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Eco-innovation and Sustainability
Management

Sustainability is a phenomenon that must be pursued in a complex system of in-


terrelated elements of business, society and ecology. It is important to gain an
understanding of these elements, the interplay among them and the behavior of the
system. This book explores the business-societal-and-ecological system in which
sustainable innovation has to be envisioned, conceptualized, realized and im-
proved. Author Bart Bossink offers insight into the systematic coherence of drivers
of eco-innovation and sustainability utilizing a three-part approach: (1) eco- and
sustainable innovation in business is based on ideas and people who cooperatively
develop these ideas; (2) groups of people, organized in commercial rms, must
realize these ideas cooperatively and create the innovations that can conquer the
market; and (3) people from governmental, nongovernmental, not-for-prot, re-
search and commercial organizations can build institutional arrangements that
stimulate these sustainable innovations, changing both industry and society.
Adopting a managerial perspective and discussing concepts and methods to man-
age eco-innovation and sustainability in business, this book highlights the inter-
related roles of the individual, the rm, partnerships and business environments.
Researchers and practitioners who want to combine a commercial and economical
approach with an ethical and social ambition to create an ecologically sustainable
rm stand to learn much from these pages.

Bart Bossink is professor of technology and innovation at the Faculty of Eco-


nomic Sciences and Business Administration and at the Faculty of Natural Sciences
of VU University Amsterdam in the Netherlands. He obtained a master’s degree
in industrial engineering and management and a Ph.D. in civil engineering and
management from the University of Twente. He has more than twenty years of
research experience in the eld of eco-innovation and sustainability management.
Numerous papers of his have been published as articles in various scientic and
professional journals. One of his books was nominated for best management book
of the year in Belgium. In 2008 he received the outstanding paper award from the
Emerald Literati Network. His research is acknowledged and supported by both
governmental and commercial organizations, resulting in nancial support, tight
cooperation in research projects, and lectures and workshops for practitioners.
Routledge Studies in Innovation, Organization
and Technology

1 Innovation in the U.S. Service 9 Mobility and Technology


Sector in the Workplace
Michael P. Gallaher, Albert N. Link Edited by Donald Hislop
and Jeffrey E. Petrusa
10 Energizing Management
2 Information and Communications Through Innovation and
Technologies in Society Entrepreneurship
E-Living in a Digital Europe European Research and Practice
Edited by Ben Anderson, Malcolm Edited by Milé Terziovski
Brynin and Yoel Raban
11 Innovating for Sustainability
3 The Innovative Bureaucracy Green Entrepreneurship in
Bureaucracy in an Age of Fluidity Personal Mobility
Alexander Styhre Luca Berchicci

12 Organizational Capital
4 Innovations and Institutions
Modelling, Measuring and
An Institutional Perspective on the
Contextualising
Innovative Efforts of Banks and
Edited by Ahmed Bounfour
Insurance Companies
Patrick Vermeulen and Jorg Raab
13 User-Innovation
Barriers to Democratization
5 Knowledge and Innovation in and IP Licensing
Business and Industry Victor R. G. Braun and Cornelius
The Importance of Using Others Herstatt
Edited by Håkan Håkansson and
Alexandra Waluszewski 14 Working on Innovation
Edited by Christophe Midler, Guy
6 Knowledge and Innovation Minguet and Monique Vervaeke
A Comparative Study of the USA,
the UK and Japan 15 Organization in Open Source
Helen Brown Communities
At the Crossroads of the Gift and
7 Industrial Innovation in Japan Market Economies
Edited by Takuji Hara, Norio Evangelia Berdou
Kambayashi and Noboru
Matsushima 16 Theory and Practice of Triple
Helix Model in Developing
8 Managing and Marketing Countries
Radical Innovations Issues and Challenges
Marketing New Technology Edited by Mohammed Saad and
Birgitta Sandberg Girma Zawdie
17 Global Innovation in Emerging 23 Digital Virtual Consumption
Economies Edited by Mike Molesworth
Prasada Reddy and Janice Denegri-Knott

18 Creativity and Innovation 24 The Video Game Industry


in Business and Beyond Formation, Present State, and
Social Science Perspectives and Future
Policy Implications Edited by Peter Zackariasson
Edited by Leon Mann and Janet and Timothy Wilson
Chan
25 Marketing Technologies
19 Managing Networks of Creativity Corporate Cultures and
Edited by Fiorenza Belussi and Technological Change
Udo Staber Elena Simakova

20 Managing Environmentally 26 Public Sector Transformation


Sustainable Innovation through E-Government
Insights from the Construction Experiences from Europe and
Industry North America
Bart Bossink Edited by Vishanth Weerakkody
and Christopher G. Reddick
21 Management and Information
Technology 27 Innovation Policy Challenges
Challenges for the Modern for the 21st Century
Organization Edited by Deborah Cox and
Edited by Peter Dahlin and Peter John Rigby
Ekman
28 Eco-innovation and
22 Managing Organizational Sustainability Management
Ecologies Bart Bossink
Space, Management, and
Organizations
Edited by Keith Alexander and
Ilfryn Price
Eco-innovation and
Sustainability Management

Bart Bossink
First published 2012
by Routledge
711 Third Avenue, New York, NY 10017
Simultaneously published in the UK
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Routledge is an imprint of the Taylor & Francis Group,
an informa business
© 2012 Taylor & Francis
The right of Bart Bossink to be identied as author of this work has been
asserted by him in accordance with sections 77 and 78 of the Copyright,
Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
Trademark Notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identication and explanation
without intent to infringe.
Library of Congress Cataloging-in-Publication Data
Bossink, Bart, 1967–
Eco-innovation and sustainability management / by Bart Bossink.
p. cm. — (Routledge studies in innovation, organization
and technology ; 21)
Includes bibliographical references and index.
1. Management—Environmental aspects. 2. Technological
innovations—Environmental aspects. 3. Technological innovations—
Economic aspects. 4. Sustainable development. I. Title.
HD30.255.B67 2012
658.4'083—dc23
2012036202
ISBN: 978-0-415-81872-8 (hbk)
ISBN: 978-0-203-58098-1 (ebk)

Typeset in Sabon
by Apex CoVantage, LLC
Contents

List of Figures ix
List of Tables xi
Foreword xiii

1 Eco-innovation and Sustainability 1

2 Co-ideation by Leaders 16

3 Co-ideation by Entrepreneurs 28

4 Co-ideation by Champions 40

5 Co-innovation in Teams 51

6 Co-innovation in Projects 62

7 Co-innovation in Businesses 74

8 Co-innovation in Public-Private Partnerships 84

9 Co-institutionalization by Market and Society 96

10 Co-institutionalization by Knowledge and Technology 107

11 Co-institutionalization by Policy and Regulation 119

12 Eco-innovation and Sustainability Management 130

Appendices 139
Bibliography 163
Index 173
Figures

1.1 The eco-innovation and sustainability system. 3


2.1 Co-ideation by leaders. 17
3.1 Co-ideation by entrepreneurs. 29
4.1 Co-ideation by champions. 41
5.1 Co-innovation in teams. 52
6.1 Co-innovation in projects. 63
7.1 Co-innovation in businesses. 75
8.1 Co-innovation in public-private partnerships. 85
9.1 Co-institutionalization by market and society. 97
10.1 Co-institutionalization by knowledge and technology. 108
11.1 Co-institutionalization by policy and regulation. 120
12.1 The eco-innovation and sustainability management system. 131
Tables

1.1 Overview of Empirical Studies in This Book 11


1.2 Eco-innovation and Sustainability Management
in Perspective 14
2.1 Frame of Reference for Eco-innovative and Sustainable
Leadership 26
3.1 Frame of Reference for Eco-innovative and Sustainable
Entrepreneurship 38
4.1 Frame of Reference for Eco-innovative and Sustainable
Championship 49
5.1 Frame of Reference for Eco-innovative and Sustainable
Teams 61
6.1 Environmental Impact Indicators 71
6.2 Frame of Reference for Eco-innovative and Sustainable
Projects 72
7.1 Frame of Reference for Eco-innovative and Sustainable
Businesses 83
8.1 Frame of Reference for Eco-innovative and Sustainable
Public-Private Partnerships 94
9.1 Frame of Reference for Market and Society’s Inuence
on Eco- and Sustainable Innovation in Industry 105
10.1 Frame of Reference for Knowledge and Technology’s
Inuence on Eco- and Sustainable Innovation in Industry 117
11.1 Frame of Reference for Policy and Regulation’s Inuence
on Eco- and Sustainable Innovation in Industry 128
12.1 Managerial Roles, Goals and Measures in the System 132
12.2 Management Challenges and Business Opportunities 136
Foreword

