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Session Overview
PS-2.10: Sectoral innovation system, industrial policy and developmentĀ 2
Thursday, 13/Oct/2016:
8:30am - 10:00am

Discussant: Michael Gastrow, Human Sciences Research Council
Location: Consulat Room I (Homann)

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Development Aid and the Evolution of Renewable Energy Technology Innovation Systems in Low-income Countries

Aschalew Demeke Tigabu

AfricaLics, Kenya

This paper analyses the role of official development assistance (ODA) in the evolution of Technological Innovation Systems (TISs) of renewable energy technologies (RETs) in Kenya and Rwanda. Balanced TISs are central to the diffusion of new technologies. We find that ODA has significantly influenced the diffusion of RETs. Donorsā€™ funding has been focused mainly on the development and diffusion of technical knowledge. We argue that this pattern of support has not fostered balanced and effective TISs, with a corresponding failure to achieve widespread diffusion. We then develop a conceptual proposal under which ODA would support weak TISs in low-income countries.

Obstacles to Environmental Innovation: An Assessment of SMEs in the Peripheral Regions of Lagos

Sanni Morufu Muhammed

National Centre for Technology Management, Nigeria

This paper examines barriers that limit the capability of small and medium-sized manufacturing firms to introduce environmental innovation in the peripheral regions of Lagos metropolis. Using evolutionary economics perspectives and innovation theory, the study categorised obstacles to environmental innovation among SMEs into cost, technological capability, market, organisation culture and regulatory environment. Results of the ordinal probit regression analysis reveal that technological capability and regulatory environment moderated by deep search for external knowledge and sector of the firm are the most critical factors. The results suggest that the more barriers the firms overcome, the more eco-innovative they become. The study recommends that policy makers should not only create a conducive environment for the SMEs but also nurture and support external sources of knowledge and networks where SMEs seek solutions to their challenges. Policy makers are also advised to be wary of proposing blanket eco-innovation policies across all the sectors of manufacturing firms rather they should envision policy mixes across the sectors that enhance competitive advantage in the emerging green market.

Government Policies, Technological Changes and Industrial Energy Efficiency: A Case of Pulp and Paper Industry in India

Sandeep Kumar Kujur

centre for development studies, India

The increase in industrial energy efficiency reduces the operating cost and increase asset value. It also benefits by conserving resources and reducing greenhouse gas emission, marshalling sustainable development. The improvement in energy efficiency at the sectoral level in turn translates into national macroeconomic gains including increase in GDP, ensuring energy security, and moderating international energy prices. This study examines the energy demand of energy-intensive pulp and paper (P&P) manufacturing in India. Using Annual Survey of Industries Commodity Classification on ASI data this study, perhaps for the first time, classify the P&P industry into different raw material based sectors, viz, wood-based P&P sector, agro-based P&P sector, and recycled paper-based P&P sector. It applies Log Mean Divisia Index to examine the contribution of the activity effect, structural effect and energy intensity effect on the changes in energy demand. The result shows that increase in the activity effect raises energy consumption in the industry during 2000-2010. Although the structural effect raises its energy use, its contribution is insignificant. The negative energy intensity effect stimulated by technological progress in the production process, however, reduces the total energy use change in the P&P industry in India. The policy evaluation and field survey based evidences reveals that technological changes in the production process of the P&P industry in India is induced by various public policies on industrial energy efficiency, environmental pollution and sustainable raw material consumption. Summing up, the study suggests policy measures that would further improve the use of energy and sustainability.

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