Cleantech Companies Research Articles

AI Supports Cleantechs' Organizational Agility and Resource Orchestration

The business environment approaches the use of technologies to broaden its range of competitiveness in the market. Studies demonstrate through Artificial Intelligence new competitive paths and how these can orchestrate technologically sustainable resources. This paper aims to present a proposition model that identifies how Artificial Intelligence (AI) enhances Organizational Agility (OA) for Resource Orchestration (RO) in the context of clean technology companies and sustainable development goals (SDGs). A qualitative, multiple case study research was conducted with 22 semi-structured interviews from 17 clean technology companies in the areas of renewable energy, energy commercialization, energy efficiency, sanitation, and water treatment. Content analysis was used to analyze the data. AI encourages AO to OR, also pointing out new categories (findings) such as: Technology and Digital Skills, System Dynamics, and Accuracy for developing innovative products and services in Cleantechs. This study contributes to the literature with a new model of AI and OA, Orchestrating Resources through Digital and Technology Competencies, providing Dynamics between Learning Systems and Accuracy for the development of products and services that aim to collaborate with the SDGs. Illustrate the strategic paths that Artificial Intelligence can take from the perspective of Machine Learning to address solutions for the energy and sanitation sectors, providing innovations. The originality of the work lies in the contextual articulation of the work between AI, AO and OR in the context of clean tech companies and SDGs.

O Processo Decisório para o Desenvolvimento da Inovação Sustentável Via Capacidades Dinâmicas nas Cleantechs

Abstract This article aims to present a model of how the decision-making process can drive the development of dynamic capabilities for generating sustainable innovation in cleantech companies. Cleantechs are highly technological organizations, one of whose main characteristics is little or no use of non-renewable resources to produce any type of product, service, or process. The use of these technologies and identification of opportunities in the market makes sustainable innovation the core competence of this type of company. A multiple case study was conducted with cleantechs using a qualitative approach, supported by the content analysis technique. The primary data collection was carried out via semi-structured interviews, between October of 2020 and December of 2021, using an interview script as a collection instrument. The results provide a model that illustrates how the decision-making process can drive the development of dynamic capabilities for generating sustainable innovations, by means of categories that reflect technological sustainability, spillover effects, and a drive toward digitalization in clean technologies. The scientific contribution of the study is the presentation of how organizations can restructure their business models and develop sustainable and technological innovations, digitally leapfrogging to address bottlenecks related to energy rationing, social inclusion through monitoring technologies, access to low-cost clean and renewable energy, and other solutions.

Driving Competitive Advantage in Cleantech Companies: A Model of Smart Regulation, Organizational Agility, and Technological Innovation

Context: Organizational environments have undergone major changes in the face of technological innovation advances in the industrial sectors. Looking at this context, technology startups have used increasingly technological and digital resources to delivery services and products with low or zero impact to the environment.
 Objective: The paper aims to present a propositional model that encompasses the theoretical lenses of Organizational Agility (OA) by boosting Diffusion of Technological Innovation (DTI) in companies and clean technology to obtain Competitive Advantage (CV).
 Methodology: A multiple case study with a qualitative approach was carried out with Cleantech organizations, supported by 22 semi-structured interviews from 17 clean technology companies in the areas of ​​renewable energy, energy efficiency and commercialization in addition to water treatment. The results were supported by the content analysis technique.
 Results: The AO can potentialize the DTI to achieve competitive advantage. Behind this, new categories were founded in this research: Agile Culture Values as a background for Digital Transformation to create a Smart Regulation to promote technological innovation in products and services at companies with sustainable solutions.
 Contribution: This article contributes with a new model matching by the perspective of OA modify the positioning of managers and founders, to amplify the diffuser scenario of innovation and technology in the organization, reverberating in new market positions. The scientific contribution lists a research program based on the emerging categories of work, flowing into advances in the research field of Cleantech Organizations.

Driving Competitive Advantage in Cleantech Companies: A Model of Smart Regulation, Organizational Agility, and Technological Innovation

Objective: The paper aims to present a propositional model that encompasses the theoretical lenses of Organizational Agility (OA) by boosting Diffusion of Technological Innovation (DTI) in companies and clean technology to obtain Competitive Advantage (CV). Methodology: A multiple case study with a qualitative approach was carried out with Cleantech organizations, supported by 22 semi-structured interviews from 17 clean technology companies in the areas of ​​renewable energy, energy efficiency and commercialization in addition to water treatment. The results were supported by the content analysis technique. Results: The AO can potentialize the DTI to achieve competitive advantage. Behind this, new categories were founded in this research: Agile Culture Values as a background for Digital Transformation to create a Smart Regulation to promote technological innovation in products and services at companies with sustainable solutions. Contribution: This article contributes with a new model matching by the perspective of OA modify the positioning of managers and founders, to amplify the diffuser scenario of innovation and technology in the organization, reverberating in new market positions. The scientific contribution lists a research program based on the emerging categories of work, flowing into advances in the research field of Cleantech Organizations.