Each year, in my graduate classes I ask young and bright business and sci-
ence students: “What will you choose when you get a car for free? Imagine
you get it from me. What would you choose? A gasoline car of a premium
brand with high CO2 emissions or a hybrid car of a less fancy brand but
with an electric motor with signicantly lower CO2 emissions?” The past
three years, the outcome has always been the same: 75 percent chose the
premium air polluter. Yes, the next generation chooses the unsustainable op-
tion. Each year I then start a conversation about the students’ motivations,
and their main reason is always the same. It is: “Premium brand! Premium
brand! Premium brand!” Every year I then immediately change the experi-
ment. I offer them two almost identical versions of the same premium-brand
car and ask them again: “What will you choose when you get the premium-
brand car for free? Imagine you will get it from me. What would you choose?
A gasoline-powered, unsustainable version or a hybrid, more sustainable
version?” Fifty percent still choose the unsustainable version. Yes, these
youngsters are less innovation-minded than I thought. “Why?” I ask them
repeatedly. “Because of the nice sound of a combustion engine. . . . Because
I am used to gasoline cars. . . . Because, what happens when the battery of that
eco-car fails?” These conversations do not confuse me anymore. Over the
past twenty years I have gotten used to these or similar kinds of interactions.
I have, for example, gotten used to the many different points of view that come
up when the sustainability issue is discussed. Positions vary from “nonsense:
you can’t eat sustainability” to “people-planet-prot” to “we must go back to
our natural position on the planet and listen to Mother Earth.” Even people,
who agree that humanity has to become eco-innovative and sustainable can
disagree on how to pursue this goal. Some think we have to inform the con-
sumer. Others say that we have to punish polluters and reward the best of
class. A third group wants to change national policy and regulation. A fourth
group wants to subsidize sustainable initiatives. Another group states that we
do not have to do anything and can simply rely on eco-innovative start-up
rms that will generate a completely new sustainable industry and society.
More than once, I was in the middle of discussions between representatives
of these groups, discussions that sometimes ended up in some kind of trench
warfare, where everybody stuck to his or her own opinion and was trying to
xiv Foreword
convince the other; with a lot of talking and not so much listening. As long
as people do not hurt each other and as long as each group tries to realize
sustainability according to its own ideas, I think that is okay. However, I
think we can do better. I even think that all these people are right at the same
time, that trench warfare is not necessary and that all these opinions and
approaches can be merged in a systematic and coherent approach.
Since sustainability is a phenomenon that has to be pursued in a com-
plex business-societal-and-ecological system that consists of interrelated ele-
ments, it is important to gain an understanding of the elements that make
up the system, of the interplay among the elements and of the behavior of
the system. It is thus of importance to know what the elements of the system
are and how these relate to one another. Therefore, this book explores the
business-societal-and-ecological system in which sustainable innovation has
to be envisioned, conceptualized, realized and improved. It can be of interest
to scholars, students and practitioners who want to gain an insight into the
systematic coherence of drivers of eco-innovation and sustainability in busi-
ness, industry and society. The main concepts of the book are that (1) eco-
and sustainable innovation in business is based on ideas and people who
cooperatively develop these ideas; (2) groups of people, organized in com-
mercial rms, realize these ideas cooperatively and create the innovations
that can conquer the market; and (3) people from governmental, nongov-
ernmental, not-for-prot, research and commercial organizations can build
institutional arrangements that stimulate these sustainable innovations to
grow large and thereby change industry and society.
In the coming years, unsustainable rms can make way for transparent,
clean and value-conscious rms, for eco-innovative and sustainable rms,
rms that deliver value to shareholders and stakeholders, that satisfy per-
sonal and societal needs, and that care for and support people, animals and
the green and blue environment. In the coming time, protable business
models can be those business models that are dedicated to prot in a much
broader sense; the broader sense of private and public well-being, health
and prosperity. Viable, sustainable businesses of the future can be the ones
that grow naturally, serve humanely, provide shelter and care for life and the
living. These businesses can have a well-meant respect for and gratitude to
planet Earth. The future sustainable industrial landscape can be a landscape
of tightly cooperating organizations that concentrate on a fair distribution
of production and consumption among people and on continuous reuse
and reprocessing of materials and energy resources—a motivating vision, I
think. I hope this book will contribute to the realization of this vision.
This book could not have been realized without the support I got from
Routledge and VU University Amsterdam. In particular, I thank Deepti
Agarwal, Terry Clague, Jerilyn Famighetti, Stacy Noto, Laura Stearns, Lau-
ren Verity and Jonas Voorzanger for their invaluable support, friendly advice,
kind answers to my e-mails and results-oriented handling of the manuscript.

Bart Bossink
1 Eco-innovation and Sustainability

1.1 INTRODUCTION

This book presents a model of eco-innovation and sustainability manage-


ment. To researchers this model provides a coherent overview of the main
elements of the eco-innovation and sustainability management system.
It proposes, evaluates and discusses relationships among these elements.
The model helps managers to decide which actions to take to develop eco-
innovation and sustainability in commercial rms, not-for-prot organiza-
tions, nongovernmental organizations and governmental organizations.
This book denes eco-innovation and sustainability management as the
development of new initiatives in an organization to sustain, improve and
renew the environmental, social and societal quality of its business processes
and the products and services these business processes produce. In this de-
nition, the measures and targets of environmental, social and societal qual-
ity can have various dimensions, such as reduced pollution and limited use
of natural resources; the provision of services not just to shareholders but to
all stakeholders of the organization; and contributions to societal problems,
including employment for the disabled and education for the untrained. In
this book, the “sustainability” concept covers this broad array of issues.
The model in this book introduces three basic managerial levels for
eco-innovation and sustainability: co-ideation, co-innovation and co-
institutionalization. Co-ideation is dened as the cooperation of individuals
who want to generate, develop and disseminate new sustainable thoughts, con-
cepts, plans and suggestions for business. Co-innovation is dened as the
cooperation of individuals who are situated in commercial organizations
and who want to transform new sustainable thoughts, concepts, plans and
suggestions for business into new viable, protable and working business
proposals in industry. Co-institutionalization is dened as the cooperation
of individuals who are situated in commercial, not-for-prot, nongovern-
mental and governmental organizations and who want to create structural
stimuli and arrangements that enable these new viable, protable and work-
ing business proposals to become important in industry. The three manage-
rial levels serve as the framework for the theory-building studies in this
2 Eco-innovation and Sustainability Management
book. This book addresses questions such as these: What can personal lead-
ership do for eco-innovation and sustainability? What is the role of entre-
preneurs who invest and believe in eco-innovation and sustainability? What
exactly can champions, that is, the persons who walk and talk innovation
all the time, do for eco-innovation and sustainability? The studies in this
book also elaborate on the contributions of teams, the functions of proj-
ects and project management, the embedding of teams and projects in rms
and cooperation and partnerships among commercial rms, not-for-prot
organizations, nongovernmental organizations and governmental organiza-
tions. It explores what these different forms of organization can do to im-
prove ecological, social and societal quality. Finally, this book delves into
the opportunities for people and organizations to institutionalize sustain-
able knowledge, revenues and achievements and create a powerful and large
business that is eco-innovative and sustainable. It deals with the impact of
markets, clients, customers, societal pressure groups, scientic and techno-
logical progress, and national policy and regulation.
This introductory chapter presents the three basic managerial levels of
the model of eco-innovation and sustainability management (Section 1.2).
It describes the methodology that is used to develop and build this model
(Section 1.3). It compares the model with two other established models in
the literature to put the characteristics into a broader theoretical perspective
(Section 1.4). It concludes with a brief summary (Section 1.5).

