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 ====== Innovation ======
-version: 1.1
-updated: March 2026
 <WRAP meta>
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 contributors: [Names]
 reviewers: [Names]
+version: 1.1
+updated: March 2026
 sensitivity: low
 </WRAP>
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 ===== Why this matters =====
-The historical view of innovation has shifted from a "vice" (pejorative and political) to a "virtue" used as an instrument for achieving social goals [3]. For smart grids, understanding innovation dynamics is critical because the "categorical imperative" often penalises developments that do not fit established cognitive and regulatory frameworks [2]. Moving beyond pro-innovation bias allows policymakers to address the enabling factors for technological diffusion and the "exnovation" of unsustainable legacy structures that hinder system transformation.
+The historical view of innovation has shifted from a "vice" (pejorative and political) to a "virtue" used as an instrument for achieving social goals.((Godin, B. (2015). //Innovation Contested: The Idea of Innovation Over the Centuries.// Routledge.)) For smart grids, understanding innovation dynamics is critical because the "categorical imperative" often penalises developments that do not fit established cognitive and regulatory frameworks.((Frenken, K., & Punt, M. B. (2023). A New View on Radical Innovation. In //14th International Sustainability Transitions Conference (IST 2023).// SocArXiv. https://doi.org/10.31235/osf.io/6cr5t)) Moving beyond pro-innovation bias allows policymakers to address the enabling factors for technological diffusion and the "exnovation" of unsustainable legacy structures that hinder system transformation.
 ===== ISGAN definition =====
-Innovation is the multi-dimensional process of creating and institutionalising new technological, social, or organisational solutions—including products, processes, and services—that respond to grand societal challenges and create public value. In smart grid transitions, this encompasses "mission-oriented" initiatives that aim to reshape socio-technical regimes through niche development, the alignment of legal and infrastructure frameworks, and the pursuit of directional objectives [1, 7]. Based on category theory, innovations are classified by how they interact with existing social and regulatory categories [2]:
+Innovation is the multi-dimensional process of creating and institutionalising new technological, social, or organisational solutions—including products, processes, and services—that respond to grand societal challenges and create public value. In smart grid transitions, this encompasses "mission-oriented" initiatives that aim to reshape socio-technical regimes through niche development, the alignment of legal and infrastructure frameworks, and the pursuit of directional objectives.((Aigner, E., et al. (2022). //Kapitel IV: Technical Summary.// In APCC Special Report: Strukturen Für Ein Klimafreundliches Leben. Springer Spektrum. https://www.google.com/search?q=https://doi.org/10.1007/978-3-662-66497-1))((OECD. (n.d.). //What is mission-oriented innovation?// Observatory of Public Sector Innovation (OPSI). https://oecd-opsi.org/work-areas/mission-oriented-innovation/)). Based on category theory, innovations are classified by how they interact with existing social and regulatory categories:((Frenken, K., & Punt, M. B. (2023). A New View on Radical Innovation. In //14th International Sustainability Transitions Conference (IST 2023).// SocArXiv. https://doi.org/10.31235/osf.io/6cr5t))
-**Innovation Category Framework (Frenken & Punt, 2023)**
+Innovation Category Framework (Frenken & Punt, 2023)
 ^ Innovation Type ^ Description ^
 | Incremental | Readily categorised and institutionalised in an existing category; valued for minor improvements. |
 | Breakthrough | Readily categorised in an existing category; valued for major improvements. |
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 ==== Actors ====
-Contemporary innovation is driven by a wide array of actors beyond traditional entrepreneurs and corporate R&D. These include "mission-oriented" actors—public and private entities collaborating to achieve societal value (e.g., grid stability, decarbonisation) rather than just market success. These actors must navigate the "categorical imperative," ensuring that new solutions are eventually accepted and valued within social practices and regulatory standards [2].
+Contemporary innovation is driven by a wide array of actors beyond traditional entrepreneurs and corporate R&D. These include "mission-oriented" actors—public and private entities collaborating to achieve societal value (e.g., grid stability, decarbonisation) rather than just market success. These actors must navigate the "categorical imperative," ensuring that new solutions are eventually accepted and valued within social practices and regulatory standards.((Frenken, K., & Punt, M. B. (2023). A New View on Radical Innovation. In //14th International Sustainability Transitions Conference (IST 2023).// SocArXiv. https://doi.org/10.31235/osf.io/6cr5t))
-{{:image_527976.png?600|Multi-level perspective (MLP) levels: Landscape, Regime, and Niche. Source: Novy et al. 2022}}
 ==== Technology ====
-Technological innovation in smart grids is increasingly "granular," characterized by the proliferation of small-scale, low-unit-cost technologies like solar PV and lithium batteries. Unlike large-scale infrastructure, granular technologies often exhibit steeper learning curves, faster diffusion, and provide more equitable access [4]. This granularity enables rapid experimentation and performance improvements, though it requires innovation policies aligned with market demand to achieve system-wide transition.
