Innovation in the wood bio-energy sector in europe

This chapter aims to analyse sources of innovations for bio-energy at the firm level and to assess which policies have supported or impeded company innovations and business development. Our analyses are based on 14 firm-level cases from eight European countries. The case study data were collected in 2008 and 2009 using common interview guidelines. The cases represent companies engaged in activities that range from wood pellet and chip production to district heating, large-scale electricity production at a pulp mill site and other bio-energy business applications in Europe. As one might expect, the contents of the cases were diverse. Although the innovations analysed had different sources, in the majority of the cases the innovations were prompted either by emerging new market situations (e.g. rising fossil fuel prices) or new available woody biomass sources, or were driven by changes in company strategies or introduced and led by visionary managers. The case studies often stress the important roles of innovation champions, with their innovative charisma and excellent interpersonal skills. Also, policy and policy measures played an important role in many of the analysed cases. Based on the analysed results, we found that determined national policies and programmes supporting and providing favourable financial conditions for investments in the area of renewables boosted innovative activities in the use of woody biomass for energy purposes. © CAB International 2011. All rights reserved.