Key factors for successful sustainable innovation

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In his doctoral thesis, Hani Elzoumor has studied innovation ecosystems – networks of actors, institutions, activities, and infrastructure – that shape how innovative Swedish and European firms develop sustainable innovations. He has identified three success factors:

• collaboration and openness –how companies seek collaboration and external knowledge
• environmental innovations – the development of products, processes, and services with lower environmental impact
• business performance - measured through indicators of productivity and financial performance

“These three factors are closely linked and strongly influence each other. Firms that collaborate and exchange knowledge more openly tend to innovate more sustainably, and these innovations, in turn, positively impact both productivity and profitability.”

The thesis further investigates how innovative firms navigate their innovation ecosystems by managing the inherent complexities, trade-offs, and uncertainties that arise from institutional arrangements, external pressures, and available resources. It explores how firms use their internal strength – such as mechanisms for capturing value from innovations and absorbing external knowledge—to effectively respond to these challenges and leverage opportunities within the ecosystem.

”By studying how Swedish and European companies interact within their innovation networks, the research shows that choosing the right partners and building trust can be essential for driving both sustainable development and profitability.”

Openness can substitute patents

One surprising finding was that firms can at times substitute traditional protection tools, such as patents, with openness. The initial hypothesis was that the more open companies become, the more they must protect themselves. However, it turned out to be the opposite.

“By building trust-based collaborations, companies can develop environmental innovations without relying heavily on costly protection strategies - a practice that is particularly valuable for SMEs and micro firms with limited resources.”

Impact on policymakers, managers, and academics

This research is highly relevant since it addresses pressing challenges at the intersection of innovation, sustainability, and competitiveness - offering insights that are valuable both for policymakers aimed at accelerating the transition toward sustainability and for corporate management seeking to strengthen the long-term competitiveness of Swedish firms through sustainable innovation. It demonstrates that sustainability and competitiveness are not mutually exclusive but can reinforce each other when firms adopt the right strategies within their innovation ecosystems.

For policymakers, the results offer valuable insights into how public resources and support can promote collaboration and various forms of needed environmental innovation. For instance, the thesis provides evidence to design more effective frameworks that balance regulatory pressures with supportive measures, enabling firms to adopt cleaner technologies and collaborative strategies without jeopardizing competitiveness

For managers, the thesis highlights how companies can navigate ecosystem uncertainties, balance trade-offs, and use both external resources and internal capabilities to stay competitive while innovating sustainably. The findings encourage a shift in perspective, where openness and environmental innovations are understood not simply as additional costs or bearing substantial risks, but as long-term strategic investments that strengthen resilience and performance.

Also, for academics, this research is important. It provides new evidence on how companies manage ecosystem pressures and resources while building capabilities to innovate sustainably. It also improves our understanding of how firms manage complex challenges in innovation ecosystems–especially regarding climate change and sustainability pressures.

"The research contributes to both academic and policy discussions on the transition to a more sustainable society. By analysing data from a wide range of companies, it provides broad and reliable insights into how climate-oriented innovation can be accelerated—while maintaining economic stability and competitiveness."