Driving Competitive Advantage in Cleantech Companies: A Model of Smart Regulation, Organizational Agility, and Technological Innovation

Objective: The paper aims to present a propositional model that encompasses the theoretical lenses of Organizational Agility (OA) by boosting Diffusion of Technological Innovation (DTI) in companies and clean technology to obtain Competitive Advantage (CV).
 Methodology: A multiple case study with a qualitative approach was carried out with Cleantech organizations, supported by 22 semi-structured interviews from 17 clean technology companies in the areas of ​​renewable energy, energy efficiency and commercialization in addition to water treatment. The results were supported by the content analysis technique.
 Results: The AO can potentialize the DTI to achieve competitive advantage. Behind this, new categories were founded in this research: Agile Culture Values as a background for Digital Transformation to create a Smart Regulation to promote technological innovation in products and services at companies with sustainable solutions.
 Contribution: This article contributes with a new model matching by the perspective of OA modify the positioning of managers and founders, to amplify the diffuser scenario of innovation and technology in the organization, reverberating in new market positions. The scientific contribution lists a research program based on the emerging categories of work, flowing into advances in the research field of Cleantech Organizations.

The orchestration of dynamic capabilities in cleantech companies

PurposeThe aim of this article is to present a model for the orchestration of dynamic capabilities (ODCs) in cleantech companies that aim to obtain competitive advantage in the market.Design/methodology/approachThe authors present herein descriptive research guided by a qualitative multiple case study approach carried out with 12 cleantech companies.FindingsThe results have showed that the ODC model is present in the product/process cycle, thus providing new capabilities and generating sustainable competitive advantage through the research categories presented.Research limitations/implicationsThis study contributes to the literature on the ODCs through microfoundations based on evidence of companies inserted in technological and intensively dynamic contexts.Practical implicationsThis article demonstrates, through the ODC model, the main capabilities and characteristics of the assets of cleantech companies and how the process of renewing competencies to obtain competitive advantage occurs.Originality/valueThe ODC model utilizes technological resources in the product/process cycle. Asset specificity and the capacity for innovation allow cleantech companies to explore regulatory loopholes, making their sustainable model innovative and obtaining competitive advantage through the renewal of entrepreneurial capabilities and competencies.

Deconstruction of the Green Bubble during COVID-19 International Evidence

Bubbles are usually chaotic but can be predictable, provided their formation matches the log periodic power law (LPPL) with unique stylized facts. We investigated Green Bubble behaviour in the stock prices of a selection of stocks during the COVID-19 pandemic, namely, those with the highest market capitalization from a basket of North American and European green energy or clean tech companies and the S&P Global Clean Energy Index. Moreover, the biggest Exchange Traded Fund (TAN) by market capitalization was also considered. The examined period is from 31 December 2019 to 11 October 2021, during which we detected 35 Green Bubbles. All of these followed the LPPL signature while calibrated through the 2013 reformulated LPPL model. In addition, the average drawdown emerged as four times that of the regular S&P-500 stock index (108% vs. 27%) under stressed conditions, such as the COVID-19 pandemic (stylized fact). Finally, the aftermaths of Green Bubbles, unlike regular bubbles, are not destructive, as these bubbles increase economic activity and infrastructure spending and are hence beneficial for holistic growth (described as Social Bubble Hypothesis). We document that there are benefits in adapting greener and more sustainable business models in energy production. Green and sustainable finance offers benefits and opportunities for stock exchanges, especially for energy stocks. As a result, many businesses are focusing on sustainability and adopting an eco-friendly business model, which helps the environment, helps sustainability and attracts investors.

Oases in the valley of death

Government programmes such as the Advanced Research Projects Agency-Energy (ARPA-E) are designed to help cleantech companies overcome startup challenges and bring innovations to market. New analysis shows that support from ARPA-E has led to higher patenting rates but success in winning follow-up funding remains unclear.