1.2 THE ECO-INNOVATION AND SUSTAINABILITY MODEL

As stated in the introduction, this section introduces the three basic levels at
which eco-innovation and sustainability management take place. The three
levels are co-ideation, co-innovation and co-institutionalization. Coopera-
tion is a key concept at all three levels. Co-ideation stands for all cooper-
ative action of individuals to develop ideas with innovation potential in
sustainability and that can be translated into effective solutions for business.
Co-innovation is the cooperative activity of individuals in organizations to
actually translate the ideas and solutions that originated at the co-ideation
level into protable businesses. Co-institutionalization is the cooperative
effort of public and private parties to integrate the successful sustainable
business proposals and businesses into the institutional environment and let
the new emerging sustainable businesses grow into mature and widespread
businesses with a large impact on industry and society.
The rst of three starting points of this book is that eco- and sustainable
innovation can be conceptualized as a linear process. The co-ideation level
for eco-innovation and sustainability can be perceived as the start of the in-
novation process and that is followed by co-innovation and completed with
co-institutionalization. Second, at the same time, this linear process can also
be seen as cyclical, in the sense that the linear process goes on continuously,
Eco-innovation and Sustainability 3

market
&
society

teams projects

leaders

champions entrepreneurs

co-ideation

policy public- knowledge


& private businesses &
regulation partnerships technology
co-innovation

co-institutionalization

Figure 1.1 The eco-innovation and sustainability system.

repeats itself over and over again and by this is a main driver of sustain-
able innovation and continuous improvement in organizations and society.
Third, the eco- and sustainable innovation process can also be seen as in-
terdependent, interactive and transformative, which means that aspects or
elements of the different levels inuence one another continuously. It im-
plies that co-ideation drives co-innovation and co-innovation drives co-
institutionalization but also that, in addition to this, co-innovation also drives
co-ideation and co-institutionalization drives co-innovation. On top of this,
several innovation cycles can occur at the same time and affect one another.
Figure 1.1 visualizes the model of linear, cyclic and interactive eco-
and sustainable innovation through co-ideation, co-innovation and co-
institutionalization. The three managerial levels in the system are symbolized
by the dotted circles. The dotted circle in the center represents the co-ideation
level. The surrounding dotted circle visualizes the co-innovation level. The
outer dotted circle represents the co-institutionalization level. The double-
headed arrows between the dotted circles visualize the linear, circular and
interactive inuence between these levels. The balls in the gure, situated on
the dotted circles, visualize the elements at each level. The co-ideation level
consists of leaders, champions and entrepreneurs; the co-innovation level
4 Eco-innovation and Sustainability Management
consists of teams, projects, businesses and public-private partnerships; and
the co-institutionalization level consists of market and society, knowledge
and technology, and policy and regulation. This section briey introduces
these elements. The next chapters in this book are successively dedicated to
one of these ten elements and delve into more details. The book concludes
with a chapter that interprets the model as a whole.

Co-ideation
Three distinctive individual roles or personal behaviors play a pivotal role
in the co-ideation process: the leader or leadership, the entrepreneur or en-
trepreneurship, and the champion or championship. The leaders, entrepre-
neurs and champions can be seen as the main drivers of the ideation process,
that is, the development of ideas to innovate in sustainability. They also
drive the co-ideation process by cooperating with one another and with
other members of their organizations in order to share and further develop
their thoughts and plans.

Leaders
Individual leadership directs a sustainable innovation team toward new
creative ideas. To direct a creative process, the leader can choose from a
repertoire of leadership styles and skills. A leader who wants to adopt a
charismatic style, for example, can choose to energize colleagues to innovate
and to have an accelerating effect on people’s innovative activity (Murphy
and Ensher, 2008; Paulsen, Maldonado, Callan and Ayoko, 2009). A leader
can also be more oriented toward formal management instruments and put
an emphasis on a strict structuring and control of sustainable innovation
activities of workers in the rm (Abernethy, Bouwens and Van Lent, 2010).
In addition, a leader who wants to act more strategically can use his or her
hierarchical power base to motivate, force or direct teams to innovate in
sustainability (Carmeli, Gelbard and Gefen, 2010). A leader can also choose
to have frequent contact and cooperation with coworkers. A leader who
likes to interact with colleagues can choose to empower others to innovate
and to enable them to become sustainable innovation leaders themselves
and help the ofcial leader (Crevani, Lindgren and Packendorff, 2010).

Entrepreneurs
Not just leadership alone fuels the ideation process. It is also the entrepre-
neur or individual with entrepreneurial spirit who contributes to ideation
and co-ideation. The entrepreneur can be seen as a main force behind the
ideation strategies and processes in organizations. The entrepreneur, for ex-
ample, can take the initiative to develop new products and services and can
be the one who is constantly looking for new ways to make money. It is
often mentioned that he or she always sees where new opportunities to sell
products arise, “smells” where the opportunities for new services are hidden
Eco-innovation and Sustainability 5
and starts projects and ventures to launch products and services and to open
markets (Beveridge and Guy, 2005). It can be said that the entrepreneur-
ial person is driven by the possibilities of successful innovation and is not
scared by the risks of failure (Dixon and Clifford, 2007; Klein Woolthuis,
2009). In today’s business landscape, socially driven entrepreneurship seems
to be becoming a powerful alternative to gain strategic advantage, to mobi-
lize resources, to raise the prole of the organizations involved and to gener-
ate income in new and emerging markets (Di Domenico and Haugh, 2007).

Champions
A third important driver of the ideation and co-ideation process is the in-
novation champion. Innovation champions are often seen as the creative
drivers of innovative ideas and initiatives. An innovation champion, for ex-
ample, endorses innovation by persuading others to join a project or, by
means of a lobby, getting top management on board for an innovative ven-
ture. The champion of innovation talks innovation all the time (Kelley and
Lee, 2010), has the expertise to innovate and likes to generate ideas (Sim,
Grifn, Price and Vojak, 2007). The innovation champion processes infor-
mation that generates new ideas, traces and shares knowledge and looks for
the trends from which to derive new ideas (Coakes and Smith, 2007).
In the literature, these three types of individuals are judged to be the main
drivers behind the ideation process of sustainable innovation. Cooperation
among these three types and cooperation with other colleagues in the orga-
nization can contribute to the co-ideation process in the rm.

Co-innovation
Four organizational forms play a crucial role in the co-innovation process:
the team, the project, the business and the public-private partnership. The
work in and cooperation between individuals in teams, projects, businesses
and public-private partnerships transform the ideas that originate at the co-
ideation level into new sustainable and protable business proposals. They
also bring the ideas to the next level: the co-innovation level, where the ideas
can be realized.

Teams
The leaders, entrepreneurs and champions of eco- and sustainable innova-
tion need to cooperate with others in organizational settings. They need an
organizational context; otherwise, their activities remain unnoticed. They,
for example, need a team of generalists and specialists to adopt their ideas
and develop these into new processes, products and services that actually
change and rejuvenate business. An idea that is promoted by a leader, an
entrepreneurial person or an innovation champion often has to be devel-
oped into something that can be made by the rm. This implies that a team
of colleagues can be assigned by a company to structurally and coherently
6 Eco-innovation and Sustainability Management
work on interesting ideas (Björkman, 2004; Hülsheger, Anderson and Sal-
gado, 2009). They can be asked to separate the creative ideas with market
potential from the ideas that will probably fail (Kratzer, Leenders and Van
Engelen, 2006; Mathisen and Torsheim, 2006). Research indicates that an
innovative team needs to be guided by a culture or spirit that supports the
search for and discovery of practical ways to turn ideas into something that
can be made by the rm (Adarves-Yorno, Postmes and Haslam, 2007; Mar-
tinsuo, 2009).

Projects
Often, projects are used as a main organizational form to structure a com-
pany’s rst attempt to develop a new innovative practice. A varied set of
management principles can be applied to coordinate and control sustain-
ably innovative activities in innovation projects. A project, for example, can
start with a well-prepared project plan and use this as the basic outline for
planning actions, deadlines and deliverables (Dorenbosch, Van Engen and
Verhagen, 2005; Dougherty, 2008). In addition to this, a project organiza-
tion can also choose to plan the innovations step by step and to commit all
participants to a collective schedule. The project can focus on agreements
and on monitoring progress from start to nish (Keegan and Turner, 2002;
Killen, Hunt and Kleinschmidt, 2008). Furthermore, the project organiza-
tion can develop a strategic view of what kind of newness it has to deliver
to the world outside (Newell, Goussevskaia, Swan, Bresnen and Obembe,
2008). It can dene and realize innovation goals that t with the strategy
of the rm (Kenney, 2003; Plambeck and Taylor, 2007). The innovation
project is often used to develop innovations with which rms can (re)gain a
competitive advantage in the marketplace. For this, it is important that the
project members listen to customer demand and use both customer and user
information to translate ideas into processes, products and services with
market potential (Beverland, 2005).

Businesses
The innovation teams and projects are mainly situated in rms. In addi-
tion, rms often run more projects at the same time and have portfolios of
various co-innovative projects. In modern business, it is common practice
for team members to participate in several projects at the same time, for
projects to be linked and for projects to evolve into other projects. In many
cases, different rms cooperate in innovation projects, for example to share
complementary knowledge, to serve larger markets or to gain power in the
competitive eld. Cooperative innovation among several rms, teams and
projects is a complex organizational challenge. Co-innovating rms try to
choose a new innovative direction and usually start to explore the possi-
bilities for going it alone. When that is not possible, companies that do
not want to give up explore the opportunities to co-innovate with others
(Dell’Era and Verganti, 2009; Spithoven, Claryse and Knockaert, 2010).
Eco-innovation and Sustainability 7
They then have to negotiate about the resources each organization has to
bring in and about the revenues each will get in return when the innova-
tions become a commercial success (Nieto and Santamaría, 2007; Vuola and
Hameri, 2006). To organize the co-innovative process, they have to develop
innovation plans with one another and establish joint ventures in which
these innovations are cooperatively developed, built (Rampersad, Quester
and Troshani, 2010; Vuola and Hameri, 2006) and sold (Calia, Guerrini
and Moura, 2007; Van de Vrande, De Jong, Vanhaverbeke and De Roche-
mont, 2009).

