Francesca Larosa (Italy) 1; Jaroslav Mysiak (Italy) 1
1 - Euro-Mediterranean Center on Climate Change
Climate services support mitigation and adaptation to climate change and encourage a science-based and climate-informed policy development. A performing market is vital for supporting uptake of climate services and implementation of international agreements. The diffusion of innovations depends on how business models; understood as firms’ strategic choices to create, capture and share value within a value network; are employed. Innovation in business model, rather than product innovation itself, proved useful for overcoming bottlenecks associated with development and diffusion of technologies. Despite their importance, only few studies have analysed how business models are used within the context of climate services.
We explore the role of business models in driving market performance and examine whether an identified business model for climate services exists. We use the Business Model Canvas as a framework and we perform content analysis on transcribed semi-structured interviews with 32 climate service developers and purveyors. We complement these findings with Network Analysis tools: by creating a directed, weighted graph of codes, we study the logical structure of the narrative to identify the most pressing issues services currently face. We identify key Business Model’s components per type of climate service in our sample. We find that the Value Network in which climate services operate is crucial to achieve success, while a subscription, online-based infrastructure is the one allowing to reach the target users.
Finally, we characterise the role of co-creation approach in generating direct and indirect incremental innovations while delivering seasonal forecasts and tailor-made services.