Components of business concepts for the diffusion of large scaled environmental technology systems

• Business concept components for environmental technology diffusion are proposed.
• Legitimacy, private-public partnership and regulation are important components.
• The focus of ecodesign is expanded to encompass large technical systems.
• Potentially higher environmental performance is expected in the expanded focus.
• Business concepts offer opportunities to realize such environmental benefits.

Strategies for sustainable development are arguably part of the most discussed issues among political and corporate actors. These discussions are spurred by global challenges such as climate change, urbanization, and critical natural resource depletion. Sustainable development will require deep structural and wide-reaching changes in current institutions, technologies, and businesses. Furthermore, new approaches are needed to facilitate the development, diffusion, and implementation of environmental technologies. In the academic discourse different concepts, e.g., ecodesign and Product/Service System design, have been proposed within the framework of sustainable development. To deliver even more system-wide environmental improvements, these concepts have been challenged to be expanded in focus beyond products and services to include large technical systems encompassing non-technological dimensions. Motivated by these, the goal of this article is twofold. First, to offer an expanded view on ecodesign of Product/Service Systems using a perspective of large technical systems. Second, to propose and discuss important components to consider when developing business concepts for the diffusion of large scaled environmental technology systems such as district heating supply, waste management, and renewable energy systems. Using qualitative semi-structured interviews and company documentation analysis, this study examines five companies that develop and diffuse large scaled environmental technology systems. As a result of these case studies, we propose components of business concepts that incorporate both technological and non-technological dimensions. Our proposed business concept components are: market (including regulation), finance, resources, activities, partnership (especially public-private partnership), ownership and responsibility, and legitimacy. Regulation, public-private partnership, and legitimacy are particularly important in the diffusion of large scaled environmental technology systems.