Public-Private Partnerships
Co-innovating rms often choose to experiment in a public-private part-
nership before they really decide to enter the market with new processes,
products and services (Harborne and Hendry, 2009; Hendry, Harborne and
Brown, 2010). In a pilot, demonstration or joint public-private experiment,
innovative sustainable options can be tested, developed and prepared for use
in regular business. Public-private partnerships enable governmental and
commercial organizations to experiment and gain experience with sustain-
able issues, technologies and co-innovative procedures and routines (Foxon,
Gross, Chase, Howes, Arnall and Anderson, 2005). Often the government
subsidizes an eco-innovative demonstration project and wants to cooperate
with commercial rms and help them to develop sustainable business. In
return, the government wants companies to invest equally in the project,
for example by means of investments in terms of man-hours, the input of
advanced knowledge and the inclusion of top managers. Public and private
actors who want to sustain a longer-term relationship build public-private
partnerships with clear and longer-term visions on sustainability, often
have some experience and knowledge with eco- and sustainable innovation
and share the same ambitions, for example a desire to create an important
new sustainable product or production process (Garvin and Bosso, 2008).
Public-private partnerships can last for many years and have a remarkable
inuence on the innovativeness of industry. Organizations that participate
in public-private partnerships develop new areas of competence in the eld
of sustainability that can give them a competitive advantage in a sustainable
market of the future.
These four organizational forms are the main drivers of the innova-
tion process for sustainability. Cooperative linkages and ties among teams,
projects, businesses and public-private partnerships contribute to the co-
innovation processes in and among organizations in industry.

Co-institutionalization
Three business environmental forces play an important role at the co-
institutionalization level: market and society, knowledge and technology,
and policy and regulation. Interaction among these business environmental
8 Eco-innovation and Sustainability Management
forces constitutes the co-institutional environment that enables commercial
rms to grow their emerging sustainable businesses into mature ones with a
large impact on industry and society.

Market and Society


The business environment exercises considerable inuence on organiza-
tions’ sustainable activities. It is often stated that rms innovate because the
market wants them to. In the past, rms’ strategies changed over the years
because markets continuously exerted pressure on companies to innovate.
Due to the emergence of new sustainability-aware customer groups that ask
for eco-innovative and sustainable products and services, rms may start to
realize that sustainability may have a lot of market potential. In business,
some highly innovative companies start to invest in eco- and sustainable
innovation and aim to open these emerging markets (Ozaki and Sevastya-
nova, 2011). In the meantime, governmental and commercial organizations
have to deal with increasing pressure from society to contribute to the solu-
tion of ecological, social and societal problems. Dominant environmental
sustainability issues that, for example, dominate societal discussions and
put pressure on companies to improve performance are pollution and emis-
sion control, protection of welfare and human rights, and a desire for a bet-
ter world for present and future generations (Brundtland and Khalid, 1987;
Esty, Levy, Srebotnjak and De Sherbinin, 2005).

Knowledge and Technology


Continuous technological progress enables rms to innovate and pushes
customers to buy technological innovations. A technological capability that
stimulates companies’ innovativeness is their capability to combine and re-
combine their existing knowledge repertoire with newly developed and ap-
propriated knowledge. Companies with a (re)combination strategy know
how to constantly introduce new and improved versions of their products
and services. They constantly refresh and renew their product and service
lines with the newest sustainable gadgets, features and more fundamental
changes in sustainability. Technological progress enables them to be leading
innovators in their eld of business. A company’s capability to be on the
front line and set trends can motivate customers to follow and adopt the
new products and services. Firms with a technology leadership strategy are
often seen as major change agents in industry (Kunz and Warren, 2011).

Policy and Regulation


Another key element at the co-institutionalization level is policy and regula-
tion. Depending on the political climate, the government plans and executes
environmental and sustainable policy and subsidizes, funds and regulates
sustainably innovative initiatives and programs in the country. Governmen-
tal action can have considerable inuence on industry. Research indicates
that when the government funds an innovation project and demands a high
Eco-innovation and Sustainability 9
level of innovation in return, this indeed has a signicant positive effect
on the project’s innovativeness (Bjørnåli and Gulbrandsen, 2010). National
regulation can be a powerful institutional tool. It can stimulate innovators
and discourage laggards from going on with unsustainable practices. Some-
times strict regulation can be necessary, for example, when emissions need
to be reduced. In other cases, performance-based regulation, that is, regula-
tion that stimulates organizations to innovate in a certain direction with-
out strictly dened norms and measures, appears to be more effective and
challenges rms to develop their own innovative solutions and approaches
(Wagner and Llerena, 2011).
These three business environmental forces can have a major inuence
on the eco-innovative and sustainable climate in industry and dene the
institutional conditions for eco-innovative and sustainable co-ideation and
co-innovation. Interaction between private rms and public organizations
shapes the industrial environment in which new co-innovative sustainable
practices can become institutionalized. It sets boundaries for deviating prac-
tices and enables sustainable business to grow.

1.3 RESEARCH METHODOLOGY

The eco-innovation and sustainability model is based on extensive litera-


ture research and on widespread empirical research in Dutch industry. The
research approach of Van Aken (2005) is used as the basic methodology
to develop the model. One of the basic principles of Van Aken’s (2005)
research methodology is that theoretical and empirical research can be con-
ducted to construct a model, heuristic or theory that serves as a guideline or
frame of reference for managers and that enables them to act and to man-
age a practical setting. The aim of this book thus is to design a theory-based
and empirically grounded model of the process of eco-innovation and sus-
tainability in industry. The book aims to provide insights for practitioners
into how eco- and sustainable innovation can be controlled and managed.
To researchers, the model aims to enable and guide further research into
the workings of eco-innovation and sustainability systems. In line with this,
the research in this book consists of three interrelated steps, that is: (1)
shaping the research model, (2) conducting additional theoretical and em-
pirical studies, and (3) analyzing and synthesizing the studies’ outcomes
into a coherent model.

Step 1. Shaping the Research Model


The research model is based on twenty years of theoretical and empirical
research into eco-innovation management processes in the Dutch house
building industry (Bossink, 2002a, b, c; 2004a, b; 2007a, b; 2008; 2009a, b;
2011a, b; Bossink and Brouwers, 1996). Previous publications in this research
10 Eco-innovation and Sustainability Management
trajectory analyze and discuss the function of leaders (Bossink, 2004a;
2007a; 2011a), entrepreneurs (Bossink, 2011a, b), champions (Bossink,
2004a; 2007a; 2011a), teams (Bossink, 2002b; 2011a), projects (Bossink,
2002b; 2011a; Bossink and Brouwers, 1996), businesses (Bossink, 2002c;
2011a), public-private partnerships (Bossink, 2002a; 2007b; 2008; 2009a,
b; 2011a), market and society (Bossink, 2004b; 2011a), knowledge and tech-
nology (Bossink, 2004b; 2011a) and policy and regulation (Bossink, 2002a;
2004b; 2011a) in the eco- and sustainable innovation system of Dutch house
building. A synthesis of the elements into a coherent model that describes the
eco- and sustainable innovation system is published in Bossink (2011a) (for a
summary of some of the main conclusions of this study see Appendix 1). The
model claims analytical value for research and practice in similar settings,
that is, the building industries and project-based industries. However, the
question remains whether and to what degree the model can claim analytical
validity for industrial settings other than the building industries and project-
based industries. This question is the point of departure of the research in
this book (Van Aken, 2005). The book builds on the results from the previ-
ous studies of Bossink, conducts additional theoretical research in (eco and
sustainable) innovation management literature and carries out new explor-
atory empirical research in several other sectors of Dutch industry. It aims
to de-sign a model with increased analytical validity for industry in general.

