SME networks for highly energy-efficient housing: opportunities and challenges in the growth market

Panel: 5. Saving energy in buildings: The time to act is now

This is a peer-reviewed paper.

Authors:
Erwin Mlecnik, Faculty of Architecture and the Built Environment, Delft University of Technology, The Netherlands
Erwin Mlecnik, OTB Research Institute for the Built Environment, Delft University of Technology, Netherlands

Abstract

This study is concerned with the widespread diffusion of energy-efficient innovations in the construction sector, in particular the role of SMEs and SME networks in innovation in the Belgian context of the passive house development. It aims to assess opportunities available to SME networks, in particular those promoting highly energy-efficient or nearly zero-energy housing, as well as the barriers they face, when dealing with a growing market demand.

The research uses key elements of the theory of network development and innovation diffusion to analyse a Belgian SME network targeting actors concerning high energy-efficiency in the construction industry, using the passive house concept as an integrated approach. Data collected between 2002 and 2010 were gathered by document search, participant observation and action-based research including interviews.

A literature research discusses the importance of SME networks with a focus on innovation diffusion, and networks for the promotion of energy efficiency. The research analyses the characteristics of innovators in a case study and the changing network activities. These results allow analysing how the network was able to cross the gaps between market introduction, early adoption and growth market.

The study concludes that an SME innovation network, involving actors from different disciplines on a local level, and focussed on an integrated passive house approach, can be a foundation for market emergence. For such networks it is important to define coherent strategies in each subsequent phase (innovation, early adoption, late adoption) to bring about behaviour change in both supply and demand. A strong focus on future clients and micro-enterprises is needed to kick-start innovation, while larger companies contribute in an early adoption phase. In order to face the growth market, policy-related quality assurance is needed. The role of motivated agents is imperative for steering decision processes in each phase.