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Unpacking investment decisions in biorefineries

Author

Listed:
  • Hansen, Teis

    (Department of Human Geography & CIRCLE, Lund University; Nordic Institute for Studies in Innovation, Research and Education (NIFU))

  • Coenen, Lars

    (CIRCLE, Lund University; Nordic Institute for Studies in Innovation, Research and Education (NIFU))

Abstract

The development and diffusion of biorefineries is a central factor in the transition towards a bioeconomy. Such biorefineries, which produce multiple products based on biological material, are heralded as an important opportunity for renewal of the pulp and paper industry in developed countries, facing increasing competition and environmental requirements. However, pulp and paper firms have only made few investments in biorefineries. Examining investment decision in Swedish and Finnish pulp and paper firms, this paper highlights the importance of considering decision-making processes within companies in order to understand the limited diffusion of biorefinery technologies. Further, the paper identifies organisational innovations in the form of new divisions, forward vertical integration, and creation of new value chain relations as central to commercialisation of biorefinery technologies. Theoretically, it argues that the technological innovation systems framework should be complemented with insights on decision-making processes within companies in order to understand the development of emerging technologies.

Suggested Citation

  • Hansen, Teis & Coenen, Lars, 2015. "Unpacking investment decisions in biorefineries," Papers in Innovation Studies 2015/34, Lund University, CIRCLE - Centre for Innovation Research.
  • Handle: RePEc:hhs:lucirc:2015_034
    as

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    References listed on IDEAS

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    Cited by:

    1. Bauer, Fredric & Coenen, Lars & Hansen, Teis & McCormick, Kes & Palgan, Yuliya Voytenko, 2016. "Technological innovation systems for biorefineries – A review of the literature," Papers in Innovation Studies 2016/27, Lund University, CIRCLE - Centre for Innovation Research.

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    More about this item

    Keywords

    Biorefineries; investment decisions; organisational innovation; pulp and paper industry;
    All these keywords.

    JEL classification:

    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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