Paper to be presented at the 35th DRUID Celebration Conference 2013, Barcelona, Spain, June 17-19 Climate Innovation ? The Case of the Central German Chemical Industry Wilfried Ehrenfeld Halle Institute for Economic Research Knowledge and Innovation
[email protected] Abstract Climate change, including its possible causes and consequences, is one of the most controversial and intensely discussed topics of our time. However, European businesses presently are less affected by the direct effects of climate change than by its indirect consequences. One central issue that arises in this context is the change in demands imposed by businesses? operational environment. This article contributes to the environmental innovation literature by providing a comprehensive evolutionary framework which allows an analysis of the drivers, determinants and outcomes of climate innovations implemented by companies. In this context, the prime issue is how the perception of climate change affects corporate innovation processes. Firstly, we consider the new demands imposed on the company by its stakeholders. Secondly, we discuss the innovative reactions to these impulses. Finally, we highlight the functions and relevance of certain internal and external determinants in the innovative process. Jelcodes:Q55,- 1. Introduction The possible causes and consequences of climate change are some of the most controversial and intensely discussed topics of our time. Today, European enterprises are more affected by the indirect consequences of climate change than by its direct effects such as extreme weather events. Some of these indirect consequences for industries arise from society’s perception of climate change, and by new demands imposed on companies by their operating environment.