The document discusses the potential for green industry to drive innovation in Malta's manufacturing sector. It outlines key drivers of green industry growth including economic, environmental, political and social factors. It then details a proposed research plan to study how Malta can develop a smart green industry focus as a small country. This includes interviews and a SWOT analysis of Malta's context. Finally, it proposes a green specialization policy framework and specific focus areas for small EU countries like Malta to develop their green industries.

1. The Green Industry’s Potential to
Drive Local Innovation in the
Manufacturing Sector
Green Jobs from a small state perspective
29th October 2011
Andre Damato
B.Sc. IT Hons, M. Creativity and Innovation

2. The Growth of the Green Industry
Environmental
(CO2, SO2, NoX
Pollution)
Political
Green (EU Policy,
Economical (Oil
Prices, Taxation) Industry International
Commitments,
Growth Legislation, Green
Public Procurement)
Social
(Green Consumers,
Green Growth
Culture, Health
Effects of fossil
fuels)

3. Research Areas of study
1) What constitutes a smart focus policy in
green industry in the context of a small
country like Malta?
2) What are the particular difficulties and
rewards of such an approach?

4. Research course
Identification of entities of interest
Research Interviews with members from 5 Pillars of Interest: Government, Political Parties, Academia, NGOs and Industry
S.W.O.T Analysis on Local Green Industry Context built upon the Research Interviews
Validation of the S.W.O.T Analysis with key policy makers
Conclusions: Green Specialisation Policy Framework for small countries like Malta
Green Specilisation Policy - Suggestions for Malta

5. The five research pillars of interest
Public
• Friends of the Earth
• Greenhouse
• Zminijietna - Lehen ix-Xellug
• MEREA
Industry
Political Parties
•Local Companies manufacturing green
products
•Foreign Companies manufacturing green • Partit Nazzjonalista
products in Malta • Partit Laburista
•Local Retail Companies selling green products • Alternattiva Demokratika
in Malta
•Malta Enterprise
•Trade Unions
•Malta Enterprise
Academia
• Edward de Bono Institute for the Design and
Government Development of Thinking
• Faculty of ICT
• Faculty of Science
•Malta Council for Science and • Faculty of Engineering
Technology • Facutly of Arts
•Ministry of Finance • Institute for Sustainable Development
•MEPA • Faculty of Economics, Managemnt and
Accounting
• Institute for Economic Research on Innovation
(IERI)
Tshwane University of Technology, South Africa

6. A small state verity: Overlap of roles
between members from different pillars

7. S.W.O.T Analysis: Strengths
• Malta enjoys a stable political and regulatory environment
• Maltese government has already introduced the idea of green
procurement in various government departments
• Increase in public and industry awareness on environmental issues
• Industry standards in Malta are considered very high and are in par
with European levels
• Competitive labour market rates provide Malta with a competitive
advantage
• Malta has a strong multi-lingual workforce
• Possible areas of spillovers from high innovation sectors in Malta
such as within the ICT, aviation and advanced micro-technology
industries
• Malta has an excellent location and facilities for conferencing and
research

8. S.W.O.T Analysis: Weaknesses
• Malta seems not to be meeting EU targets on use of renewable energy
• Lack of relevant statistics and related resources relating to the local green industry
• Lack of coordination between government departments
• Lack of consultation with the Industry from the government’s side
• Various good initiatives for the uptake of renewable technologies, however no long
term national plan, making future uncertain
• ETC training application process is very cumbersome and complex
• Government funding mechanisms are not fully green oriented
• Maltese firms have difficulties in achieving economies of scale due to the limited
domestic market
• Raw materials: a double edged sword – high importation and high export costs for
finished product
• High costs for ISO and eco-labeling certification making it difficult for local firms to
get these quality marks
• Do to Malta’s limited space very difficult to allocate land for solar farms
• Limited collaboration between the University of Malta and the local industry

9. S.W.O.T Analysis: Opportunities
• Local industry is lately giving more importance to
research also getting various academics on board
• Edward de Bono Institute for the Design and
Development of thinking can aid the industry by
giving training in thinking skills and the fostering
of creativity and innovation in organisations
• Maltese firms can create solar solutions for local
scenarios such as balconies and apartments
• Identification of areas that need a high quality
input such as manufacture of glass bulbs used in
UV water filters, for water recycling

10. S.W.O.T Analysis: Threats
• Possible abuse of renewable energy schemes and tariffs
• Limited number of Maltese experts in the area of renewable
energy and environmental policy
• Whilst the environment is being given priority in
government policy and the media; it could be the case that
another theme is given more priority in the near future,
such as state security
• Since prices of renewable energy systems is getting cheaper
it might not make commercial sense to manufacture in
Malta in a few years
• Limited physical space for renewable technology
installations in Malta. Such as demolishment of terraced
houses to make space for apartments blocks and the
presence of penthouses

