Propelling Sutainability: Actor-Focused Policies for Aviation

Abstract

This research targets radical technological innovation to decarbonise the Dutch aviation industry with innovation policy provided by the Ministry of Infrastructure and Water Management (IenW). As most CO2 emissions can be reduced using sustainable energy carriers (SEC), the study focuses on three focal technologies: sustainable aviation fuels, electric aircraft, and hydrogen aircraft.

A Technical Innovation System (TIS) approach is adopted from the perspective of actors, to study what drivers and barriers are experienced by two types of actors in the aircraft manufacturing industry: incumbents (established actors in the aviation industry) and new entrants (either start-ups or actors attracted from other systems). The research aimed to design policy instruments to better integrate these actors, fostering innovation. This study determined that an actor-oriented TIS approach, that differentiates between actors, benefits TIS research in certain cases. This approach has a solid foundation, but additional research is essential to fully realise its potential.

The research was conducted in four steps. First, a technological review identified distinct TISs for SEC, based on current literature and informal interviews with policy officers. This newfound analytical step examined activities and technologies in six separate value chains for SEC. It provided a useful overview of technologies, to scope a TIS analysis and understand how TISs are connected. The remainder of the research focused on hydrogen aircraft, which was identified as needing the most substantial innovation.

Second, a structural analysis identified twenty-one actors, by reviewing documents and thematically analysing fifteen 60-minute interviews with actors. It concluded that incumbents and new entrants contribute differently to the TIS, as they share different characteristics and perform different activities. These results partially support previous actor-oriented TIS research.

Third, a functional-structural analysis determined that the weakest systemic functions of hydrogen aircraft are guidance of the search, market formation, and mobilisation of resources. The findings confirmed that incumbents and new entrants experience distinctive drivers and barriers. This affected new entrants more than incumbents. However, most drivers and barriers were experienced by both actors.

Fourth, seven policy instruments were designed to improve the weakest systemic functions and address barriers experienced by incumbents and new entrants. This involved a tentative approach to establish a policy instrument toolbox, based on current literature.

IenW is advised to use these instruments to integrate specific actors into their innovation policy. Moreover, policy officers at IenW are recommended to utilise the insights each research step has provided to advance overall policy performance.