A combined framework for responsible innovation strategies to overcome barriers to market-introduction and large-scale diffusion

Abstract

Research on the development and commercialization of hybrid protein, a combination of cultivated and plant-based protein, in the alternative protein transition has been increasing over the past few decades. This transition is increasingly urgent due to environmental impact and ethical issues around animal protein, as well as issues around food security and health impacts. Hybrid protein is argued to be a promising innovation to accelerate this transition as it helps overcome limitations that both cultivated protein and plant-based protein are facing.

The Netherlands is at the forefront of this development, however, the current regulations have not allowed the selling of hybrid protein yet in the European Union. At this moment, large-scale market introduction is unfeasible due to limited customer acceptance, insufficient knowledge of large-scale production, the high costs, the absence of a network that coordinates regulations and stakeholders and most importantly the absence of the regulations to allow it.

The aim of this master thesis research is to look into how to systematically integrate responsibility in the design of market entry and diffusion strategies for emerging innovations, using hybrid protein as a case study. By combining the meta-responsibility framework by Sonck et al. (2019) with the Technological Innovation System (TIS) framework for large-scale diffusion strategies by Ortt and Kamp (2022), a combined framework called the Responsible Market Development (RMD) framework is developed that serves as a tool to design responsible market entry and diffusion strategies. Where responsibilities of market actors are not incorporated in the TIS framework, a more sustainable framework is designed that does not only look at economic, but also social and environmental sustainability.

By applying the RMD framework, the barriers to market-introduction or large-scale diffusion are identified, strategies to overcome these barriers are proposed, conflicts and synergies between responsibilities are identified and combining these insights results in an output of the framework of responsible market-introduction strategies.

For the case of hybrid protein, the following barriers have been identified: ‘production system’, ‘network formation and coordination’, ‘product price’, ‘customers’ and ‘innovation-specific institutions’. The identified influencing conditions include ‘knowledge and awareness of technology’, ‘knowledge and awareness of application’, ‘macro-economic and strategic aspects’, ‘socio-cultural aspects’ and ‘accidents and events’. Based on these findings, the “top niche strategy”, “subsidized niche strategy”, “redesign niche strategy” and “geographic niche strategy” are proposed as most suitable pathways to market-introduction. Also the “redesign niche strategy” and “demo, experiment and develop strategy” are being applied already.

Results from the RMD proposed framework as well as expert interviews suggest that there is an order to which the strategies can most effective be applied as the barriers have a sequence. Advised is to first start with the “top niche strategy” or the “redesign niche strategy”, followed by the “subsidized niche strategy” if price is still a barrier. These proposed strategies have been adapted in a way that responsibilities are taken into account to make the innovation not only economically viable, but also socially and environmentally sustainable.