+Technological innovation in smart grids is increasingly "granular," characterized by the proliferation of small-scale, low-unit-cost technologies like solar PV and lithium batteries. Unlike large-scale infrastructure, granular technologies often exhibit steeper learning curves, faster diffusion, and provide more equitable access.((Grubler, A., et al. (2018). A low energy demand scenario for meeting the 1.5 °C target and sustainable development goals without negative emission technologies. //Nature Energy//, 3(6), 515–527. https://doi.org/10.1038/s41560-018-0172-6)) This granularity enables rapid experimentation and performance improvements, though it requires innovation policies aligned with market demand to achieve system-wide transition.
-Case: Granular vs. Large-scale Learning
+<WRAP case>
+Granular vs. Large-scale Learning \
-The "Low Energy Demand" (LED) scenario demonstrates that rapid innovation in granular end-use technologies can meet climate targets through widespread diffusion and rapid cost reductions. This approach reduces reliance on unproven large-scale supply-side technologies by leveraging the rapid learning rates of mass-produced components [4].
+The "Low Energy Demand" (LED) scenario demonstrates that rapid innovation in granular end-use technologies can meet climate targets through widespread diffusion and rapid cost reductions. This approach reduces reliance on unproven large-scale supply-side technologies by leveraging the rapid learning rates of mass-produced components.((Grubler, A., et al. (2018). A low energy demand scenario for meeting the 1.5 °C target and sustainable development goals without negative emission technologies. //Nature Energy//, 3(6), 515–527. https://doi.org/10.1038/s41560-018-0172-6))
+</WRAP>
 ==== Institutional ====
-Institutions shape innovation through laws, standards, and governance. A core challenge is how society categorises and institutionalises novelty. Institutional innovation also includes exnovation: the deliberate, structured ending of unsustainable practices, technologies, or socio-technical regimes to make room for transformative solutions [5, 6].
+Institutions shape innovation through laws, standards, and governance. A core challenge is how society categorises and institutionalises novelty. Institutional innovation also includes exnovation: the deliberate, structured ending of unsustainable practices, technologies, or socio-technical regimes to make room for transformative solutions.((Kubeczko, K. (2022). //Transformative Readiness - Unpacking the technological and non-technological aspects of sustainability transitions.// Presented at the 13th International Sustainability Transitions Conference (IST 2022).))((Novy, A., et al. (2022). //Kapitel 2: Perspectives for analyzing and shaping structures for a climate-friendly life.// In APCC Special Report: Structures for a Climate-Friendly Life. Springer Spektrum. https://doi.org/10.1007/978-3-662-66497-1))
 </WRAP>
-===== References =====
-Aigner, E., et al. (2022). Kapitel IV: Technical Summary. In APCC Special Report: Strukturen Für Ein Klimafreundliches Leben. Springer Spektrum. https://doi.org/10.1007/978-3-662-66497-1
-Frenken, K., & Punt, M. B. (2023). A New View on Radical Innovation. In 14th International Sustainability Transitions Conference (IST 2023). SocArXiv. https://doi.org/10.31235/osf.io/6cr5t
-Godin, B. (2015). Innovation Contested: The Idea of Innovation Over the Centuries. Routledge.
-Grubler, A., et al. (2018). A low energy demand scenario for meeting the 1.5 °C target and sustainable development goals without negative emission technologies. Nature Energy, 3(6), 515–527. https://doi.org/10.1038/s41560-018-0172-6
-Kubeczko, K. (2022). Transformative Readiness - Unpacking the technological and non-technological aspects of sustainability transitions. Presented at the 13th International Sustainability Transitions Conference (IST 2022).
-Novy, A., et al. (2022). Kapitel 2: Perspectives for analyzing and shaping structures for a climate-friendly life. In APCC Special Report: Structures for a Climate-Friendly Life. Springer Spektrum. https://doi.org/10.1007/978-3-662-66497-1
-OECD. (n.d.). What is mission-oriented innovation? Observatory of Public Sector Innovation (OPSI). https://oecd-opsi.org/work-areas/mission-oriented-innovation/
 ===== Related topics =====
-{{tag>Digitalisation, Exnovation, Mission-oriented Policy, technology, markets, social_practice}}
+{{tag>Digitalisation Exnovation Mission-oriented-Policy technology markets social_practice}}