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Green Nanotechnology in Nordic Construction Juni 2010 Green Nanotechnology in Nordic Construction Eco-innovation Strategies and Dynamics in Nordic Window Value Chains • The emergence of eco-innovation/the green market and the emergence of nanotechnology • How does the emergence of nanotechnology affect the eco-innovation dynamics? • Incentives, barriers and strategic response when facing possibly major changes in the reigning technological paradigms underlying the business. Authors: Maj Munch Andersen, Björn A. Sandén and Christopher Palmberg Green Nanotechnology in Nordic Construction Participants in the NICe project Green NanoTechnology in Nordic Construction (GNNC) Researchers: Maj Munch Andersen, Department of Management, Technical University of Denmark, project leader Björn A. Sandén, Environmental Systems Analysis, Department of Energy and Environment, Chalmers University of Technology Christopher Palmberg, Advansis Ltd. (Etlatieto Ltd. until 1.9. 2009) Nordic nano organisations responsible for dissemination activities: NaNet (The National Nanotechnology),coordinator Anne Hansen FinNano/Spinverse Consulting, programme director Pekka Koponen and Tom Crawley Nano-Øresund, coordinator Daniel Kronmann I Green Nanotechnology in Nordic Construction Title: Green Nanotechnology in Nordic Construction Eco-innovation Strategies and Dynamics in Nordic Window Value Chains Nordic Innovation Centre project number: 06242 Author(s): Maj Munch Andersen, Björn A. Sandén and Christopher Palmberg Institution(s): Technical University of Denmark, Chalmers University of Technology and Advansis Ltd. Abstract: This project analyzes Nordic trends in the development and industrial uptake of green nanotechno- logy in construction. The project applies an evolutionary economic perspective in analyzing the innovation dynamics and firm strategies in the window value chains in three Nordic countries, Denmark, Finland and Sweden. Hence the project investigates two pervasive parallel market trends: The emergence of the green market and the emergence of nanotechnology. The analysis investigates how a traditional economic sector such as the construction sector reacts to such major trends. Conclusions are multiple, but among the most important are: Eco-innovation has become the perhaps most important driver for innovation in the construction sector. Search into eco-innovative business opportunities is intense among all companies along the three analyzed Nordic window chains. While we generally find a low uptake of nanotechnology in the construction sector in the Nordic countries we do find quite a high number of nanotech applications in the Nordic window chains. Eco-innovation is influencing strongly on the nanotech development. We see several examples of nano-enabled smart, multifunctional green solutions in the Nordic window chains already or about to having a commercial impact. Currently, it seems the greening of markets is beginning to affect the roles different companies play in the chain. We see a marked shift towards more sys- temic, smart eco-innovative solutions which fit well with nanotech opportunities. Overall, the recent greening of the market seems to be opening a window of opportunity for nanotechnology in the Nordic countries but the widespread discreet firm strategizing towards nanotechnology may reduce the exploitation of these. Topic/NICe Focus Area: ISSN: --- Language: Pages: English 98 Key words: Eco-innovation, climate mitigation, nanotechnology, green nanotechnology, evolutionary eco- nomics, construction, windows, smart windows, glass manufacture Distributed by: Contact person: Nordic Innovation Centre Maj Munch Andersen, Senior Research Scientist Stensberggata 25 Technical University of Denmark, Department of Management, NO-0170 Oslo Produktionstorvet Norway DTU – Bygning 424 2800 Kgs. Lyngby Direct tel.: +45 4525 4532 Mail: [email protected] www.man.dtu.dk/ II Green Nanotechnology in Nordic Construction Executive Summary This project analyzes Nordic trends in the development and application of green nanotechnology in construction. The project takes on an evolutionary economic perspective in analyzing the innovation dynamics and firm strate- gies in this area. Hence the project investigates two parallel market trends: The emergence of eco-innovation/the green market and the emergence of nanotechnology. The project seeks to analyze the interrelationship between these trends; i.e. does the rise of eco-innovation evoke the uptake of nanotechnology? And how does the emer- gence of nanotechnology affect the eco-innovation dynamics? The analysis focuses on investigating how a traditional economic sector such as the construction sector reacts to these new market opportunities. This project hence emphasizes the multifaceted and dynamic nature of the