How Can Intermediaries Promote Business Model Innovation: The Case of ‘Energiesprong’ Whole-House Retrofits in the United Kingdom (UK) and the Netherlands

Abstract

Business model innovation is increasingly important for the diffusion of sustainable innovations - particularly those that are systemic in nature. In this paper we outline how systemic innovations, such as whole-house energy ‘retrofit’, may require new business models before they gain widespread adoption. Through a series of semi-structured interviews and document analysis, we undertake a case study of the ‘Energiesprong’ retrofit business model - contrasting this with the incumbent ‘atomised’ market model. We highlight the central role of an innovation intermediary - the Energiesprong ‘market development team’, in this business model innovation, and how Dutch policymakers sought to promote business model innovation through creation of this intermediary. In doing so we develop a novel framework - combining the components of business models with the functions of intermediaries to illustrate this case. Finally, the paper suggests this case and framework could provide lessons for how intermediaries and in turn policymakers might foster business model innovation in other sectors.

Keywords: Business models, Energy efficiency retrofit, Systemic innovation, Business model innovation, Intermediaries, Innovation policy