In a compelling online webinar hosted on July 10, 2024, by Cleantech Group, industry experts delved into the transformative power of cleantech ecosystems.
The “Exploring Global Cleantech Ecosystems: Impact on Entrepreneurship, Innovation, and Sustainable Development” seminar offered a comprehensive guide to turning traditional business networks into thriving innovation ecosystems.
The discussion featured insights from Lucy Chatburn, Cleantech Group’s Lead Ecosystem Builder, and Bianca Dragomir, CEO of Avaesen Cluster, renowned for her transformative work in Valencia, Spain.
Cleantech Group, a leader in the cleantech sector, has been at the forefront of driving sustainable innovation. Founded in 2002, the organization has been pivotal in supporting startups, investors, and corporations to accelerate innovative solutions.
With a mission to catalyze the transition to a sustainable economy, Cleantech Group has a mission to provide essential insights, opportunities, and networking platforms for cleantech leaders worldwide.
Lucy Chatburn, Cleantech Group’s lead Ecosystem Builder. She works with clients globally on cleantech ecosystem strengthening, market evaluation and identification of growth opportunities and new business models enabled by innovation. She is based in Italy.
Five steps to transform a business network into an innovation ecosystem
Chatburn kicked off the webinar by emphasizing the significant role of ecosystem builders.
“If you are an ecosystem builder, there are practical steps you can take to turn your ecosystem into a hotspot for intrapreneurship, innovation, and sustainable development,” she shared.
Dragomir, known for her remarkable turnaround of the Avaesen Cluster in Valencia, shared five critical steps that she implemented to transform a struggling business network into a dynamic innovation ecosystem:
- Turn the cluster into a business generator
The Avaesen Cluster faced significant challenges, notably Spain’s controversial “tax on the sun,” which had severely hindered the solar industry. This tax discouraged investment in solar energy projects, stifling innovation and growth in renewable energy sectors across the region.
To counter this barrier, Bianca Dragomir and her team at the Avaesen Cluster developed a tailored action plan on a no-cure-no-pay basis.
This innovative approach was designed to address the specific needs of its members, focusing on overcoming regulatory hurdles and stimulating investment in energy-efficient technologies.
Bianca Dragomir, an award-winning cluster expert and public speaker on the power of innovation ecosystems for green transformation. She is the director of Cleantech for Iberia, a cluster initiative supported by Cleantech Group and Breakthrough Energy (Bill Gates Foundation) for the development and deployment of clean energy.
By pivoting the cluster’s focus from solely solar energy to encompassing energy efficiency across various sectors and international markets, new avenues for business development were opened.
“Spain’s tax on the sun killed the industry,” Bianca shared. “Our response was to create action plans that not only addressed these challenges but also created new opportunities for growth.”
2. Collaborate with the government for policy change
Working in collaboration with regional government entities, the Avaesen Cluster successfully advocated for policy changes that would benefit its ecosystem.
This strategic partnership led to partial compensation for the sun tax, easing financial burdens on renewable energy initiatives within the cluster.
Frozen wind farms, originally allocated to larger corporations but never developed, were unlocked for use by small communities and SMEs.
“We managed to unlock frozen wind farms that were allocated for big corporates and never built, and that were opened up to be built by small communities and SMEs,” Bianca noted.
This collaborative effort not only mitigated the adverse effects of existing policies but also paved the way for inclusive growth and development across the renewable energy sector.
3. Ignite innovation through entrepreneurship
A pivotal initiative spearheaded by the Avaesen Cluster was the launch of Spain’s first cleantech accelerator, in partnership with the European Innovation Institute Climate Initiative and other stakeholders.
This accelerator played a crucial role in fostering a culture of innovation and entrepreneurship within the region.
Over the span of four years, the accelerator facilitated the launch of 275 startups into the market, each contributing innovative solutions to global sustainability challenges.
“275 startups were launched in the market after four years,” Bianca shared while highlighting the accelerator’s significant impact on scaling startups in cleantech.
4. Leverage cross-sectoral collaboration
Recognizing the power of collaboration across different sectors, the Avaesen Cluster mobilized cleantech industries to address urban challenges through integrated, cross-sectoral approaches.
By creating strategic roadmaps for green transitions and attracting substantial investments, the cluster successfully positioned itself as a leader in sustainable urban development.
They shared how this collaborative strategy not only addressed pressing urban challenges but also catalyzed economic growth and job creation within local communities.
“We managed to leverage cities’ green investments of more than 200 million per year in the last years,” Bianca emphasized.
5. Scale up and create local hubs
Finally, the Avaesen Cluster focused on establishing local energy communities and attracting significant investments to create a financially self-sustaining business model.
One notable achievement was the successful attraction of Volkswagen’s cleantech manufacturing factory to Valencia, underscoring the region’s appeal as a hub for sustainable innovation.
“In just four years, the cluster built a financially self-sustained business model, zero dependent on public subsidies,” Bianca proudly stated.
Challenges and opportunities in ecosystem building
Chatburn acknowledged the challenges faced by innovators in accessing adequate ecosystem support. She illustrated the critical need for robust ecosystem frameworks to facilitate the transition of innovations from lab to market.
Despite these challenges, Cleantech Group’s ecosystem-building approach offers a structured pathway forward. By conducting rapid assessments, co-creating strategies with stakeholders, and fostering an environment conducive to innovation, ecosystems can develop resilient business models that drive sustainable solutions.
Looking ahead, Cleantech Group announced plans to establish a Cluster Academy, a center of excellence aimed at training and equipping ecosystem leaders with the skills and knowledge to navigate the complexities of ecosystem building effectively.
Attendees learned that through strategic networking, collaborative leadership, and innovative thinking, stakeholders can foster environments where clean technologies thrive, paving the way for a more resilient and sustainable future. This is true for communities around the world.
“The network is the only currency that matters when you build an ecosystem,” concluded Dragomir.
To download the complete webinar recording, click here.
Reya Shreya Rai is an editorial intern for Environment Journal. She is a writer and a student of Contemporary Journalism at Centennial College.
Featured image credit: Getty Images