Climate change in the world is causing companies to create new business opportunities due to constraints of climate change. Constraints have always been a driver for disruptive innovation. Whether the business is electric vehicles (EV), pollution, or clean energy, climate change has been disruptive in how these businesses operate. The European Union this month ring-fenced 35% of the research budget for clean technology. Targeting climate, businesses may gain value instead of minimizing risk with disruptive innovation. While targeting problems such as emissions, it allows businesses new opportunities.
If Climate Change was not as serious as it is, do you think businesses would innovate on their own? What if conventional vehicles did not pollute as much, would companies like Tesla work so hard to produce an EV that is environmentally safe? I think climate change is the disruptor for electric vehicles, and beneficially forcing companies to find a way to innovate and create a product that is not as harmful. To be fair, electric cars have been around since the 1800s, if climate change wasn’t the disrupter would the push to EV’s be as big?
https://www.greenbiz.com/article/these-companies-are-embracing-disruptive-innovation-climate-action
https://www.euractiv.com/section/climate-strategy-2050/news/europe-ringfences-35-of-research-budget-for-clean-tech/
I am currently enrolled in a corporate sustainability class where we often talk about the challenges of global warming and how they affect business, but we also discuss heavily the issues that come with the modern neo-liberal society we live in today. Capitalism is dependent on constant growth and we live in a world of finite resources with an economic system that has infinite demands. So, I believe that regardless of global warming, we would need to find creative ways to create well made and sustainable products regardless because at some point we would run into resource issues. Obviously, this would affect industries far different than global warming and maybe postpone the needs for change, but regardless of global warming our oil is drying up and we would eventually need to find ourselves moving away from gas power and onto something more sustainable.
Very interesting.
In my view, Tesla’s rise is not triggered by Environment Changing. It helps, but it is not the main reason.
If there is no pressure from Environment and from laws/regulations, the car manufactories would make models with most appealing features.
For energy plan, they would choose the most economical and the most powerful engine, either powered by gas, hydrogen, or battery.
This is a really interesting point about climate change being the disruptor instead of the EV’s. I do agree if climate change wasn’t a key focus of people in many countries, I don’t know that EV’s would be as heavily invested in as they are now. Although, if we are following Christensen’s definition of Disruptive Innovation, EV’s are not quite there yet because they aren’t easily accessible and affordable and have not wiped out the majority yet. Although, it is possible we could get to that point in the future.