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Supporting sustainable regional innovation and ecodesign
in SMEs
• context
• a practitioners perspective on SMEs
• the SMEs perspective
• recommendations for future strategies
Wales
• devolved administration of UK (1998)
• historically, manufacturing and mineral based
  industries
• currently, service sector and lower volume, value
  added production
• statutory obligation to promote sustainable
  development


“We aim to encourage ecodesign and sustainable
production and consumption in Wales”
Environment Strategy for Wales 2026, Welsh Assembly Government, 2006
Ecodesign Centre Wales
established in September 2006

small team of 5 (designers and engineers)

our role
build capacity and capabilities so that effective
ecodesign can happen in Wales
supporting ecodesign and sustainable innovation in SMEs
a tale of two cities?
or Dr. Jekyll and Mr. Hyde?
positive                                   negative
•   simple capital structure               •   lack of managerial and operational
                                               resources (including time, cost, skills)
•   entrepreneurial orientation / spirit
                                           •   failure of SME managers to act
•   flexible decision making structures
                                               strategically – insular and autonomous
•   organisational flexibility
                                           •   lack of awareness, training, and
•   close trust-based relationships with       motivation
    suppliers or subcontractors
                                           •   low absorptive capacity
•   needs based ad-hoc training
                                           •   uncertainty and poor appropriability
                                           •   “public-good” nature of investment in
                                               ecodesign
incremental v.s. radical v.s. disruptive v.s. sustainable
what about SMEs in Wales?
phase 1   • Cardiff Business School (LEED Unit)
          • “Design for growth survey” “potential growth index”
          • identified and ranked 250 businesses (sample of 2056)
              • managerial prioritisation of environmental issues
              • innovative capacity
              • skills development and training
              • networking



phase 2
          • select over 30 SMEs
              • combine key companies from stage one with
                design led SMEs
          • 3 concurrent workshops to explore
              • existing perceptions on ecodesign and sustainable
                business practice
              • required internal/external competencies
general observations
SMEs

• need inspiration to engage with ecodesign
    – non-standard drivers
• expect local knowledge from BSOs or intermediaries
• benefit from long-term relationships (not dependency)
    – negotiating risks, building capacity
• benefit from partnerships
    – industry as service provider
• listen to appropriate language
• require flexible financial support
recommendations (for Wales or similar)
• identify of focus areas for intervention – (innovation systems perspective)
• create platforms for the open sharing of knowledge and experiences
• build capacity in existing/current business support infrastructure
• embed ecodesign and sustainability in higher/further, professional
  training, etc
• build capacity in the indigenous design sector
• establishing a culture of policy learning
thank you

questions?

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Supporting sustainable regional innovation and ecodesign in SMEs

  • 1.
  • 2. Supporting sustainable regional innovation and ecodesign in SMEs • context • a practitioners perspective on SMEs • the SMEs perspective • recommendations for future strategies
  • 3. Wales • devolved administration of UK (1998) • historically, manufacturing and mineral based industries • currently, service sector and lower volume, value added production • statutory obligation to promote sustainable development “We aim to encourage ecodesign and sustainable production and consumption in Wales” Environment Strategy for Wales 2026, Welsh Assembly Government, 2006
  • 4. Ecodesign Centre Wales established in September 2006 small team of 5 (designers and engineers) our role build capacity and capabilities so that effective ecodesign can happen in Wales
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  • 6. supporting ecodesign and sustainable innovation in SMEs
  • 7. a tale of two cities?
  • 8. or Dr. Jekyll and Mr. Hyde?
  • 9. positive negative • simple capital structure • lack of managerial and operational resources (including time, cost, skills) • entrepreneurial orientation / spirit • failure of SME managers to act • flexible decision making structures strategically – insular and autonomous • organisational flexibility • lack of awareness, training, and • close trust-based relationships with motivation suppliers or subcontractors • low absorptive capacity • needs based ad-hoc training • uncertainty and poor appropriability • “public-good” nature of investment in ecodesign
  • 10. incremental v.s. radical v.s. disruptive v.s. sustainable
  • 11. what about SMEs in Wales?
  • 12. phase 1 • Cardiff Business School (LEED Unit) • “Design for growth survey” “potential growth index” • identified and ranked 250 businesses (sample of 2056) • managerial prioritisation of environmental issues • innovative capacity • skills development and training • networking phase 2 • select over 30 SMEs • combine key companies from stage one with design led SMEs • 3 concurrent workshops to explore • existing perceptions on ecodesign and sustainable business practice • required internal/external competencies
  • 13. general observations SMEs • need inspiration to engage with ecodesign – non-standard drivers • expect local knowledge from BSOs or intermediaries • benefit from long-term relationships (not dependency) – negotiating risks, building capacity • benefit from partnerships – industry as service provider • listen to appropriate language • require flexible financial support
  • 14. recommendations (for Wales or similar) • identify of focus areas for intervention – (innovation systems perspective) • create platforms for the open sharing of knowledge and experiences • build capacity in existing/current business support infrastructure • embed ecodesign and sustainability in higher/further, professional training, etc • build capacity in the indigenous design sector • establishing a culture of policy learning