Short answer
Evaluate the strategic balance between capitalizing on current 'green' market trends and investing in disruptive, long-term material innovation.
- Field
- Innovation & Markets
- Source
- Preprints.org (2020)
- Method
- Financial analysis and comparative study
- Evidence
- Moderate effect
Financial market investments in green polymer stocks and carbon credits can yield higher returns than direct investment in new patent development. This innovation & markets research insight is drawn from a 2020 study published in Preprints.org. Using Financial analysis and comparative study, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Evaluate the strategic balance between capitalizing on current 'green' market trends and investing in disruptive, long-term material innovation.
Green Polymer Investments: Profitability Outpaces R&D Innovation
Financial market investments in green polymer stocks and carbon credits can yield higher returns than direct investment in new patent development.
Preprints.org · 2020
Key Findings
- 01Braskem's green polyethylene production remained stable, and patent filings decreased after 2014.
- 02Profits from BRKM5 stocks increased significantly, with an average share price increase of 268% from 2012 to 2018.
- 03Investments in Brazilian financial market securities (BRKM5 and carbon credits) were more attractive than investing in new patents due to higher gains and lower R&D requirements.
Application
Design takeaway
Evaluate the strategic balance between capitalizing on current 'green' market trends and investing in disruptive, long-term material innovation.
How to apply
When developing a business strategy for sustainable products, analyze the potential financial returns from market positioning and existing eco-certifications against the investment required for true material innovation.
Project actions
- 01Consider the business model for your sustainable design project: will you focus on marketing existing eco-materials or developing new ones?
- 02Research the financial incentives and market trends for sustainable products in your chosen domain.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a real-world case study of a company in the sustainable materials sector.
- +Analyzes financial performance over a significant period.
Limitations
This study is specific to Braskem and the bioplastics market; results may not be generalizable to all industries.
Reliability & validity
The study relies on publicly available financial data, which can be considered reliable. However, the lack of transparency in carbon credit acquisition limits the full validity of that specific aspect.
Think critically
To what extent should a company prioritize short-term financial gains from existing green technologies over long-term, potentially more impactful, R&D for novel sustainable solutions?
Design Principles
"Financial incentives can significantly influence the direction and pace of sustainable product development."
This insight highlights a critical tension in sustainable innovation: the potential for financial gains from existing green technologies and market positioning to overshadow the investment required for genuine R&D breakthroughs. Designers and businesses must consider the strategic allocation of resources between leveraging current eco-friendly products and pushing the boundaries of material science.
What This Means for Your Design
Sometimes, making money from existing 'green' products and selling them to environmentally-conscious customers is more profitable than inventing brand new eco-friendly materials.
How to use in your project
- 1.Use this research to justify your choice between developing a novel sustainable material or focusing on the marketing and application of existing ones.
Add to My Project
Quick Cite
Paragraph starter
The financial viability of sustainable innovations is a critical consideration. Research by Hellvig and Flores‐Sahagun (2020) on Braskem's green polymer investments indicated that financial market gains from existing green products and carbon credits can be more attractive than investing in new research and development, suggesting that market positioning and financial incentives can significantly shape the direction of sustainable innovation.
Source
Preprints.org
Investments in Braskem Green Polymers: Extraordinary Profits or Decarbonization of the Environment?
journal · 2020
View sourceQuestions About This Research
- What does the research say about green polymer investments: profitability outpaces r&d innovation?
- Evaluate the strategic balance between capitalizing on current 'green' market trends and investing in disruptive, long-term material innovation. Evidence: Preprints.org (2020).
- Why does "Green Polymer Investments: Profitability Outpaces R&D Innovation" matter for design?
- This insight highlights a critical tension in sustainable innovation: the potential for financial gains from existing green technologies and market positioning to overshadow the investment required for genuine R&D breakthroughs. Designers and businesses must consider the strategic allocation of resources between leveraging current eco-friendly products and pushing the boundaries of material science.
- How can designers apply this research?
- Evaluate the strategic balance between capitalizing on current 'green' market trends and investing in disruptive, long-term material innovation.
- What were the main findings?
- Braskem's green polyethylene production remained stable, and patent filings decreased after 2014.. Profits from BRKM5 stocks increased significantly, with an average share price increase of 268% from 2012 to 2018.. Investments in Brazilian financial market securities (BRKM5 and carbon credits) were more attractive than investing in new patents due to higher gains and lower R&D requirements.
- What research method was used?
- Financial analysis and comparative study.
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2020 journal from Preprints.org.
- What should I do differently in my next project?
- When developing a business strategy for sustainable products, analyze the potential financial returns from market positioning and existing eco-certifications against the investment required for true material innovation.
- What are the limitations?
- The study focuses on a single company (Braskem) and a specific timeframe. Transparency regarding carbon credit acquisition methods was noted as a limitation.