Accelerating green innovation through alternative investments
Accelerating green innovation through alternative investments is of high importance to strengthen the transition to a sustainable economy. Chapter 2 set the stage to describe the emergence of the cleantech VC investment category. It developed a venture capital life-cycle model and described the role of finance and policy for the transition towards sustainability (Avnimelech & Teubal, 2006; Markard et al., 2012; Penna & Geels, 2012). In addition it proved the significance of finance in the innovation field by showing the high influence of VC and VC’s investors on key turning points in industry emergence on accelerating green innovation (Kenney, 2011a; Mazzucato, 2013a; Wonglimpiyarat, 2011; Mina et al., 2013). Chapter 2 added a systemic perspective on the industry emergence to the research debate and recognized historical drivers, which accelerated green innovation.
Building on these results, chapter 3 extended the relevance of the finance sector for innovation. The exploratory interview based study showed how the whole “innovation finance value chain”, including institutional investors, VC/PE investors, and innovators, plays a role for green innovation (Kenney, 2011a; Wonglimpiyarat, 2011; Perez, 2002a; Hekkert et al., 2007; Johnson, 2001). Effects in innovation that do not accelerate but retard green innovation are unintended consequences and negative feedback effects, which happened between financial policy and innovation policy in the clean technology sector. These effects led to growing barriers to finance and thus less green innovation (Lovio, Mickwitz, & Heiskanen, 2011; Mazzucato, 2000; Peneder, 2010). Additionally, private investments into renewable energies are a core component of the transition to a green energy sector. The funds flowing in energy assets in OECD countries were shown in chapter 4. Most effective policy measures for the diffusion of renewables prove to be those directly impacting the return for investors. However, not only quantifiable factors induce investments but as well a © Springer Fachmedien Wiesbaden GmbH 2017
M. Migendt, Accelerating Green Innovation, Innovationsmanagement
und Entrepreneurship, DOI 10.1007/978-3-658-17251-0_6
reliable framework with a clear vision and long-term policy objectives are important to support renewable energies (Bergek, Mignon, & Sundberg, 2013b; Wustenhagen & Menichetti, 2012). Chapter 5 condensed the previous results by comparing the role of finance, innovation and policy in cases of clean technology industry development. It explained the circumstances needed to attract investments to an industry and added a perspective on industry evolution in clean technologies. This contributes to the understanding of accelerating factors for green innovation (Audretsch, 1995; Dosi, 1990; Florida & Kenney, 1988b).