Low carbon innovation and development 35 furthermore

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Furthermore, it would be counterproductive to limit the discussion to technical aspects of learn-ing, innovation, and competence building. Effec-tive low- carbon development also needs to include organisational and institutional change as well as changes in the realms, instruments, and techniques of policy making. We do not yet know precisely which technologies need to be developed, nor do we know what organisational changes may be re- quired. One country will be different from the next. The ways in which institutions and policy making need to be changed are also unclear. We do know, however, that some of the necessary technical, or- ganisational, and institutional changes will be quite radical and that they will interact with each other. Unless we take into account these linkages and interactions, we will be unable to understand the requirements of low-carbon development. This is why we should use a systems approach to deal with the challenge and why we should assume that LICS are relevant and important to our understanding of, and policy making in, low-carbon development. Based on this background, it is clear that a dis- cussion of low-carbon development should rest on a broad and flexible notion of LICS. The broad scope enables us to embrace many kinds of inno-vation, minor as well as major, technical as well as organisational and institutional. Flexibility is re-quired, as the innovation capabilities that need to be developed differ among countries. Providing equal opportunities, especially in edu- cation and health care, has been crucially important in most recent examples of successful development (Johnson & Andersen, 2012). It is thus reason- able to assume that the impact on the livelihood of marginalised and poor people will be important also to the building and performance of innovation systems that can support low-carbon development. Moreover, if large segments of the population are deprived of participation in the process of low-car-bon development, and if its potentially great eco-nomic, social, and political costs (i.e., the costs of structural change accompanying all development processes) are distributed unequally and unjustly, the result may be not only weak support, but also protests and resistance from the negatively affected groups. We conclude that a LICS approach to low-car-bon development has to be broad, flexible, and inclusive . This conclusion is strengthened further by the vast quantity of resources required for dismantling carbon- based energy systems and building new systems based on renewable energy; this is a ma- jor problem on its own. It involves not only the costs of developing new knowledge, new organisa-tions, and new institutions; it involves compensat-ing people who stand to lose income and wealth from structural change. Massive investments of physical capital – equipment, materials, buildings, energy, transport systems, etc. – are also needed. We are unable to offer a realistic estimation of the
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