Innovation and institutional change: the transition to a sustainable ...
Innovation and institutional change: the transition to a sustainable ... Innovation and institutional change: the transition to a sustainable ...
Theoretical perspectives 39 sunk costs and the perceived impossibility and inefficiency of such a shift by the dominant actors (2002: 20). Using water and energy is a daily routine, which may be changed only through interruption of routines (power fall out or removal or home reconstruction project) or when discursive awareness awakens (aware of the skills necessary to uphold the system, linkages, power relationships). This discursive awareness can also be directed to the environmental impacts that characterise the present make-up of the system. The success of green electricity in the Netherlands, for example, suggests however that groups of consumers can change their routines to some extent if the mode of provision enables this and they acquire sufficient motivation and information. According to Van Vliet making visible both environmental impacts and the structures that uphold them provides a mechanism to open up the system for change. Van Vliet argues that “environmental monitoring can increase the visibility of systems of provision to its users, and thereby lower the threshold for environmental renewal” (2002: 131). Also important here is the symbolic dimension of consumption as an expression of culture: people use goods and services to relate to other people or groups. He further concludes that “environmental differentiation is a second core issue because it inherently marks a transition from uniform provision in network-bound systems towards dispersed, pluralist modes of provision. Such a transition is a prerequisite for the development of those environmental innovations that do not fit in the technological trajectories that characterise the phase of uniform provision” (2002: 131). The approach used by these ecological modernisation scholars is useful as it includes institutional contexts and processes into the explanation of environment oriented innovation and develops a research approach where the focus is on co-evolution between technical and institutional innovations emerging and reproduced in the networks which are studied. This type of network analysis is useful to understand patterns of change, although there is no specific attention for type of reform that can facilitate more radical changes. The approach is useful in analysing changes, but convinces less in explaining why these changes come about and why in these specific configurations. Moreover, there is some lack of specificity regarding the mechanisms through which environmental pressures lead to changes at the level of firms and their networks. Governance theory Governance theory has in the last decade analysed new forms of steering alternatives to hierarchical control models, especially more on co-operation focussed models in which governmental, non-governmental and private actors participate in mixed public and private networks (Mayntz, 1998). For example, environmental governance models emerge as alternatives to
40 Chapter 2 traditional forms of direct regulation because it becomes evident that conventional command-and-control models are not able to cope with ‘wicked’ environmental problems (Bressers, 1991; Bressers and Kuks, 2001, 2003). Governance points to the interdependence among actors, their interactions, and the rules associated with them. It also points to the importance of collaboration as “no single actor, public or private, has all knowledge and information required to solve complex, dynamic and diversified problems” (Kooiman, 1993:4). Governance theory recognises the increasing importance of civil society, for example, in co-setting the agenda in processes of local and global environmental change. Governance thus diverges from paradigms where either hierarchy or the market is the dominant organisational form, and emphasises the role of networks in organising relations between actors. Dominant processes of governing in networks concern negotiation, accommodation, concertation, co-operation and alliance formation, rather than the traditional processes of coercion and command and control. In environmental policy, the increasing interest in the concept of governance has shaped the emergence of cooperative environmental strategies between public and private actors. Examples are voluntary agreements between industry and government (Glasbergen, 1998) and the stimulation of environmental management in firms through the use of policy networks based on consensual steering models (De Bruijn and Lulofs, 2000). The involvement of partners such as national governments, business, and consumers is also seen as crucial in European environmental policy. The fifth Environmental Action Plan of the European Union for instance stresses the importance of shared responsibilities among governments, business and the general public out of the understanding that the ultimate goal of sustainable development can only be achieved by relevant actors working together in partnership (CEC, 1993: 113). Understanding the relation of the nature of governance to patterns of system innovation has more recently emerged as a research topic (Rotmans et al., 2000, 2001; Grin et al., 2003, 2004; Grin, 2004; Rotmans, 2005). Rotmans et al. (2000) argue that transitions commonly take place in four phases: predevelopment (with little visible change but ample experimentation), take-off (the system begins to shift as change gets under way), acceleration (structural change takes place through accumulation of socio-cultural, institutional and economic changes reacting to each other), and stabilisation. According to them the nature of government intervention should be tuned according to the phase in which the transition is. Rotmans et al. (2000, 2001) developed the notion of transition management which tries to orient existing dynamics towards transition goals chosen by society. The underlying idea is that through a focus on long term goals of sustainability and its attention to dynamics the conflict between long-term ambition and short-term concerns can
