Regional lead markets for environmental innovation

authored by

Sebastian Losacker, Ingo Liefner

Abstract

The success of environmental innovations and sustainability transitions critically depends on market formations and diffusion processes. As of today, the geography of transitions literature provides suitable terms and case study evidence that these processes are highly regional phenomena. However, pertinent conceptual frameworks such as the multi-level perspective, technological innovation systems, or the somewhat less prominent lead market concept lack an explicit regional perspective. This paper develops a regionalized framework (‘regional lead markets (RLM)’) in order to provide a more appropriate conceptual lens for analyses of regional transition and innovation diffusion processes. We argue that regional lead markets are determined by regulatory advantages, demand advantages and technological advantages. A regional lead market adopts a later successful innovation at an early stage and gains competitive advantage in the respective industry, driving national and international diffusion. We demonstrate the concept's applicability by providing illustrative evidence on Shanghai's lead market potential for waste management.

Organisation(s)

Institute of Economic and Human Geography

Type

Article

Journal

Environmental Innovation and Societal Transitions

Volume

37

Pages

120-139

No. of pages

20

Publication date

12.2020

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Renewable Energy, Sustainability and the Environment, Environmental Science (miscellaneous), Social Sciences (miscellaneous)

Sustainable Development Goals

SDG 7 - Affordable and Clean Energy

Electronic version(s)

https://doi.org/10.1016/j.eist.2020.08.003 (Access: Closed)