Opportunities for supplier-led systemic innovation in highly energy-efficient housing

The construction of highly energy-efficient buildings is more than an emerging business opportunity, it is also a major challenge in systemic innovation, particularly for SMEs, which are more accustomed to incremental innovation. Accordingly, this study searches for new innovation opportunities for supplier-led innovation in highly energy-efficient housing by examining the innovation journey and analysing the innovation opportunities and barriers encountered by a successful innovator in Flanders.Existing innovation models and innovation barriers and opportunities in the construction of highly energy-efficient housing are discussed within the framework of the theory on systemic innovation. The successful innovation journey of a supplier illustrates how coordinated collaboration can help an incremental (technological) innovation idea to develop into modular, system and even radical innovation.The study highlighted the importance of suppliers as players in the development of innovation. To successfully introduce innovation (even incremental innovation) suppliers need to join forces with other organisations and respond to the challenges of systemic innovation. Demonstration projects and collaboration between SMEs are key to achieving the modular and architectural innovation needed for highly energy-efficient housing. Given the specificity of both the construction sector and highly energy-efficient housing, the supplier should be given explicit guidance on how to link modular innovation to architectural and system innovation. Finally, the study also showed that players in dedicated radical innovations such as passive house networks can contribute to the market uptake of innovation.