Step 2. Conducting Additional Theoretical and Empirical Studies


Additional theoretical studies are conducted with respect to all elements
of the model (co-ideation: leaders, entrepreneurs and champions; co-in-
novation: teams, projects, businesses and public-private partnerships; co-
institutionalization: markets and society, knowledge and technology, and
policy and regulation). Literature databases are consulted for publications
on ecological, green, social, societal and sustainable innovation in business
and industry and for each element of the model. In addition to this, for all
elements of the model, except for the champions element, additional empiri-
cal studies are conducted, mainly by interviewing managers and experts in
various industries in the Netherlands. Table 1.1 gives an overview of the
new empirical material that is used in this book.
All empirical research is conducted by master’s-degree students and
supervised by the author of this book. The interviews are taken, recorded
and analyzed by students in the master’s-degree program in business admin-
istration at VU University Amsterdam. The interviews are based on open
questions related to the main elements of the model of eco-innovation and
sustainability. The interviewees are given maximum freedom to elaborate
on issues that relate to the elements of the model. This facilitated in-depth
conversations between researcher and interviewee. The interviews are re-
corded, transcribed and either manually coded and analyzed or coded and
analyzed with the help of computer software (Atlas.ti; MAXQDA; NVivo).
Eco-innovation and Sustainability 11
Table 1.1 Overview of Empirical Studies in this Book
Interviews
# Expert interpreted and
interviews Industry Reported by quoted in chapter

6 Horticulture Brockhoff (2011) 2


10 Various industries Klawer (2008) 3
6 Building Bossink (2011a) 4
10 Metal Van der Wiel (2010) 5
13 Banking Verloop (2008) 6
10 Various industries Mahawat Khan (2010) 7
10 Food De Bruijn (2009) 8
30 Various industries Indriani (2009) 9
9 Food De Swaaf (2008) 10
10 Trade Roeloffzen (2010) 11

The original reports can be obtained from the website http://www.ub.vu.nl.


Empirical interpretations and quotations in this book are respectively based
on and taken from these reports. For readability, some quotations have been
edited, but the original scope and content remain intact.

Step 3. Analyzing and Synthesizing the Studies’ Outcomes


As a result of the additional theoretical and empirical studies all elements
of Bossink’s (2011a) model are articulated, adjusted, complemented or
changed, resulting in an model of eco-innovation and sustainability with
increased analytical value for industry (see Figure 1.1).

1.4 COMPARISON WITH OTHER APPROACHES

To put the model of eco-innovation and sustainability management into a


broader theoretical perspective this section compares the model with two
other streams in the literature. The model will be compared with the na-
tional environmental planning approach and the national systems of inno-
vation stream. This comparison results in an overview of similarities and
differences. The section starts with a description of the basic aspects of the
two alternative theoretical approaches and continues with the comparison.

National Environmental Policy Planning


The rst approach to be summarized here is the national environmental
policy planning approach. In 2006, Kivimaa and Mickwitz introduced a co-
herent model of systemic eco-innovation. It is derived from Finnish practice
12 Eco-innovation and Sustainability Management
and claims analytical validity for other industrial countries. According to
Kivimaa and Mickwitz (2006), sustainable innovation starts with the devel-
opment of a general sustainable innovation plan for the country as a whole,
and this is made by ofcials from the authorities, universities and larger
rms. Once the plan is completed, the nation’s governmental and commer-
cial organizations can take the next step. They derive action plans from the
basic plans and can try to execute these. Kivimaa and Mickwitz (2006) de-
scribe and visualize environmental policy planning as a top-down process.
The basic sustainability plan is made on a central national level, and then
all cooperating organizations are supposed to work according to the guide-
lines of this plan. Kivimaa and Mickwitz (2006) propose that this top-down
system of environmental policy planning consists of three basic levels: pol-
icy strategies, policy instruments and policy outcomes. The rst basic level
thus is policy strategies. On this level, the government takes responsibility
and leads the process. Representatives of the government, national institu-
tions, research centers and commercial organizations strategically review
environmental policies of the past. They use the insights that result from
these reviews to develop a new environmental strategy for the nation. The
environmental policy strategy initiates and inuences a second level of the
national system, which is labeled policy instruments. At this level, represen-
tatives from governmental, institutional, scientic and commercial organi-
zations dene several large national strategic environmental programs. The
environmental programs consist of broad portfolios of environmental tech-
nology and projects and comprise a coherent set of assigned environmen-
tal objectives and allocated nancial and human resources. The programs
initiate the third level of the system, which is called policy outcomes. On
this level, both fundamental and more applied research and development
(R&D) projects are planned and executed. Governmental, institutional,
scientic and commercial organizations cooperatively develop new innova-
tive environmental technologies and practices. These eco-technologies and
-practices then have to diffuse to other rms in the nation’s industry. The
impact of this top-down system of national environmental policy planning
can be measured periodically and becomes the starting point for a new na-
tionwide and top-down process of environmental policy planning.

National Systems of Innovation


The second approach to be described here is the national systems of in-
novation approach. To a certain degree, the national systems of innovation
approach is comparable with Kivimaa and Mickwitz’s (2006) model of na-
tional environmental planning. Both build on the same types of actors, and
both propose that cooperation among these actors directly stimulates in-
novation on a national level. According to Bartholomew (1997), one of the
proponents of the national systems of innovation approach, the four basic
actor types of a national innovation system are the government, research
Eco-innovation and Sustainability 13
institutions, educational institutions and industry. Lundvall, Johnson, An-
dersen and Dalum (2002) draw a similar picture. According to them, a na-
tional system of innovation consists of institutions, users and producers.
Bartholomew (1997) contends that research organizations and industrial
rms form the center of the nation’s innovation system, and government and
educational organizations can be seen as satellites that can strengthen the
research organizations’ and industrial rms’ function. The national innova-
tion system concentrates primarily on the development of knowledge and
the application of this knowledge in industry. Lundvall, Johnson, Andersen
and Dalum (2002) present a similar point of view. They contend that the
coordination, cooperation and interactive learning process among agents of
the institutions, users and producers forms a strong dynamic driver of na-
tional innovativeness. According to Bartholomew (1997), the centers of the
system are innovative because of the knowledge they possess and exploit.
The development of knowledge in the industrial rms, the rst center of
the innovation system, is stimulated by the accumulation of technological
knowledge in industrial sectors that are related and also by cooperation
with other organizations in R&D and innovation projects. The develop-
ment of a body of knowledge in the nation’s research organizations, which
is the second center of the innovation system, is supported by the research
centers’ international contacts and working relationships with foreign coun-
terparts, the nation’s tradition of funding of basic research and the national
practice of scientic education. Bartholomew (1997) also mentions several
other factors that stimulate the ow of knowledge between the two centers
of the countrywide improvement scheme: the commercial orientation of re-
search institutions and their collaboration with industrial rms, the mobility
of labor in the country, the willingness of venture capitalists to invest in in-
novative public-private partnerships and a government that actively invests
in a knowledge economy.

Eco-innovation and Sustainability Management in Perspective


Table 1.2 gives a concise overview of differences and similarities between
the model of eco-innovation and sustainability management in this book
and the two alternative approaches in the literature.
The rst row of Table 1.2 shows differences among all three approaches.
The innovation mechanism that forms the heart of the eco-innovation and
sustainability model in this book is of a managerial nature. It supposes that
eco-innovation and sustainability are something that can be planned, con-
trolled, organized and coordinated and that they can be shaped, controlled
and developed by key individuals such as entrepreneurs and project manag-
ers in commercial rms. This differs from the national environmental policy
approach, which builds on the assumption that environmental innovation
is a top-down policy planning process that is induced by the government. It
also differs from the national systems of innovation approach, which supposes
14 Eco-innovation and Sustainability Management
Table 1.2 Eco-innovation and Sustainability Management in Perspective
Eco-innovation and National National
sustainability environmental innovation
management policy planning systems

Innovation Management Top-down policy Knowledge ow


mechanism process induced planning process and learning
by key individuals induced by the processes
in rms government among
universities
and rms
Innovation Cooperation and Logical structure of Cooperation and
dynamic interaction strategies, programs interaction
and actions
Innovating Professionals and Policymakers Knowledge
entity rms workers
Innovation Eco-innovation and Eco-innovation Innovation in
scope sustainability the broadest
sense

that knowledge ow and learning processes among authorities, universities


and rms are key innovation mechanisms.
The second row of Table 1.2 shows a similarity between the model in
this book and the national systems of innovation approach and a difference
between the model in this book and the national environmental planning
approach. A basic assumption of the model of eco-innovation and sustain-
ability in this book is that the innovation process is linear, cyclic and inter-
active at the same time. The main innovation dynamic is cooperation and
interaction among actors, the organizations they represent and the institu-
tional structures wherein these organizations are situated. This differs from
the national environmental policy planning approach. The main innova-
tion dynamic behind the national environmental policy planning approach
is that eco-innovation starts with a national policy, which is transformed
into action plans and projects in practice. It assumes that the actions are
logically derived from plans and that these plans stem logically from poli-
cies, strategies and vision statements. Last, this book’s eco-innovation and
sustainability model and the national innovation systems approach have in
common that both build on cooperation and interaction among actors as
the main dynamic that drives the innovation process.
The third row of Table 1.2 shows that all models mention different
entities as drivers of innovation in the system. The eco-innovation and
sustainability model in this book assumes that innovation thrives on the
enthusiasm, drive, condence, vision and hands-on mentality of profession-
als in organizations. The national environmental policy planning approach
Random documents with unrelated
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Appointments to office, methods of, 99-101
confirmation of, 270-271
presidential, 293-294
Appeals, judicial, 311-312
Appropriations in Congress, 463-465
Arbitration, of labor disputes, 409-410
compulsory, 410-411
international, 601-602
Aristotle, classification of governments by, 66-67
Armaments, the cost of, 563-564
Army, various divisions of the, 567-571
control of, in war, 571-572
Army in peace, 572-573
Articles of Confederation, 249-251, 287
Assessments for taxation, 456-457
Athletics, value of, in training citizens, 86-88
Attorney-General, office of, 299 n
Australian ballot, 132

