it must use existing technology

    and knowledge to start tackling chronic production problems while building a stronger research and

    development base to seek answers and anticipate problems. The policy also mentions that the island

    possesses all fundamental infrastructural Science and Technology (S&T) components except for risk

    and venture funds for technology-led projects and pilot plant facilities. The document highlights the

    need for a closer working relationship between the public and private sectors and between academia

    and production. Other points highlighted by the document are:

    The need to strengthen the role of innovation and the proper funding of S&T activities

    The need for greater private sector participation in S&T development and application

    Increasing allocation to R&D and S&T through direct and indirect taxation, use of funds from

    the National Lottery, and contributions from education tax collected.

    The need to ensure that a sizeable portion of allocations to R&D actually goes towards R&D

    as opposed to salaries and administrative activities (the current scenario).

  • The Scottish government released a similar policy document titled Scotland Can Do: Becoming a

    World-Leading Entrepreneurial and Innovative Nation. The document is a framework setting the

    vision for Scotland to become a world-leading entrepreneurial and innovative nation and outlines

    several ambitious goals including having an education system with entrepreneurship and innovation

    at its core and of course, to achieve an increase in innovation and entrepreneurship activity from

    Scottish individuals and businesses. Indicators to be used for measuring its progress are increases in

    number of businesses, research and development spending, and knowledge exchange from university

    research. Both documents primarily describe the current situation and where each country wants to

    be in the future but neither outlines exactly how they will achieve goals, at least in a thorough manner.

    The Scottish government released two documents which provides more specific action plans, namely

    The Government Economic Strategy and A Low Carbon Economic Strategy. The general economic

    strategy document identified the role of the government in creating a supportive business

    environment (with a focus on growth companies, growth sectors, and growth markets) which will

    accelerate the growth of the economy. To provide this supportive business environment, measures

    are to be taken in the areas on international trade and investment, supporting business growth,

    helping small businesses create jobs, growth sectors, innovation and commercialisation, and taxation.

    In the area of international trade and investment, some of the commitments by the government are:

    Prioritising lending, from the Scottish Investment Bank, to support SMEs with international

    ambitions and the Export Support Initiative will continue to deliver advice and support to

    SMEs with export potential.

    Supporting, through the Scottish development International, 8000-10000 more businesses in

    developing skills necessary to facilitate exploitation of international markets by 2015.

    In the area of supporting business growth, the government has, among others, committed to:

    Offering support, through Skills Development Scotland, to make it easier for SMEs to hire staff

    and take on apprentices

  • Continuing the advice and support services to potential start-up and early stage businesses

    through Business Gateway

    Extend the success of Public Contracts Scotland a free-to-access portal which has improved

    access to public contract opportunities

    In the area of growth sectors, some commitments by the government are:

    Through Creative Scotland, support investment opportunities in the creative industries

    Investing in universities to secure more economic and social benefits and also to develop

    partnerships with businesses to exploit their research.

    In the area of innovation and commercialisation, some commitments by the government are:

    Launching a centralised point of access interface for businesses to knowledge and expertise

    within universities and research institutes in Scotland.

    Streamlining the support delivered by Scottish Enterprise and Highlands and Islands

    Enterprise for commercialisation and innovation.

    In the area of taxation, the government has, among others, committed to:

    Continuing the Small Business Bonus Scheme (SBBS) which provides a discount (25% to 100%)

    on business rates bills for eligible business properties

    Continue freezing council tax bills at a time of rising prices and increasing UK Government

    taxation in the hopes of boosting consumer spending.

    While the low carbon strategy document does not outline a wide variety of relevant steps for

    supporting innovation, the goals or targets set by the government (basically reducing GHG emissions,

    improving energy efficiency and conservation, and increasing the use of renewables) creates an

    environment supportive of low carbon innovation. Three relevant specific steps outlined are:

  • Promoting low carbon lifestyles to inspire local action in communities through the Climate

    Challenge Fund.

    Promoting, through the Vision in Business for the Environment in Scotland Awards, excellence

    in business innovation in tackling emissions and improving environmental performance.

    Working with various bodies to establish new technology hubs/alliances to act as focal points

    for low carbon innovation.

    In general, it is clear that the government policy in place to support innovation in Jamaica is in its

    infancy and is neither specific nor thorough. On the other hand, the Scottish government has

    addressed support for innovation in all stages from conceptualisation to commercialisation.

  • Support at Each Stage

    The tables below shows government measures in place to support stages in the innovation process.

