Conclusions on Sustainable Innovations

Abstract

The perspective of meeting demands for income and good environment culminated in the ideal of income growth, fair distribution of wealth and availability of environmental qualities referred to as sustainable development. Sustainable innovations are discussed, considered novel technology uses that generate welfare growth, in particular income and better environmental qualities. A fair distribution of wealth is a precondition for these. Herewith, the findings from the policymaking perspective are reviewed on the assumption that the successful innovations are unpredictable and that neither the market nor policy is the panacea. Public institutions can execute routines very well but are often risk avoiding, and market forces act usually myopic. Less regulations and managerial interventions but far-reaching individual and social demands for environmental qualities with freedom of actions and prices that reflect social costs of environment could generate sustainable innovations. Above all, policies are about creating conditions for the diversity of innovating tinkerers, artists, inventors, engineers, researchers, managers and entrepreneurs that pursue sustainable innovations in firms, social organisations and institutions. Economic growth and environmental qualities are positively linked when the diversity of innovators is fostered and collide when sustainable innovations are suppressed by the rent-seeking behaviour.