Balance of power in Europe, 629


Ballot, history of the, 131-132
reform of, 132-133
preferential, 133-134
Banks, functions of, 434
organization of, 435-437
federal reserve, 437-439
work of, 439-442
See also Farm Loan Banks
Bargaining, collective, 405-406
Billboards, regulation of, 214-215
Bill of Rights, 261
Bimetallism, the controversy over, 428-430
Blacklists, industrial, 407
Blackstone’s Commentaries, 314 n
Bloc. See Agricultural bloc
Blue-sky laws, 446 n
Boards, in counties, 169-170
in cities, 192
in state government, 238-239
of education, 498
of health, 534
Bonds, defined and explained, 445 n
government, 466-467
serial, 469
Bonaparte, Napoleon, on the qualities of a good constitution,
258
Bosses, political, their origin, 29
their methods, 160-161
Boycotts in labor troubles, 407
Brindell Case, 404 n
Bryan, William J., on free silver, 430
Budgets, how made, 462-463
in Congress, 463-465
Buildings, public, in cities, 212-214
Bureau of Animal Industry, 347
of Foreign and Domestic Commerce, 376
of Child Welfare, 415 n
of Education, 499
of American Republics, 617
Burke, Edmund, on the function of a representative, 98-99
Business taxes, 222

Cabinet, organization and functions of, 297-303


Campaign funds, 161-162
Capital, as a factor in production, 48-50
Center of population in the United States, 21
Chancery. See Equity
Charters, municipal, 186-190
Checks and balances, 232-234
Child labor, the restriction of, 414-415
Chief justice, duties of, in presidential impeachments, 270 n
China, economic resources of, 335
open door in, 618-620
Circuit courts, 313
Cities, drift of population to, 22-23
growth of, 183-184
character of population in, 184-186
relation to state, 186-190
government of, 190-199
administrative problems in, 203-222
taxation in, 455-457
City councils, 193-194
City government, development of, 182-184
present organization of, 184-199
See also Municipal problems
City-manager plan, 197-198
City planning, 206-298
Citizenship, rights of, 79
qualifications for, 81
dual, 82 n
obligations of, 83-84
training for, 84-88
Civil liberty, origin and nature of, 78-81
relation of direct legislation to, 111
Civil War, effect of, on relations between nation and states,
227
on the constitution, 261-262
martial law during, 574-575
naval progress during, 575 n
cost of pensions after, 583
danger of foreign intervention during, 608
Civil service, federal, 104
in counties, 173
See also Merit system
Clayton Act, 391, 408
Cleveland, adoption of city manager plan in, 197 n
Grover, use of armed forces in labor troubles by, 572-573
Closed shop, the question of, 408-409
Coal, the conservation of, 329-330
Codes of law, 315 n
Coinage in the United States, 427-430
Colbert, Jean-Baptiste, on the art of taxation, 455 n
Collective bargaining, 56, 405-406
Colleges, training for citizenship in, 87-88
Commerce, purposes of, 356-357
development of, 357-358
scope and nature of, 358-359
regulation of, 359-360
agencies of, 364-368
effect of tariffs on, 368-372
the encouragement of, 372-378
Commission government, in cities, 194-196
in states, 241-242
Commissions, public service, 480-481
Committees, party, 156-158
in the Senate, 268-269
in the House, 275
of conference, 277-278
on budget matters, 464-465
Communism, economic aspects of, 650-652
Common law, 314-315
Companies, commercial, 50-51
See also Holding companies
Competition, the nature of, 54
among public utilities, 475-476
Conciliation in labor disputes, 409-410
Confederation, Articles of, 249-251
Confirmation of appointments, 100
Congress, of the Confederation, 248-252, 257
of the United States, influence of public opinion on, 95-96
organization and work of, 266-282
committees in, 268-278
agricultural bloc in, 350-351
new budget system in, 464-465
of Vienna, 627-628
Conservation of natural resources, 326-336
Consular service, 373-374
Constitution of the United States, events leading to, 246-253
makers of, 254-255
nature of, 257-258
development of, 258-260
methods of amending, 260-262
Constitutions, state, 230-232
Consumption of wealth, 39-40
Constabulary, state, 217
Constitutional Convention of 1787, 253-257
Continental Congress, 248
Contract, freedom of, 55-56
Conventions, party, state, 129, 156-157
national, 158-159
Coroner, office of, 172
Corporations, the nature of, 50-51
citizenship of, 81 n
industrial, 384-385
control of, 389-393
Council, in cities, 193-194
County districts, 177
County government, 167-174
County manager plan, 170
Courtesy of the Senate, 270-271
Courts, county, 170-171
state, 239
federal, 308-313
Courts-martial, 573-574
Covenant. See League of Nations
Credit, agricultural, 348-349
relation of money to, 442-443
Credit, relation of prices to, 443-444
advantages and dangers of, 444-445
Crime, classifications of, 550-551
causes of, 552-553
methods of dealing with, 553-557
“Crime of 1873”, 429 n
“Cross of Gold” campaign, 430
Currency, paper, history of, 430-431
present forms of, 431-432
advantages of, 432-434
Currency Act (1900), 430
Custom, the influence of, 9-10

Darwin, Charles, theories of, 2-4


Debts, public, necessity of, 465-466
nature and amount of, 466-468
repayment of, 468-469
Declaration of Independence, influence of John Locke on,
64-65
assertion of civil rights in, 80
political doctrines of, 248-249
Defence, national, cost of, 563-564
need for, 564-567
methods of, 567-583
Degeneracy as a cause of poverty, 542
Demand and supply, relations of, 40
Democracy, true and false types, 68
progress of, 69
justification of, 70
relation of education to, 492-493
relation of socialism to, 657-658
achievements of, 658-660
citizen’s duty toward, 660-661
Departments, in city government, 191-192, 205-206
in state government, 238-239
in federal government, 299
Diminishing returns, the law of, 343
Diplomatic service, organization and functions of, 591-595
Direct legislation, progress of, 107-108
procedure in, 109-110
merits and defects of, 110-112
Disarmament, international, 576-577
See also Washington Conference
Disease, the germ theory of, 516-517
transmission of, 517-520
in industry, 521-522
the prevention of, 522-524
District attorney. See Prosecuting attorney
of Columbia, government of, 230 n
courts, federal, 313
Divine right, theory of, 63-64
Division of labor, 44-46
in agriculture, 344-345
of powers, 232-234
Divorce problem, 557-560
Domestic relations, courts of, 559
Drug evil, the, 526
Duties on imports, 459
See also Tariffs and Tariff problems

Economics, the subject-matter of, 38-39


Education, relation to democracy, 492-493
to personal efficiency, 493-494
purpose and value of, 494-495
growth of, 495-496
control and management of, 496-498
national government’s work for, 498-499
federal aid to, 499-500
problems of, 500-507
vocational, 507-508
Educational tests for voting, 122-124
Elections, in counties, 169
procedure at, 129-137
corrupt practices at, 137-138
of senators, 267-268
of representatives in Congress, 273-274
presidential, 288-290
See also Ballots, City Government, Voting
Emergency Fleet Corporation, 375
Employers’ liability, 411-412
England, local government in, 227
cabinet system in, 301
Environment, the influence of, 5-9
Equity, origin and nature of, 316-317
Espionage Act, the, 581
Europe, relations with, 613
Evolution, theory of, 1-5
in political institutions, 66
Excess profits, taxation of, 458-459
Exchange, the theory of, 53
Expatriation, the doctrine of, 83