11. Eco-innovation facets feasible for the
local Green Industry: Wind Energy
Manufacture and Assembly
-Assembling of transmission systems tailored for
particular systems and design
- Turbine shafts good local presence of skilled workers
in the sheet metal industry
- Generators (already produced in Malta however not
for wind turbines)
- Various niche markets of wind turbine electronics
such as switches
- Manufacture of Fibre glass blades for
the wind turbines

12. Eco-innovation facets feasible for the local
Green Industry: Solar Water Heaters
Manufacture and Assembly
- Solar water heater tanks of stainless steel
- Medium to high value added
- Cutting and joining of frames and stands of
aluminum alloy
- Assembly of solar water heaters (whilst this has
limited value added, EU experience has shown
that assembly of green
technologies could possibly
lead to full manufacturing)
Photo www.timesofmalta.com

13. Eco-innovation facets feasible for the local
Green Industry: Photovoltaic (PV) systems
Niche areas supporting the manufacture of photo voltaic systems
Currently being produced in Malta, semi conductor tubes that are used
for lamps in the sterilisation process when manufacturing silicon PV
chips
Manufacture and Assembly
- PV systems assembled according to use
and needs
- Manufacture of PV systems. This area is of high value added, however
similar to the semi-conductor chip industry all the raw materials have
to be imported. When compared to
the semi conductor chip industry, PV cells are of less
value added nature since they are much less complex
and thus require less expertise, quality, capital and skill
- DC to AC invertors for PV systems (already present)
- System performance Meters (local companies already
produce similar meters for other industries

14. Green Framework Plan: Focus areas for small EU
countries like Malta (1)
• Formulation of a green Technology policy
Countries selecting the green industry as a focus area should
formulate a green technology policy. The aim for this policy is to
effectively direct investment, research and innovation towards this
area
• Reduction of high compliance cost regulation
Industry compliance regulation is at times entailing high and rising
costs, increasing the difficulties for small-medium manufactures.
This must be seen in the context that manufactures within small
countries have limited economies of scale
• Government green procurement
Governments of small countries can continue aiding and supporting
the green industry by increasing green procurement amongst their
various departments and authorities

15. Green Framework Plan: Focus areas for small EU
countries like Malta (2)
• Green cluster Industrial Park (Green Park)
Governments of small countries could select a physical area
for the re-development of an industrial park dedicated to the
research, development and innovation of green related
technologies and energy efficiency
[The OEC cluster in Austria is one of success stories in the green industry
employing over 500 employees and producing more than 300,000 m² of
solar collectors in the year 2008]
• Fellowships for technology and policy research related to green
manufacturing
Government should classify research on green technologies and the
environment as priority areas when it comes to student scholarships and
support (both at Masters and PhD level)

16. Green Framework Plan: Focus areas for small EU
countries like Malta (3)
• Careers Fair on Green Manufacturing
Governments in collaboration with the industry could organise a
yearly green manufacturing careers’ fair. The aim of this fair will be
to display possible vacancies and careers within the green
manufacturing technology fields and other related areas
• Private Funding
Access to appropriate sources of finance including that provided by
Banks, Business Angels and Venture Capital. Funding of this type is
fundamental in ensuring the setting up of research, development
and innovation activities across industry.

17. Green Framework Plan: Focus areas for small EU
countries like Malta (4)
• Green Technology R&D Cluster
Governments should be responsible for aiding the grouping and
development of a local green technology R&D cluster. This consortium
will be comprised out of government, academic, NGOs and industry
stakeholders.
The main aim of this unit will be research, development, innovation and
commercialisation of green technologies.
Industry
Stakeholders
The cluster will also be able to make
alliances with industry stakeholders Academia NGOs
and Trade Unions
Green
Trade
Government Tech R&D Unions
Cluster

18. E-Green Platform
Vocational
•Green Carrers
•Green skills
Courses
Contact Point
Industry General
Information E-Green •Government
Entities
•NGOs
•Technical
Installation Guides
•New Techologies
Platform •Industry
Stakeholders
Platfrom
Information
•Webinars
•Newsletters

19. Thank you
Andre Damato
B.Sc. IT Hons, Master in Creativity and Innovation
andre.damato@gmail.com
Active within the local think thank Żminijietna –
Voice of the Left which emphasises on the
principles of equality, social justice and ecological
sustainability
www.zminijietna.org