- Page 2 and 3: INNOVATION AND INSTITUTIONAL CHANGE
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Theoretical perspectives 39<br />
sunk costs <strong>and</strong> <strong>the</strong> perceived impossibility <strong>and</strong> inefficiency of such a shift by<br />
<strong>the</strong> dominant ac<strong>to</strong>rs (2002: 20). Using water <strong>and</strong> energy is a daily routine,<br />
which may be <strong>change</strong>d only through interruption of routines (power fall out<br />
or removal or home reconstruction project) or when discursive awareness<br />
awakens (aware of <strong>the</strong> skills necessary <strong>to</strong> uphold <strong>the</strong> system, linkages, power<br />
relationships). This discursive awareness can also be directed <strong>to</strong> <strong>the</strong><br />
environmental impacts that characterise <strong>the</strong> present make-up of <strong>the</strong> system.<br />
The success of green electricity in <strong>the</strong> Ne<strong>the</strong>rl<strong>and</strong>s, for example, suggests<br />
however that groups of consumers can <strong>change</strong> <strong>the</strong>ir routines <strong>to</strong> some extent<br />
if <strong>the</strong> mode of provision enables this <strong>and</strong> <strong>the</strong>y acquire sufficient motivation<br />
<strong>and</strong> information. According <strong>to</strong> Van Vliet making visible both environmental<br />
impacts <strong>and</strong> <strong>the</strong> structures that uphold <strong>the</strong>m provides a mechanism <strong>to</strong> open<br />
up <strong>the</strong> system for <strong>change</strong>. Van Vliet argues that “environmental moni<strong>to</strong>ring<br />
can increase <strong>the</strong> visibility of systems of provision <strong>to</strong> its users, <strong>and</strong> <strong>the</strong>reby<br />
lower <strong>the</strong> threshold for environmental renewal” (2002: 131). Also important<br />
here is <strong>the</strong> symbolic dimension of consumption as an expression of culture:<br />
people use goods <strong>and</strong> services <strong>to</strong> relate <strong>to</strong> o<strong>the</strong>r people or groups. He fur<strong>the</strong>r<br />
concludes that “environmental differentiation is a second core issue because<br />
it inherently marks a <strong>transition</strong> from uniform provision in network-bound<br />
systems <strong>to</strong>wards dispersed, pluralist modes of provision. Such a <strong>transition</strong> is<br />
a prerequisite for <strong>the</strong> development of those environmental innovations that<br />
do not fit in <strong>the</strong> technological trajec<strong>to</strong>ries that characterise <strong>the</strong> phase of<br />
uniform provision” (2002: 131).<br />
The approach used by <strong>the</strong>se ecological modernisation scholars is useful as it<br />
includes <strong>institutional</strong> contexts <strong>and</strong> processes in<strong>to</strong> <strong>the</strong> explanation of<br />
environment oriented innovation <strong>and</strong> develops a research approach where<br />
<strong>the</strong> focus is on co-evolution between technical <strong>and</strong> <strong>institutional</strong> innovations<br />
emerging <strong>and</strong> reproduced in <strong>the</strong> networks which are studied. This type of<br />
network analysis is useful <strong>to</strong> underst<strong>and</strong> patterns of <strong>change</strong>, although <strong>the</strong>re is<br />
no specific attention for type of reform that can facilitate more radical<br />
<strong>change</strong>s. The approach is useful in analysing <strong>change</strong>s, but convinces less in<br />
explaining why <strong>the</strong>se <strong>change</strong>s come about <strong>and</strong> why in <strong>the</strong>se specific<br />
configurations. Moreover, <strong>the</strong>re is some lack of specificity regarding <strong>the</strong><br />
mechanisms through which environmental pressures lead <strong>to</strong> <strong>change</strong>s at <strong>the</strong><br />
level of firms <strong>and</strong> <strong>the</strong>ir networks.<br />
Governance <strong>the</strong>ory<br />
Governance <strong>the</strong>ory has in <strong>the</strong> last decade analysed new forms of steering<br />
alternatives <strong>to</strong> hierarchical control models, especially more on co-operation<br />
focussed models in which governmental, non-governmental <strong>and</strong> private<br />
ac<strong>to</strong>rs participate in mixed public <strong>and</strong> private networks (Mayntz, 1998). For<br />
example, environmental governance models emerge as alternatives <strong>to</strong>