Green Innovation in Energy: Product, Process and Business Innovation Gains for Competitive Advantage
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Green Innovation in Energy: Product, Process and Business Innovation Gains for Competitive Advantage Shiva Hullavarad1, Nilima Hullavarad1, Ping Lan2 1 2
Office of Electronic Miniaturization, University of Alaska Fairbanks, Fairbanks, AK 99701 School of Management, University of Alaska Fairbanks, Fairbanks, AK 99775
ABSTRACT The paper addresses the “green innovation” in the non-fossil fuel energy industry. The objective of the study is to identify the changes in trends of non-fossil fuel energy industry demand, growth and opportunities. The study uses the databases such as patents, news events, income/financial statements to assess the company status and the track record of the industry. The research adopts the methodology of Innovation Radar (Sawhney, MIT Sloan Management Research, 2001) to assess the positioning of the dominant company and design in photovoltaic, geothermal and wind renewable energy industry. The study also summarizes the sustainable competitive advantages of some of the successful companies in the energy sector. This study correlates the gains in innovation tripartite (product, process, business) to the corporate competitive advantage. The companies selected in this study are based on the innovations leading to improve the product, process and business aspects and are evaluated in terms of market adaptability and profitability rather than technical excellence of the product offerings. Three major non-fossil fuel energy industries are selected for the study, (1) Photovoltaic (conversion of solar energy to electrical power), (2) Geothermal (conversion of subsurface heat energy in to electrical power) and (3) Wind (conversion of wind energy in to electrical power). The innovation radar studies indicate that the Photovoltaic industry is well positioned in the nonfossil energy sector through innovations in delivery and process. Geothermal energy is found to be integrated into the broader energy portfolio of the parent company and hence benefitted from the innovations in the supply chain but lacks the customer base. Wind energy industry is found to exhibit innovations in the product offerings through new solutions in smaller and lighter wind turbines capable of operating in geographical areas with low wind speed. INTRODUCTION With rising electricity, gas and heating oil prices the human civilization is exploring new energy resources for sustaining the existence for future generations. Enhanced energy demands lead to depleting fossil fuel energy resources at an ever faster rate and hence there has been drive to innovation in energy conversion in fossil and non-fossil energy production, storage, and transmission with the ultimate aim of cheaper energy prices and lower CO2 emission. There has been a tremendous interest gained in past 2 decades in harnessing energy from non-fossil fuels thus leading to a new industry in itself. The rabbit and turtle race between the fossil and nonfossil fuel energy adoption, prices and demand due to uncertainties in the consumer market has forced the busines
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