    Conceptualisation, this process requires a need, incentive, or challenge to develop solutions for

    problems.

    Jamaica Scotland

    Set goal of increasing the share of

    renewables in the energy mix to

    30% by 2030

    Promotes the need for a low carbon

    lifestyle

    Set goal of reducing GHG emissions by 42% by 2050

    Set goal of significant decarbonisation of road and

    rail transportation by 2050

    Set goal of reducing final energy use by 12%

    through energy efficiency measures by 2020

    Set goal of 80% share of electricity energy mix

    coming from renewables by 2020

    Promotes the need for a low carbon lifestyle

    Feasibility Assessment and Development and Testing, these two stages are joined together here

    because they often require similar support measures even though they are very distinct stages.

    Support required is often in the form of market analysis services, investment, expertise, access to

    facilities, and business advice.

    Jamaica Scotland

    Government encourages greater private

    sector participation in Science and

    Technology Development

    Government plan to establish new

    technology hubs/alliances

    Export Support Initiative

    Skills Development Scotland

  • Research institutions increasing allocations

    to research that solves local problems

    Provision of Awards

    Caribbean Climate Innovation Centre

    Office of Research and Innovation

    (University of the West Indies, not low

    carbon exclusive)

    Technology Innovation Centre (University of

    Technology, not low carbon exclusive)

    Jamaica Venture Capital Programme

    Business Gateway

    Government launch of a centralised

    point of access to knowledge and

    expertise by businesses

    Government investing in universities to

    support partnership with businesses to

    exploit research

    Provision of awards

    Incubators and Accelerators

    Commercialisation and Implementation, this stage requires access to, among others, incentives,

    funding, marketing services, trained and skilled staff, networks of suppliers, and business support and

    advice.

    Jamaica Scotland

    Jamaica Venture Capital Programme

    Caribbean Climate Innovation Centre

    Streamlining of support from Scottish

    Enterprise and Highland and Island

    Enterprise for commercialisation and

    innovation

    Carbon Trust

    Incubators and Accelerators

    Low Carbon Infrastructure Transition

    Programme

  • Addressing Barriers

    In this section, government measures in place to address barriers in the innovation process are

    highlighted.

    Behavioural change, this is a necessary step for those innovations which requires changes to norms

    for acceptance by end users. Such innovations are not able to be implemented or used satisfactorily

    with current attitudes and behaviours. Change can be achieved through passive means or forced using

    regulatory means such as bans, quotas, and taxation.

    Jamaica Scotland

    Promoting energy conservation in the

    workplace and in households

    By not subsidising high fuel and electricity

    costs (whether intentional or not), results in

    high energy costs which encourages

    conservation and the consumption of

    innovative products to reduce energy costs

    Incentivising low carbon energy investment

    Promoting energy conservation in the

    workplace and in households

    Implementing more stringent emission

    requirements for vehicles, industries, and

    power plants

    Plan to make energy efficiency in houses a

    national infrastructure priority

    Incentivising green energy investment

    Access to Funding, a factor necessary for all innovations, must be addressed for a successful

    innovative process. Funding can be in the form of attractive and specific loans, grants, and investors.

    Also, removing or reducing taxes can be seen as reducing the barrier of access to funds as it effectively

    reduces the amount of funding required. Also, access to funding can be improved by making it easier

    for entrepreneurs and entities to find funding sources.

  • Jamaica Scotland

    Green energy loans from private financial

    institutions with attractive interest rates

    Providing low interest loans through the

    through public sector financial institutions

    National Innovation Awards

    Caribbean Climate Innovation Centres

    Proof of Concept Grant

    First Angel Jamaica

    Jamaica Venture Capital Programme

    Providing fiscal and financial incentives

    Government grants

    Small business loans from private financial

    institutions

    Infrastructure and Innovation Fund

    Created a central point for access to

    business support services and funding

    sources

    Several venture capital entities

    Several angel investor networks

    Small Business Bonus Scheme (SBBS)

    Freezing council tax bills

    Low interest loans

    Government Policies, these play a critical role at each stage of the innovation process. Policies can

    help or deter the stimulation of conceptualisation, development and testing of solutions, and the ease

    of full-scale production or implementation. It is therefore important for the government to set the

    stage which allows an enabling environment to develop. Various government actions which have

    made it easier for the innovation process were stated earlier in the previous section. Some areas

    which policies and implementations by the government of Jamaica can improve are the ease of doing

    business (commendable strides have been made but there is room for improvement), tax incentives

    for start-ups, and high interest rates on loans (lower rates can be made available for low carbon

    companies).

