Managing the Difficulties Related to Adoption and Diffusion of Eco-Innovations : A Case Study of Electrochromic Windows

Sammanfattning: The increased determination to tackle the climate change has resulted in an increased importance of environmental friendly innovations. However, these types of products have a tendency to diffuse slowly into markets. Yet, the actual way through which firms succeed in bringing sustainable innovations to the market is relatively unexplored. The electrochromic window is an eco-innovation that despite its relatively superior technology and potential to reduce the energy consumption of the building sector has had relatively slow market diffusion. The aim of this thesis is hence to analyze the difficulties related to adoption and diffusion of eco-innovations. The purpose is to identify prerequisites that can improve the electrochromic window’s prospects of successful diffusion, and show how increased understanding of the factors/attributes that affects adoption and diffusion of eco-innovation can be used to improve the share of environmental friendly products on the market.  The findings are based on data from multiple research methods, such as a literature review, an analysis of the market for window/façade applications, basic building simulations, a simplified life cycle assessment, and cost-effectiveness calculations. This data is used to evaluate the electrochromic window’s performance relative eight factors/attributes that is argued to affect adoption and diffusion of eco-innovation. The main conclusions are that the electrochromic window performs well relative most of the identified factors and should hence have good prospects of being adopted within the building sector. Also, even though the electrochromic window has a high energy-saving potential due to its effect on buildings’ cooling need, the findings indicate that the window’s main benefit is its ability to ensure an unobstructed view. As a result, the window can provide both significant economic benefits as well as health benefits and thus also be beneficial for the society. However, since the benefits of the window are not communicated well to customers, there is currently a hesitance to adopt the window. Consequently, it is suggested that further research should be devoted to the understanding of needs and wants of the potential adopters and to prove the benefits of the window relative these needs and wants. Extra devotion should be given to the benefits of the unobstructed view since this could be the niche that separates the electrochromic window from currently established solar shading solutions on the market.