KF
Koen Frenken
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1
Navigating Twin Transitions
A Policy Framework to Align Digital Innovation with Sustainability, Applied to the Dutch Processing Industry
Policymakers are increasingly prioritizing twin transitions of digitalization and sustainability. However, recent academic literature indicates these transitions are often misaligned. This study contributes by constructing a policy framework based on sustainability transitions theory and technological innovation systems. We specify short-and long-term policy goals, intervention logics, and associated instruments that enhance alignment and prevent misalignment in twin transitions within industrial contexts. We present a technological and a socio-institutional approach that culminate into four complementary policy intervention logics. The technological approach influences the application areas of digital technologies to either directly yield sustainability gains (logic 1) or direct these technologies towards overcoming persistent barriers to sustainable innovation (logic 2). The socio-institutional approach addresses common barriers to digital and sustainable innovation for effective policy prioritization (logic 3). It also uses the unique system dynamics of Digital Innovation Systems to mitigate risks and leverage opportunities related to sustainable innovation barriers (logic 4). This framework is applied in a qualitative analysis of energy-intensive processing industries in the Netherlands.
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Policymakers are increasingly prioritizing twin transitions of digitalization and sustainability. However, recent academic literature indicates these transitions are often misaligned. This study contributes by constructing a policy framework based on sustainability transitions theory and technological innovation systems. We specify short-and long-term policy goals, intervention logics, and associated instruments that enhance alignment and prevent misalignment in twin transitions within industrial contexts. We present a technological and a socio-institutional approach that culminate into four complementary policy intervention logics. The technological approach influences the application areas of digital technologies to either directly yield sustainability gains (logic 1) or direct these technologies towards overcoming persistent barriers to sustainable innovation (logic 2). The socio-institutional approach addresses common barriers to digital and sustainable innovation for effective policy prioritization (logic 3). It also uses the unique system dynamics of Digital Innovation Systems to mitigate risks and leverage opportunities related to sustainable innovation barriers (logic 4). This framework is applied in a qualitative analysis of energy-intensive processing industries in the Netherlands.
The battle of the buzzwords
A comparative review of the circular economy and the sharing economy concepts
Journal article
(2021)
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Marvin Henry, Daan Schraven, Nancy Bocken, Koen Frenken, Marko Hekkert, Julian Kirchherr
Circular economy (CE) and sharing economy (SE) are much discussed concepts but potential links between them have not been examined systematically so far. The concepts’ popularity coupled with a lack of definitional consensus may hinder their potential to advance sustainability transitions. Hence, the first comparative bibliometric study of these two concepts was carried out. It was found that they share notable links in the fields of sustainability, business models, sustainable consumption and governance. Business model literature reveals links mostly in the realms of platform- and service-based activities. The field of SE has a strong consumer focus but, unlike CE, barely addressed rebound effects so far. Governance literature shows a general top-down dynamic driving CE, while SE is considered to be bottom-up. SE is conceptualized as a subset of CE which opens possibilities for mutual enrichment. The findings aim to provoke more dialogue between the CE and SE communities.
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Circular economy (CE) and sharing economy (SE) are much discussed concepts but potential links between them have not been examined systematically so far. The concepts’ popularity coupled with a lack of definitional consensus may hinder their potential to advance sustainability transitions. Hence, the first comparative bibliometric study of these two concepts was carried out. It was found that they share notable links in the fields of sustainability, business models, sustainable consumption and governance. Business model literature reveals links mostly in the realms of platform- and service-based activities. The field of SE has a strong consumer focus but, unlike CE, barely addressed rebound effects so far. Governance literature shows a general top-down dynamic driving CE, while SE is considered to be bottom-up. SE is conceptualized as a subset of CE which opens possibilities for mutual enrichment. The findings aim to provoke more dialogue between the CE and SE communities.
Journal article
(2020)
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Koen Frenken, Arnoud van Waes, Peter Pelzer, Magda Smink, Rinie van Est
This article examines the main public interests at stake with the rise of online platforms in the sharing economy and the gig economy. We do so by analyzing platforms in five sectors in the Netherlands: domestic cleaning (Helpling), taxi rides (UberPop), home restaurants (AirDnD), home sharing (Airbnb), and car sharing (SnappCar). The most salient public interests are a level playing field between platforms and industry incumbents, tax compliance, consumer protection, labor protection, and privacy protection. We develop four policy options (enforce, new regulation, deregulation, and toleration), and discuss the rationales for each option in safeguarding each public interest. We further stress that arguments supporting a particular policy option should take into account the sectoral context. We finally highlight the tension between the subsidiarity principle, which would call for local regulations as platforms mostly concern local transactions and innovation policies that aim to support innovation and a single digital market.
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This article examines the main public interests at stake with the rise of online platforms in the sharing economy and the gig economy. We do so by analyzing platforms in five sectors in the Netherlands: domestic cleaning (Helpling), taxi rides (UberPop), home restaurants (AirDnD), home sharing (Airbnb), and car sharing (SnappCar). The most salient public interests are a level playing field between platforms and industry incumbents, tax compliance, consumer protection, labor protection, and privacy protection. We develop four policy options (enforce, new regulation, deregulation, and toleration), and discuss the rationales for each option in safeguarding each public interest. We further stress that arguments supporting a particular policy option should take into account the sectoral context. We finally highlight the tension between the subsidiarity principle, which would call for local regulations as platforms mostly concern local transactions and innovation policies that aim to support innovation and a single digital market.