  • Technical Barriers, these are idea specific and typically require investment, expertise, access to

    specialised equipment, and innovation.

    Jamaica Scotland

    Increasing partnerships between

    universities and the private sector.

    Skills and capacity building workshops

    Increasing partnerships between

    universities and the private sector.

    Skills and capacity building workshops

    Technology accelerators

    Knowledge exchange

    Research pooling

  • Conclusion

    The difference in the development status between Scotland and Jamaica is mirrored in the difference

    between the innovation support systems of both countries and perhaps, the two (development and

    innovation) share a cause and effect relationship. The Scottish innovation system shows more signs of

    specific focus, planning, organisation, and investment. Innovation is given a much higher level of

    importance which shows in the actions by the Scottish government and private sector. It is possible

    though, that the Jamaican government places high importance on innovation but the relatively small

    economy and financial woes limit their ability to support innovation on a larger scale. In terms of

    support at each stage in Jamaica, the weakest area is commercialisation and implementation. The

    other stages are supported fairly well but there is much room for improvement. In terms of barriers

    most work is needed in increasing access to venture capital funds, addressing technical barriers and

    developing a specific policy for innovation. Funding is available but high interest rates makes them not

    the most accessible.

  • Recommendations

    While the recent efforts made by the Jamaican government (for innovation in general) are

    commendable, there is much room for improvement (both general and especially for low carbon). A

    strategic approach should be taken to address the barriers to and create the nurturing environment

    for low carbon innovation. Such approach should be specific, thoroughly planned, and involve all

    stakeholders (public and private sectors, communities, foreign partners, etc.) Currently, there are no

    policies specific to low carbon innovation support and that is an excellent place to start. Such a policy

    should cover action plans for most if not all areas related to low carbon innovation. The government

    should make use of international best practices.

    To further encourage conceptualisation, the government should consider:

    Encouraging businesses to develop an innovative culture and be more proactive about solving

    their problems rather than just complain about problems like high energy prices

    Putting more pressure on academic institutions to shift knowledge supply to match

    knowledge demand that is based on problems in the country

    Adding innovation and entrepreneurial modules in secondary and tertiary-level institutions.

    Publicise the importance for and current innovation in Jamaica

    Set more specific low carbon goals to cover transport fuel, emissions, electricity generation,

    and energy use per capita measures

    To support the stages of feasibility assessment and development and testing, the government should

    consider:

    Working with appropriate entities to increase access to technologies and the internet

    Increasing accessibility of business support and advice

    Working with international partners to solve problems of lack of access to equipment and

    expertise

  • Encouraging more secondments and internship placements

    To support the commercialisation and implementation stage, the government should consider:

    Creating a one stop website for access to marketing, financial, and business experts

    Partnering with the private sector to create a low carbon specific start-up accelerator or

    incubator

    Establishing an agenda to increase the quality and exportation of Jamaican products and

    services

    To address the barrier of funding, the government should consider:

    Lowering interest rates on low carbon business loans

    Providing fiscal and financial incentives for businesses and investors that fund innovation and

    R&D

    To address technical barriers, the government should consider:

    Increase partnerships with universities and research centres abroad to encourage research

    pooling and knowledge exchange

    Build capacity for developing low carbon products locally, regionally, and internationally

    Access expertise present in multinational companies operating in the island

    Encourage multinational companies operating in the island to provide internships to locals

    It is highly recommended that the government work to see the creation of a one-stop low carbon

    innovation incubator (and/or accelerator) entity (such as ECCI) which provides support at all stages in

    the innovation process. This entity should be tasked with creating databases and relationships with

    researchers, consultants, angel investors, venture capitalists, financial institutions, market analysts,

    marketing managers, legal firms, and manufacturers. These databases will help to assist innovators at

  • the feasibility assessment, developing and testing, and commercialisation and implementation stages.

    The intent is to minimise time spent by innovators looking for assistance and concepts (marketing,

    financial, scientific, etc.) while maximising time spent on active progression. Also, this entity will,

    through the database and good relationships with relevant parties, address some technical and

    financial barriers. Frequent bulletins promoting low carbon technologies and practices, progress of

    low carbon start-ups, major low carbon achievements in the private and public sectors, and the

    impacts of carbon-intensive practices should be heavily publicised. The operating costs of this entity

    should be met with a combination of start-up equity income, government funds, member fees

    (members should be encouraged to get sponsorship from the private sector), fees from hosting events

    (conferences, workshops, etc.), selling publications, and other means.