Factories. See Industry


Family, as a fundamental social group, 11-12
its place in the evolution of government, 66
Far East, American interests in the, 617-618
Farm Loan Banks, 348-349
Farmers’ Alliance. See National Farmers’ Alliance
Institutes, 350
Farmer-Labor party, 351
Federalism, the nature of, 67-68
Federalist, The, 257
Federal reserve banks, organization and work of, 437-439
Trade Commission, 341-392
Filibusters, 278-279
Filtration of water supplies, 530-531
Fire prevention, the need for, 217-218
methods of, 218-219
Fisheries, economic importance of, 333
Fittest, survival of the, 3-4, 11
Food, the inspection of, 525-526
control of, in war time, 582
Foreign policy, American traditions relating to, 606-607
nature of, 587-590
control of, 590-591
how conducted, 591-602
Forests, economic importance of, 331
See also Reserves
Four Power Treaty, 619-620
Fourteen Points, the, 609-610
France, local government in, 227
Franchises, taxation of, 456
public service, 477-480
Freedom of speech in war time, 581-582
Free silver, the fight for, 428-430
Free trade, arguments for and against, 370-372

Garbage, disposal of, 527-528


Gary system, 506-507
General property tax, 455-456
“Gentlemen’s agreement”, with Japan, 32
in industry, 386
Geography, influence of, 8-9, 333-336
George, Henry, social views of, 461 n
Germany, social insurance in, 419
Gerrymander, origin and use of, 273
Gladstone, W. E., opinion of the national constitution, 256-
257
Gompers, Samuel, 405
Government, the importance of, 13
as a factor in production, 51-52
the basis of obedience to, 63-65
origin of, 65-66
classification of, 66-69
purpose of, 70-72
functions of, 72-73
the study of, 74
Governor, position and powers of, 237-238
Grand jury, 318
Granges. See Patrons of Husbandry
Greenbacks, the, 431
Guidance, vocational, 396-397
Guild operation, 488-489

Habeas corpus, the writ of, 317 n


Habit, influence of, 10
Hague Conferences, the, 577
Hamilton, Alexander, 255, 257
Report on Manufactures, 370
Hawaii, government of, 229 n
Hayes-Tilden election, 290 n
Highways in counties, 168
Hobbes, Thomas, defender of absolutism, 65
Holding companies, 387
Holy Alliance, 598-599
Home rule, municipal, 187-190
House of Representatives, federal, organization and work of,
272-283
Housing, municipal control of, 531-533

Ideals, national, economic influence of, 327


effect of urban growth on, 184-186
Illiteracy in the United States, 502 n
Immigration, the course of, 23-24
causes of, 25-26
effects of, 26-29
restriction of, 29-30, 32
Impeachments, federal, 269-270
Income taxes, 458-459
Increasing returns, law of, 388
Incidence of taxation, 451-452
Individualism as an economic system, 14, 73
Index numbers, 443 n
Industrial accidents, 411-412
courts, 410-411
democracy, 393-394
Revolution, nature of, 383-384
Revolution, effect on labor, 400-401, 414 n
Workers of the World (the I. W. W.), 405
Industry, definition of, 383
development and organization of, 384-386
combinations in, 386-389
government regulation of, 389-393
present-day problems of, 393-397
the hygiene of, 520-521
Inheritances, taxes on, 458
Initiative and referendum, origin and spread of, 107-108
how used, 109-110
value of, 110-111
objections to, 111-112
Injunctions, use of, in labor disputes, 407-408
Insular possessions, government of, 229-230
Insane, problem of the, 549-550
Insects as disease carriers, 518-519
Insurance, against accident, 413
against unemployment, 418
against old age, 419
Interest on invested capital, 49-50
Interior Department, its work, 299 n
International, The, 651-652
International law, nature and scope of, 588-590
Interstate commerce, growth of, 359-361
regulation of, 362-364
Commerce Commission, jurisdiction and work of, 363-364
Interpretation, development of the constitution by, 259-260

Jackson, Andrew, removals from office by, 102


Japan, relations with, 618-620
Japanese, problem of the, on Pacific slope, 32-33
Jefferson, Thomas, believer in social contract theory, 65
on entangling alliances, 598, 606
Johnson, Andrew, impeachment of, 270 n
Judicial procedure, 317-323
Judicial supremacy, the doctrine of, 310-311
Judges, selection and removal of, 239-240
Jukes, the, 542-543
Junior high schools and colleges, 502-503
Jury, grand, 318
trial, 318-319
merits and defects of, 317-321
Justice, Department of, its work, 299 n
Juvenile delinquency, 557

Kansas plan of arbitration, 410-411


Knights of Labor, 402-403

Labor, as a factor in production, 43-44


division of, 44-46
perishable nature of, 46-47
federal department of, 299 n
Labor in agriculture, 349
changes in the conditions of, 400-401
organization of, 401-403
American Federation of, 403-404
the radical element in, 404-405
methods and policies of, 405-410
problems of, 410-419
services of, during the World War, 419-420
relations of, to League of Nations, 637
Latin-America, relations with, 615-617
Law, branches of the, 314-315
military, 573-574
martial, 574-575
relations of labor to, 411
League of Nations, origin of the, 625-630
covenant of, 630-632
as a scheme of government, 632-636
system of mandates, 636-637
relation of labor to, 637
public health work of, 638
American objections to, 638-639
work of, 639-640
relation of Washington Conference to, 640-641
future of, 641-642
relation of Monroe Doctrine to, 600 n
Legislative reference bureaus, 237 n
Legislatures, state, decline of confidence in, 108
organization of, 235-237
L’Enfant, Major, planning of Washington by, 207
Liquor traffic, its effect upon the public health, 526-527
Loans to European countries, 613-614
See also Debts
Lobbying, 237 n
Local government in Europe and America compared, 178-179
Locke, John, his theory of political obedience, 64
Lockouts, industrial, 407
Lockwood Committee, its investigations, 55 n
London, first civil police established in, 216
poverty in, 541
Los Angeles, origin of recall in, 114
Louisiana Purchase, 228
Lusitania, sinking of the, 609

McCulloch v. Maryland, the case of, 435 n


Machines, political, 159-160
Madison, James, on the need of national defence, 564
contributions to The Federalist, 257
Magna Carta, 79, 323, 495
Maine, Sir Henry, on the rise of men from status to contract,
56
Management, industrial, as a factor in production, 50-51
Mandate (mandamus), the writ of, 317 n
Mandates, the system of, 636-637
Martial law, 574-575
Mayor, position and powers of the, 190-191
Mentally defective, the problem of the, 549-550
Merchant marine, 375-376
Mergers in industry, 387
Merit system, origin of, 103-104
workings of, 104-105
value of, 105-106
in the consular service, 374
Metropolitan counties, 173-174
Mexico, relations with, 615-617
Military government, 575 n
Military law, 573-574
Militarism, the encouragement of, 565-566
Milk, inspectors of, 524-525
Mines and minerals, economic importance of, 329-340
their relation to conquest, 334-335
Minimum wage laws, 416-417
Minor political parties, 152-153
Mints in the United States, 428
Money, origin of, 424-425
functions and characteristics of, 425-427
Money, forms of, in the United States, 427-433
relation of credit to, 442-443
quantity theory of, 444
See also Currency
Monopolies, types of, 54
effects of, 55
industrial, 387-388
natural, 474-475
Monroe Doctrine, origin and nature of, 596-599
present status of, 600-601
Municipal problems, 203-222
See also City government

National banks, organization and work of, 435-439


Farmers’ Alliance, 350
Guard, relation of federal authorities to, 568-569
Naturalization, requirements for, and procedure in, 81-82
Natural monopolies, 474-475
resources, 326-336
selection, the principle of, 3-4
Navy, growth and organization of, 575-576
See also Disarmament
Near East, American interests in, 620
Negroes, migration of, to the United States, 27
present numbers and distribution, 30-31
problems of, 31-32
voting rights of, 261-262
Neutrality, laws of, 589
American contributions to the rights of, 601
New England town, the government of, 175-176
New York City, population of, 23
poverty in, 541
New Zealand, compulsory arbitration in, 409 n
Nominations, history of, 120-121
methods of making, 127-129
See also Conventions, Primary
Normal schools, 504
Northern Securities Case, 365-390

Oil, the conservation of, 329-330


Old age pensions, 419
Open shop, controversies over, 408-409
Optional charter system, 189 n
Oregon, direct legislation in, 110
Organization, of industry, 50-51, 384-385
of labor, 401-405
Ownership, public. See Public ownership

