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Business models for climate services: An analysis

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Francesca Larosa, Jaroslav Mysiak
Climate Services
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. The diffusion of innovations depends on how business models – meant as firms’ strategic choices to create, capture and share value within a value network – are employed. Innovation in business model, rather than product innovation only, has been proved useful for overcoming bottlenecks associated with development and diffusion of technologies. But only few studies have analysed how business models are used within the context of climate services. We fill this gap by using a sample of 32 climate services provisions at different stage of development. We use an original and revised version the Business Model Canvas as a framework to facilitate the data collection and analysis processes. A quali-quantitative approach is employed to tackle the content of the administered semi-structured interviews and to map them into a connected set of nodes representing concepts as provided by the selected informants. By combining Content and Network Analysis we present how business model aspects interact both within and across components. We find that the Value Network in which climate services operate is crucial for success, while a subscription, online-based infrastructure is a widespread tool in reaching the target users. The creation of partnerships and consortia of organisations allows mutual learning opportunities to happen and boosts the innovation behind these products. We focus on the graph giant component to highlight the role of co-creation approach in generating direct and indirect incremental innovations while delivering seasonal forecasts and tailor-made services. Finally, we call for tighter link between business and climate-related aspects to enhance the importance of financial considerations around climate services provision.
Developed by Paolo Gittoi