Journal article
(2020)
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Koen Frenken, Peter Pelzer
The rise of what is often referred to as the sharing economy is among the most daring challenges for cities around the world. Sharing platforms create opportunities for efficient market exchange, but also cause negative externalities for city dwellers. A challenge for city authorities is that platforms can be launched without ex ante assessment of externalities and public interests, leaving public debate and political deliberation ex post affairs. We call the platform innovation logic 'reverse technology assessment', which obstructs participatory planning and constructive technology assessment. We discuss the potential of an alternative policy framework known as 'right to challenge'. We end with a broader reflection on public policy regarding sharing platforms at different scalar levels, emphasizing local initiatives to develop alternative sharing platforms.
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The rise of what is often referred to as the sharing economy is among the most daring challenges for cities around the world. Sharing platforms create opportunities for efficient market exchange, but also cause negative externalities for city dwellers. A challenge for city authorities is that platforms can be launched without ex ante assessment of externalities and public interests, leaving public debate and political deliberation ex post affairs. We call the platform innovation logic 'reverse technology assessment', which obstructs participatory planning and constructive technology assessment. We discuss the potential of an alternative policy framework known as 'right to challenge'. We end with a broader reflection on public policy regarding sharing platforms at different scalar levels, emphasizing local initiatives to develop alternative sharing platforms.
Institutional entrepreneurship in the platform economy
How Uber tried (and failed) to change the Dutch taxi law
Journal article
(2019)
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Peter Pelzer, Koen Frenken, Wouter Boon
Platform innovations like Uber and Airbnb allow peers to transact outside established market institutions. From an institutional perspective, platform companies follow a reverse innovation process compared to innovation within traditional regulatory systems: they first launch their online platform and ask for government permission only later. We analyze the emergence of Uber as an institutional entrepreneur in The Netherlands and the strategies it employed in a failed attempt to get its UberPop service legalized through changes in Dutch taxi law. We conclude that Uber's failure to change the Dutch taxi law stemmed from the difficulty to leverage pragmatic legitimacy among users into favorable regulatory changes in a highly institutionalized regime, because Uber's institutional work strategies were not aligned.
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Platform innovations like Uber and Airbnb allow peers to transact outside established market institutions. From an institutional perspective, platform companies follow a reverse innovation process compared to innovation within traditional regulatory systems: they first launch their online platform and ask for government permission only later. We analyze the emergence of Uber as an institutional entrepreneur in The Netherlands and the strategies it employed in a failed attempt to get its UberPop service legalized through changes in Dutch taxi law. We conclude that Uber's failure to change the Dutch taxi law stemmed from the difficulty to leverage pragmatic legitimacy among users into favorable regulatory changes in a highly institutionalized regime, because Uber's institutional work strategies were not aligned.
This paper relates the cost-benefit analysis (CBA) results of transportation policy proposals in the Netherlands with the decision to implement or abandon the proposal. The aim of this study is to explore the relation between the CBA results and decision-making. Multinomial logit regression models and Latent Class Analysis are used in this paper as the statistical tools to identify associations between CBA results and decisions and to reveal unobservable classes underlying the CBA results and the decisions for projects. Analysis was carried out on 106 Netherlands CBA reports (2000–2012) containing 454 observations. Each observation is a CBA result of a transport project variant. In line with most of the international literature, this study cannot find a significant association between Net Present Values (NPVs) and the variants chosen in political decisions (after controlling for other relevant variables). However, a positive NPV does keep variants ‘pending’, preventing a negative decision.
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This paper relates the cost-benefit analysis (CBA) results of transportation policy proposals in the Netherlands with the decision to implement or abandon the proposal. The aim of this study is to explore the relation between the CBA results and decision-making. Multinomial logit regression models and Latent Class Analysis are used in this paper as the statistical tools to identify associations between CBA results and decisions and to reveal unobservable classes underlying the CBA results and the decisions for projects. Analysis was carried out on 106 Netherlands CBA reports (2000–2012) containing 454 observations. Each observation is a CBA result of a transport project variant. In line with most of the international literature, this study cannot find a significant association between Net Present Values (NPVs) and the variants chosen in political decisions (after controlling for other relevant variables). However, a positive NPV does keep variants ‘pending’, preventing a negative decision.
Faced with ever-increasing pressure to innovate, firms consider universities to be significant sources of knowledge. Such knowledge flow can take place in a variety of ways such as academic publications and contract research, but also in more collaborative modes such as joint research projects. This paper focuses on a specific collaborative model, in which firms and universities are involved together in a PhD project. We analyze the effects of project management, communication, and supervision characteristics on the success of such PhD projects using a survey conducted at Eindhoven University of Technology, the Netherlands. We conclude that management decisions, supervision and communication characteristics have a significant impact on the ultimate success of a project. Among other things, the choice of university supervisor plays a pivotal role. Success is more likely if there is joint decision-making by both university and partner. We believe our findings help universities and firms to collaborate successfully.
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Faced with ever-increasing pressure to innovate, firms consider universities to be significant sources of knowledge. Such knowledge flow can take place in a variety of ways such as academic publications and contract research, but also in more collaborative modes such as joint research projects. This paper focuses on a specific collaborative model, in which firms and universities are involved together in a PhD project. We analyze the effects of project management, communication, and supervision characteristics on the success of such PhD projects using a survey conducted at Eindhoven University of Technology, the Netherlands. We conclude that management decisions, supervision and communication characteristics have a significant impact on the ultimate success of a project. Among other things, the choice of university supervisor plays a pivotal role. Success is more likely if there is joint decision-making by both university and partner. We believe our findings help universities and firms to collaborate successfully.