Comments: Breathing Life Into Innovation

The calls for change and transition in the industry are ubiquitous and emanating from within and outside of the industry. The wide spectrum of the changes and the speed of implementation being demanded are dizzying and point to an undeniable but not insurmountable challenge: a need for balance. Is there room for change? Certainly. Mitigation of flaring and emissions, attention to sustainability, and technologies for more-efficient exploration, production, and operations are among the many advances continually being researched, developed, and applied. And, some would argue, the pace is too slow. Innovations arise from fresh ideas and move the needle on how our business is conducted. Digital technologies touch every aspect of exploration and production. Improvements in drilling and in understanding the dynamics of reservoirs led the wave of recent emerging innovations. The question now becomes where will the funding come from to push the needle further? Is it the case that the “easy” solutions have been developed and that the efficiencies sought now require the equivalent of scaling Mount Everest in innovation and adoption? Achieving a balance is necessary to produce fossil fuels with improved efficiencies and environmental stewardship - while relying on a lower price/bbl. Operators, large and small, have tightened their budgets and shifted priorities, and the economic slowdown has generally crippled global investment budgets. What’s left for R&D, new ventures, and startups? From 2006 to 2011, venture capital (VC) firms spent over $25 billion funding clean energy technology startups and lost more than half of that money, according to an MIT report in 2016. MIT concluded that cleantech companies developing new materials, hardware, chemicals, or processes were poorly suited for VC investment because they had long development timelines, required significant capital, and were unable to attract acquirers. Startups developing software solutions fared better. As a result, VCs have shifted investments in this sector from hardware and materials to software. A November 2019 JPT article highlighted investments by large producers and upstream venture firms of at least $70 million over a few months in seven emerging innovations. Of these, five were software products. A JPT article in January reported that from October 2019, a handful of startups raised a sum nearing a quarter of a billion dollars - the majority involved in software applications. In a recent SPE Live, Barbara Burger, the president of Chevron Technology Ventures, emphasized that technologies that can bring clear value to Chevron by improving its understanding of the subsurface, drive efficiencies in drilling, or ensure asset integrity have a chance of earning the company’s investment. She added that current market conditions are limiting new funding and leading CTV to … “prioritize more.” Investors are setting defined priorities to guide startups in identifying critical technology gaps. And startups are becoming judicious in their valuations and planning. Innovation and industry are redefining a balance to move both forward in achieving the goals of both.

The role of environmental policies in promoting venture capital investments in cleantech companies

The role of environmental policies in promoting venture capital investments in cleantech companies

The Role of Venture Capital in the Commercialization of Cleantech Companies

Venture Capital (VC) plays an important role in the success of their portfolio companies. Small- and medium-sized companies often struggle with the resources required to succeed in the market. vc not only helps companies with the required financing but also provides the knowledge, understanding and expertise required to excel in the market. The study explores vc non-financial value-added contributions in the commercialization of clean technologies. Cleantech is a term associated with the companies involved with technologies, products, processes or services that seek to lower the negative environmental impact by improving efficiencies, reducing waste, encouraging the use of sustainable sources and environmental protection. However, the success of companies operating in this sector, at times, becomes challenging since these technologies are often disruptive in nature, contest business-as-usual practices by inducing efficiencies in the current processes or radically transforming the existing infrastructures. This qualitative case study is based on five companies operating in the Finnish clean technology sector. Data is collected in the form of semi-structured interviews whereas within the case and cross-case analysis approach is adopted to gain a comprehensive understanding of the studied phenomena. This study delineated vc’s contribution to technology development, corporate governance, mentoring & industry expertise, recruitment, collaboration & internationalization, acquiring additional financing and certification effect. The findings of this research provide important insights for the industry specialists, managers as well as the scientists involved in this field of research.

The impacts of the sulphur emission regulation on the sulphur emission abatement innovation system in the Baltic Sea region

According to the Porter hypothesis, regulations on environmental emissions under certain conditions can promote eco-innovation. This is why the technological innovation systems (TIS) theory sees regulatory pressure as a major system function critical in the take-off phase. In other words, the design and timing of any regulation may be decisive for the regulatory outcome. The research seeks to provide empirical evidence on how the Baltic Sea Sulphur Emission Control Area (SECA) has impacted the technological innovation system within the Baltic Sea Region maritime sectors. The results (1) show that regulatory compliance gave a knowledge development that has made it possible for clean-tech companies to engage in entrepreneurial activities that created new markets, (2) empirically support the TIS theory and the Porter hypothesis, and (3) provide qualitative evidence on how businesses see environmental regulation.Graphical abstractThe innovation system for ship sulphur emission abatement.