eco- nomic process in accordance with evolutionary economic theory. It investigates the incentives and barriers firms experience and their strategic response when facing possibly major changes in the reigning technological para- digms underlying their business. Within construction a case has been chosen looking into the window value chains in three Nordic countries, Den- mark, Finland and Sweden. The analyses are partly in depth firm analysis with companies along the window chain, based on a mixture of interviews, secondary data and bibliometric analysis. Additionally, the analysis builds on national surveys, mapping the nano innovation activities and their relevance for construction in the three countries. Conclusions are multiple, but among the most important are: Eco-innovation has become one of the major drivers for innovation in the construction industry in all three ana- lyzed Nordic window chains. While we generally find a low uptake of nanotechnology in the construction sector in the Nordic countries we do find quite a high number of nanotech applications in the Nordic window chains. Clearly, eco-innovation is influencing strongly on the nanotech development in the window chain. The need to outweigh possible nano-risk issues with societal (e.g. environmental) benefits in the nanotech area plays a role here. But it also seems that nanotechnology is offering novel green solutions to enduring problems in the construc- tion sector. We see several examples of nano-enabled smart, multifunctional green solutions in the window chains. E.g. nanotechnology is already improving energy efficiency, energy control, self-cleaning glass, de-polluting ma- terials/improving the indoor climate, environmentally friendly wood preservation and better light transmittance in glass of importance for the efficiency of solar energy and green houses. And we have seen a growing interest into green nanotech opportunities in e.g. anti-condensation materials, durable paints for wood and environmentally friendly metal corrosion treatment. Some of the nano-enabled products have been there for a surprisingly long time, 20-30 years (the nano-coatings applied by the big glass manufacturers), while many of the other applications are of a recent date. Our findings confirm a very slow nano-commercialization process despite the huge invest- ments into nanoscience internationally the last 15-20 years. The current policy regime has only partially stimulated eco-innovation in the construction sector. While regulation on energy efficiency towards buildings certainly has been a core innovation driver and let to major improvements in energy performance, it has also restricted innovation. The change towards more flexible policy measures in recent years in the construction and window area both internationally and nationally appears to be stimulating eco- innovation in new ways. The situation in the window chain with a few very large technically advanced international glass manufacturers, many small mostly traditional glass processing and window manufacturers and a range of diverse project oriented construction companies create a difficult environment for new high tech materials ventures. Both incumbents, start-ups and the really big multinational companies have show to play important but different roles in the devel- opment and uptake of nanotechnology in the window chain. Currently, it seems the greening of markets is affecting the economic organization considerably, and as yet stronger than nanotechnology is. The search for new green market opportunities is intense significantly affecting the competitive conditions and beginning to affect the roles of different companies in the chain. We see a marked shift towards more systemic, smart eco-innovative solutions which fit well with nanotech opportunities; i.e. eco- III Green Nanotechnology in Nordic Construction innovation strategizing is shifting from the window to the building. A result is that improvements in energy per- formance of windows are so considerable that windows have changed from being part of the problem to being part of the solution for achieving energy efficient buildings. Concerning business strategies there is though no explicit link between “green search” and “nano search” in the window chain to day. I.e. nanotechnology is not seen as a means to obtain eco-innovation as such. Generally many firms hold a discreet if not secretive strategy towards nanotechnology. There is much nanotech in the win- dow chain that is little known which may backlash on the market development for nanotechnology. The window case exemplifies waves in the economy where nanotech seems currently to be on the down-turn (though the picture is mixed here) and eco-innovation in the up-turn. The friction to eco-innovation on the market
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