European innovation policy for environmentally sustainable development: Application of a systems model of technical change

Abstract

Technical change is described using a systems model that focuses on four important characteristics: multi‐directional linkages, knowledge and learning, unique development paths and cumulative self‐reinforcing development. The model is then applied to the goal of environmentally sustainable development in order to determine the implications for policy at the level of the European Union (EU). The European Commission should use direct regulation, economic instruments, procurement and social policies to guide the direction of technical change. The systems model also suggests policy options for dealing with potential or existing lock‐in to undesirable technologies. Overall, the responsibilities of the European Commission should include the co‐ordination of long‐term regulatory signals and support for the development and diffusion of favourable technologies, constructive technology assessment and international co‐operation. Aspects of the proposed Fourth Framework Programme of relevance to environmentally sustainable development are discussed.