Pacific, problems of the, 618-620


Panama Canal, the, 617
Pan-American Congress, 617
Parks and recreation grounds, 212
Parole system, 555-556
Parties, political, nature and functions of, 145-150
history of, 150-151
programs of, 151-154
the voter’s relation to, 154-155
organization of, 156-161
finance of, 161-162
reform of, 162-163
Partnerships, business, 50
Patents, 55
Patrons of Husbandry, 350
Pauperism, nature of, and remedies for, 540-549
Pavements, 210-212
Peel, Sir Robert, first civil police system established by, 216 n
Penn, William, plan of colonial union proposed by, 248
Pensions, the cost of, 583
old age, 419
Petitions, for direct legislation, 109
Picketing during labor troubles, 407
Playground, training for citizenship on the, 86
Philippines, government of the, 229 n, 230 n
Plumb Plan, 366, 489
Pocket veto, 294
Police, history of, 215-216
organization of, 216-217
Poll taxes, 456
Pools in industry, 386-387
Poor relief, history and methods of, 540-549
Popular sovereignty, 94-95
Population, growth of, 19-20
distribution of, 20-21
center of, 21
drift of, to the cities, 22-23
“Pork barrel”, in Congress, 464 n
Porto Rico, government of, 229 n
Poverty, extent and causes of, 540-545
methods of dealing with, 545-549
President of the United States, position and powers of, 286-
297
control of army, 571-572
control of navy, 576
Preparedness for war, the true nature of, 578-580
Price-fixing by governments, 391
Prices, relation of, to value, 53-54
to money and credit, 443-444
to taxes, 452
Primary, the different forms of, 127-129
Prisons and prison reform, 554-555
Private property, regulation of, 214-215
Probation system, 556-557
Production, economic, 41-42
the factors in, 42-52
large-scale, 388-389
Profit sharing, 394-395
Profits, nature and basis of, 51
Property, private. See Private Property
Proportional representation, 134-136
Prosecuting attorney, 171-172
Protective tariffs, arguments for, 370-371
arguments against, 371-372
Public buildings, in counties, 168
in cities, 212-214
Public domain, 327-328
Public health, importance of, 514-515
progress in the protection of, 515-516
menaces to, 516-520
methods of safeguarding, 521-534
enforcement of regulations relating to, 534-535
Public Health Service, federal, 534-535
Public libraries, 504-505
Public opinion, nature and influence of, 94-96
Public ownership, in Europe, 482
in America, 483
arguments for, 483-485
arguments against, 435-437
Public service commissions, 480-481

Quantity theory of money and prices, 444


Quarantine, methods of, 522-523

Races in the United States, 19-33


Radicalism, growth of, 646-647
Railroads, the beginnings of, 362-363
relation of, to Sherman Act, 364-365
in war time, 365-366
government operation of, 366-367
return to private operation of, 367
future of, 368
Railway Labor Board, 367
Ratio of representation, 272
Recall of officers, 113-114
Recess appointments, 271
Reciprocity with Canada, 373
Reconstruction, economic, in Europe, 614-615
political and economic, 646-661
Redistricting, 273
Refunding of public debts, 468
Registration of voters, 125-126
Regular army, 567-568
Removals from office, 106
Rent, its nature, 43
Representation, proportional, 134-136
Representatives, effect of direct legislation on the quality of,
112
the choice of, 96-97
proper function of, 98-99
Reserves, forest, 332-333
Restraint of trade, 389-390
Resources, natural, 326-336
Revolution, American, as a unifying factor, 248
Rings, political, 160-161
Rome, ancient, prestige of citizenship in, 80-81
Roosevelt, Theodore, on national defence, 565 n
in Venezuela controversy, 590
Rule of reason, the, 390
Rural exodus, the, 351-352
Russia, the new government in, 647-652

Sales tax, as proposed, 462


Schools. See Education
Second jeopardy, 320
Secret diplomacy, 595-596
Selective service in war time, 570-571
Selectmen, boards of, in towns, 176
Senate of the United States, organization and powers of,
267-272
rejection of treaties by, 631
Senatorial courtesy. See Courtesy of the Senate
Sewage, collection and disposal of, 527-528
Sheriff, office of, 171
Sherman Act, 364-365, 389-390, 391 n
Shipping Board, 375
Single tax, as proposed, 461-462
Short ballot, 132-133
in county elections, 174
Sinking funds, 468
Smith, Adam, on the canons of taxation, 455
Smoke abatement in cities, 531
Social contract, theory of, 65
control, 14-15
control, the limits to, 72-73
insurance as a means of reducing poverty, 548
Socialism, defined and explained, 652-653
arguments for, 653-654
arguments against, 654-658
Socialist party, its rise and present status, 154
Society, its origin and nature, 1-13
Soil, economic importance of, 327-328
exhaustion of, 345
Soviet system in Russia, 647-650
Speaker, office of, 274-275
Special assessments, 457
Spoils system, 101-103
in the consular service, 374
State Department, its work, 591
States, nature of, 62-63
relation of local government to, 186-190, 219-220
relation to national government, 226-227
admission of, 227-230
constitutions of, 230-232
functions of, 232-233
legislative organization in, 235-237
executive organization in, 237-238
judicial organization in, 239-240
encouragement of agriculture by, 348
control of corporations by, 392
tax systems of, 457-458
educational work of, 496-497
supervision of public health by, 534
Statutes and statutory law, 315-316
Steam, revolution in industry caused by, 384
Stock exchange, functions of, 445-446
Streets, planning of, 208-209
width and arrangement, 209-210
paving of, 210-212
Strikes, how organized, 406-407
Succession to the presidency, 296
Suffrage, history of, 119-120
negro, 120-121
universal, 121-122
See also Elections, Voting
Supreme Court of the United States, its constitutional
functions, 259-260
its organization and influence, 308-311

Tariffs and tariff policy, 368-372


Taxation, in cities, 220-222
the burden of, 450-451
the incidence of, 451-453
special nature of, 453-454
principles of, 454-455
local, 455-457
state, 457-458
national, 458-459
the two purposes of, 459-460
exemptions from, 460-461
the reform of, 461-462
Taxes, on immigrants, 30
as an element in the cost of production, 52
Teachers, the training of, 503-504
Tenements. See Housing
Territories, the government of, 229-230
Timber, the conservation of, 331-332
Town government, 175-176
Towner-Sterling Bill, 499 n
Township government, 176-177
Trade unions. See Organization of labor
Traffic zones, 210
Transportation Act, 364, 367
Treasury, Department of the, 299 n
Treaties, ratification of, by the Senate, 271
commercial, 373
how made, 596-597
Trial by jury, 318-321
Tribe, its place in political evolution, 66
Triple Alliance, 628-629
Trusts, industrial, 387
Tweed, William M., 161 n
Typhoid fever, its cause and method of transmission, 517-518

Unemployment, the problem of, 417-418


Unions, labor, aims and methods of, 401-410
Universal military training, merits and defects of, 578
Usage, development of constitution by, 258-259
Utility, the principle of, in determining demand, 40-41
Utilities, public, 215
the nature of, 474-476
regulation of, 470-477
franchises of, 477-480
public ownership of, 481-488
guild operation of, 488-489

Vaccination and inoculation, effects of 523-524


Value, definition of, 53
Versailles, Treaty of, 610, 631 n
Vice president, election of, 288
duties of, 270 n
functions of the, 296-297
Veto power, the President’s, 294-295
Vocation, the choice of a, 396-397
Vocational education, 507-508
See also Guidance, vocational
Volunteers, use of, in war, 569-570
Voting, preferential, 133-134
qualifications for, 122-125
absent, 138
compulsory, 138-139
by machine, 139-140
in Congress, 278 n
See also Registration of voters, Suffrage

Wages, factors affecting the rate of, 47-48


War, the cost of, 563-564
the causes of, 566-567
preparedness for, 578-581
the laws of, 588-589
humanizing of, 601
measures for the prevention of, 635-636
See also Arbitration, Hague Conferences, League of
Nations, Washington Conference
War Industries Board, 582
Washington Conference, 575 n, 577, 619-620
Washington Conference, relation of League of Nations to,
640-641
Washington, George, as a non-partisan President, 102
on the weakness of the Confederation, 252
at the constitutional convention, 254
on two-house legislatures, 266
advice on foreign policy, 597-598, 606 n
Waste disposal, methods of, in cities, 527-528
Water supply, sources and methods of, 529-530
Wealth, definition of, 39
Weather Bureau, importance of its work, 347
Wellington, the Duke of, on the value of organized play, 87
Wider use of the school plant, 505-506
Whitehall, Indiana, center of population, 21
Wilson, Woodrow, on the aims of America in the World War,
609-610
See also Fourteen Points, League of Nations, World War
Woman suffrage, the winning of, 262
Women, in industry, the protection of, 413-414
Workman’s compensation, 413
World power, the United States in relation to, 606-621
World War, rise of wages during, 48
American agriculture during, 342-343
American labor during, 419-420
public debts resulting from, 466
powers of the government during, 580-583
America’s part in, 608-609
cost of, 612
problems created by, 646-661
Writs at law, 317 n

Year Book of the Department of Agriculture, 347

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