Climate Policy and Clean Technology Innovation: Evidence from FITs Policy Influence on Global VC Renewable Energy Investment Success

This paper examines the impact of climate policy on technology transformation toward clean innovation in the context of private sector investment, providing empirical evidence supporting subsidy policy effect on alleviating global warming. In principle, the novelty of research root in that I provide conceptual view of efficient clean innovation, on which intuition discussion and supportive reasoning for utilizing sustainable VC success exit as appropriate proxy for clean technology progress along renewable energy investment value continuum were provide. I prove for validity by incorporating various green patent measurements into baseline regression model and result was robust. In practice, I analyze the global Venture Capital (VC) renewable energy investment success (proxy for cleantech entrepreneurship innovation) in relation to Feed-in-Tariffs (FITs) policy, I distinguish the empirical importance of FITs policy using variations in industry and VC participation, justifying industry exclusiveness and VC inclusive policy features. I hypothesize that FITs policy function by stimulating VC do a better job on soring and due diligence, along with enhancing portfolio company product market competition advantage; and accordingly, I construct specific test for individual pathways relying on VC characteristics, and prove for the coexistence of selecting explanation and product market competition explanation. I find strong and robust evidence that generous FITs policy significantly enhances sustainable VC investment performance, simulating clean technology innovation. Finally, in line with prior endogenous concerns, I exclude issues such as VC non-random matching, unrevealed latent variable concern and alternative explanations. I analyze research questions with multiple samples, including 1159 global VC investment in cleantech companies across 17 OECD countries as the major one, 541 cleantech project from developing economy, 1480 non-VC backed cleantech projects and 13891 VC backed projects from traditional sectors as supplemental samples.

Application of satellite-based sulfur dioxide observations to support the cleantech sector: Detecting emission reduction from copper smelters

Abstract In this study, we present the result of the application of space-based sulfur dioxide (SO2) observations to evaluate the efficacy of cleantech solutions in reducing air polluting emissions from metal smelting. We analyze the Ozone Monitoring Instrument (OMI) satellite-based SO2 observations over Tsumeb (Namibia) and Bor (Serbia) copper smelters, where two sulfur-capture plants, designed to transform gaseous SO2 emissions into sulfuric acid, were implemented in 2015. We observe a reduction in the annual SO2 emissions by up to 90% after 2015 at both smelters, as a result of the implementation of the sulfuric acid plants. The OMI-based emission estimates are mostly in line with those reported at facility-level and reproduce the same year-to-year variability. This variability is driven by the changes in the copper production, the sulfur-to-copper ratio and by the technology employed to reduce the SO2 emissions. OMI observations are directly used by the company operating the sulfuric acid plants to confirm the efficacy of the employed technology using independent satellite-based observations. The results demonstrate how satellite-based observations are able to detect relative changes in SO2 emissions and can be used to verify and complete existing emission informations. The approach presented here can be applied to other sources on global scale to support cleantech companies as well as decision-makers involved in environmental policies and sustainable development.

Canada backs cleantech companies

A diverse group of cleantech firms got a collective $11 million financial boost from Canada’s Ministry of Innovation, Science & Economic Development. The companies include two focused on water treatment: ClinnUp Technologies uses electricity and biological processes to clean municipal wastewater, and KmX Membrane Technologies is focused on wastewater at mining sites. Another firm, New Rubber Technologies, wants to turn scrap rubber and plastic into thermoplastic elastomers. Springpower International won funding for its low-cost process for making lithium-ion batteries.

Strategic interpretation on sustainability issues – eliciting cognitive maps of boards of directors

PurposeThe purpose of this paper is to examine the role of cognitive diversity on strategic issue interpretation among the boards of directors making sense of sustainability management. The study also investigated the centrality of the corporate sustainability issues to identify common interpretative patterns in the shared cognitive maps among the companies. In addition, the aim was to advance quantitative methods for the analysis of decision-makers’ cognition.Design/methodology/approachThe research was an exploratory study analyzing 43 individual cognitive maps collected through surveys from the boards of nine cleantech companies. For the elicitation of the cognitive maps, the study used the hybrid cognitive mapping technique. The diversity of the shared cognitive maps was analyzed using the distance ratio formula and the graph analysis method with eigenvector to measure the centrality of the strategic issue interpretation in the maps.FindingsThis study provides evidence through the analysis of distance ratios on the existence of cognitive diversity among companies within the same industry. Surprisingly, despite the cognitive diversity, the study identified strong common patterns on strategic issue interpretations among the companies. In addition, the study shows that the sustainability management issues have gained minor attention from the boards of directors.Research limitations/implicationsThe initial industry sample provided relatively restricted perspectives on managerial cognition, and to confirm the findings regarding the effects of industry on the shared cognitive maps of top decision-makers, wider industry-level data are needed.Practical implicationsThis study provides an approach to facilitate the process of strategic decision-making for top decision-makers by identifying the shared beliefs of the selected strategic theme and to concentrate on the most central strategic issues in the company and industry. It reveals asymmetry between the significance of sustainability issues in an open agenda and the real position of sustainability concepts in the shared cognitive maps in the green industry. Also, the study advances cognitive mapping techniques for application in the board’s decision-making.Originality/valueThis paper contributes to brightening the black box of corporate governance by shedding light on the interaction of the concepts of corporate sustainability and other key strategic issues within the shared cognitive maps of the boards. It also provides new empirical knowledge on top decision-making processes and the effects of cognitive diversity on the strategic issue interpretations within the corporate boards of the green industry, and it further develops the methodology for the quantification of cognitive diversity and the content of cognitive maps.

Leveraging Physical Assets for Value Creation Through Cleanweb Firms - The Finnish Cleantech Space in Transition

Cleantech has made a respectable comeback onto the global agenda of firms, investors and economic developers alike. In the midst of the resurgence, Finnish CleanTech has been recognized globally. Indeed, recent rankings placed Finland in the top-3 of global leaders in cleantech, along with Israel and the US. This paper takes a closer look at the Finnish commercial cleantech space and scrutinizes it in light of select indicators such as degree of specialization into cleantech, type of industrial activity, generation of value added, financial performance as well as type and volume of intellectual property generated. Three insights stand out: First, the Finnish cleantech space is dominated by manufacturing-driven businesses. Second, consumer-oriented technical innovations seem to be rare. And third, the engine of industrial renewal – the small and medium-sized firms – appears to struggle with financial sustainability. The ability to shift gears from manufacturing- to service-driven businesses may be compromised if the low financial viability of small and medium sized companies turns out to be more than a statistical anomaly. These firms have the capacity to transition conventional industry boundaries to develop novel business models and open new markets. Poor financial performance would impact long-term development of the cleantech space in Finland. Given the central role of information technology in cleantech 3.0 businesses, there is an opportunity to leverage the innovative capacity of the Finnish ICT industry to: (a) accelerate the adoption of green solutions, (b) drive economic growth, and (c) render cleantech companies not only profitable, but also attractive investments.

Are low carbon cities attractive to cleantech firms? Empirical evidence from a survey

This paper explores the business attractiveness of low carbon cities using a survey on cleantech firms. The results show that cleantech firms indicate neutral interest in developing physical presence in low carbon cities, even though they perceive positive effects of low carbon urban features on resident productivity and health. Business conditions that affect operating costs tend to have greater influences than market access factors, which are associated with the supply and demand of factors of production, on firms’ decisions to relocate to low carbon cities. Conventional policies such as intellectual property rights protection and the development of intellectual clusters remain critical in incentivizing research and development in low carbon technology in low carbon cities. In summary, the low carbon features of a city do not appear to have major advantages in attracting cleantech companies. The diffusion of low carbon cities is likely to be driven by public environmental policies rather than corporate demand in the near future.

No Financial Cleanup: A Study of Venture Capital Returns on Cleantech IPOs

We studied the financial returns of 52 venture-capital-backed cleantech companies that had IPOs between 2000 and 2010. The median IRR for the first round of venture capital was 26.1% with a range from -10.4% to 140.0%. The median IRR on the third round was 24.5% with a range from 8.1% to 184.6%. We found that the returns on venture capital invested in cleantech companies were not satisfactory because the median returns on our study fell way short of the 80% that venture capitalists expect for successful early-stage investments and the 40% for successful later stage ones. To put it in perspective, the median venture capital return of first round investments in Internet companies was 506.9%; in software companies 124.8%; and computer hardware companies 148.9%. We believe that a median annual return of around 25% is not high enough to sustain venture capital investment at its current level.

Legitimation of Cleantech Companies: Venture Capital Financing and Federal Government Funding

We studied 56 venture-capital-backed companies that received financial support from the U.S. Department of Energy. We argued that those companies derived their legitimacy with the DOE in large part from their lobbying in Washington and from their venture capital firms. We reasoned that the greater their legitimacy from the viewpoint of the DOE, the more federal funding they received. We found that the amount of federal funding correlated with the amount of venture capital and with the amount spent on lobbying, but not with the reputation of their venture capital firms. Companies received, on average, one dollar of federal funding for each dollar of venture capital.