a viewpoint on innovation and the chemical

industry*

by
U. COLOMBO
Comitato Nazionale per I'Energia Nucleare, Casell~, Postale 2358,
00100 Rome, Italy

I. A SHORT HISTORICAL ANALYSIS:

I. The chemical industry is an inherently innovative industry. It is in

fact characterized by the production of new compounds, products and
materials which integrate or replace natural ones and which therefore
require processes and utilization methods different from those already
known. From this standpoint the chemical industry is innovative not only
ir its own field but also in other fields which its innovations affect.
2 This is not just a recent development but is closely related to the very
nature of the chemical industry. This is clearly shown by the development
~t thi.~ industry in the 19th century up to the first part of the 20th, from
chemical fertilizers to synthetic dyestuffs, trom pi~armaceuticals to the
main products of inorganic chemistry, from coal derivatives to explosives.
to th,.' first polymeric materials, plastics and fibr,:s.
3. The introductit, n of each of these products or ,:ff each family of
prodl~cts has started and developed the innovatio=, pr".cess in ti~e related
fields of agriculture, industry anti even service activities, which tht:s has
opened up for them prospects previously undream.~d of. it can be rightly
said that research and innovation in chemistry art; at the base of a ~arge
number of economic and social conquests of the modern world.
4. in this historical framework it must be remembered, however, that
some fundamentally chemical discoveries and innovation~ are aLo ~t the
base of developments ~ hich can hardly be said to revolve progre~;s in the
sense we h:tve.just menti,med. It is st~fficient ta consider the large stctor
of explo,,,ives, chemical weapons and the fundamcrtal contribution that

Paper prepared tor the O F C i ) Expert Gioup on Science and lechnology in the ~ev~
Economic Contexl. lhe author v,a.~ un:ll 1978 Director of Montedison', Research and
De~,cl~pment l)i~,ision in Milan. Ita',,~.

Re.get~rch Poh~ r 9 (1980) 204-231 ~,'~,rtll-ltollan,t

206 tI~ C o l o m b o

chemistry together with physics has more recently given to the develop-
ment of nuclear weapons.
5. it is also easy to demonstrate th~',t the chemical industry has a much
higher degree of innovation than other industrial sectors comparable to it
in importance and impact :~n other production and service activities. For
example the automotive industry was characterized by a gradual innova-
tion rate without substantial breakthroughs and the same can be said far
the metallurgical industry. On the other hand, we can see how important
innovations in other industrial fields, such as the textile and the
mechanical sectors, were often made possible by innovations in the
chemical industry. Today electronics, automation and informatics are the
main activities that stimulate innovation in the economy.
Chemistry has also substantially contributed to this dexelopment, and
has provided a whole range.of special new materials, and now innovation
in the chemical industry is, in turn, pulled by the demand of electronics
and related s/:ctors.
6. Experts on the chemical industry attributed to this industrial sector a
particularly rapid innovation rate in the middle decades of our century,
while in recent years this innovation rate seems to have slowed down:
more specifically there would no longer be breakthrough type innovations
as in the past. The retrospective analysis of the history of the chemical
industry, with special reference to its innovation content, leads to the
conclusion that the above rnt,ntioned decades were characterized by a
consideraNe economic growtlL and, as far as chemistry is concerned, by
the increasing mass usl: of mony of its products. This economic growth
has in turn favoured a wide dif,usion of innovation, based essentially on
fundamental discoveries which had in turn largely been achieved in
previous years. On the other hand, t)~e situation concerning most recent
developments is too complex and depends upon too many non-homo-
geneous factors (technological, economical, but also poli!ical and soci~ I)
to be summarized in a mere affirmation of a slowdown in the process: it
requires a much deeper analysis.
7. This paper, prepared for OECI) (Experv., Group on Science ~nd
Technology in the Ntw Economic Context) as requestca in the first
meeting held in Paris on Octt, ber 14 t5, 1976, is aimed at carrying out a
preliminary analysis allowing us to go into this matter more deeply.
To do this it is however necessary to examine with some atteation the
basic aspects of innovation in the period running from the 193.)s to
around 1970 - that is,. to the recent period of great development for the
economy and m particular for ~he chemical indust~3 ~.
Innovation a n d the ~hemi~al mdu.~tr~ 207

2. T H E C H E M I C A l . I N I ) U S I R Y IN T H E P E R I O D 1930 1970

8. The aspect to be first outlined is the exceptional development of

petrochemistry which dates back to the 193¢~s in the United States and to
the postwar period in Europe. Though it has consumed a relatively sm~:ll
quantity of petroleum it can be estimated at 5 7fi of overall consulnp-
zion the chemical industry played an esser~tiai role from the standpoint
of the quality of this col~sumption. The development of the main
polymers, for example, is related to the use of petroleum as raw material
many of these polymers were discovered before World War 11 but their
mass diffusion only took place after the war. [ h e y are the base of the
enormous industrial development of man-made fibres, of plastics and of
elastomers.
9. The development of man-made fibres not only made it possible to
meet the increasing demands of textiles but also led to considerable
innovations and an increase in prod,ctivity in the whole textile field This
was due t3 the development of processes and equipment capable of
exploiting the properties of the new materials and especially to the fact
that it stimulated new responses in the sectors connected to the traditional
(natural and cellulosic) fibres as xvell. t h e latter would certainly have
been characterized by a more static development, but to survive they had
to accept the challenge of the new products, thus giving origin ~.o an
innovation process which was stimulating for both fields. It must also be
considered that the new fibres have given rise to new needs in terms of
dyestuffs, finishes, auxiliary products, etc. that the chemical industry was
able to adequately meet.
10. Similar considerations can be made for plastics, which at first we~'e
seen as substitutes for conventional materials such as wood. paper.
metals, glass and ceramics, but which subsequently rose to the statos ol
real basic materials ~hich are utilized for their intrinsic characteristic..
and whos, chemical, physical and structural properties should b:
exploited to the full in order to allow new different applications. Wh.~t
has been s~lid in paragraph 9 about natural fibres applies here too wit h
reference to innovation in the products competing with plastic ma'~,.~rials.
I'he dexelopment of improved traditional materials such as wood, paper.
t~le~al allo}s, ceramics, and of the related technologies, ~ou',d have
presumably been much more modest without the stimuh;; t,, the
competitio~ of th.: nev,' plastic materials.
Ii. SimiL'r considerations can also be made about elastomcrs in
relation to natural JL~bber. Synthetic rubber, which ~as initially progosed
208 I I. (',,I,,d~b,,

as a sub~;titute of natural rubber in its principal applications, has also

permitted the development of new uses (at high or low temperatures, in
the pre'~;ence of oils or greases, ozone, etc). Competition has stimulated
the natu~'al rubber producers who have spent hundreds of millions of
dollars, obtaining new species that are far more productive (from
500 k g / h a / y r to 3500 k g ' h a / y r ) and identifying new methods of latex
stimulation with ethylene which enable the latex flow from mature trees
to be doubled, or more, in a few days, in contrast to the many years
required for new plantings to reach maximum output.
12. Synthetic materials arc extremely versatile thanks to the wide range
of characteristics ~'hich can be conferred on them by modi~,ing their
chemical structure, through physical tre~tments in the preparation and
processing of the material or of the manufactured product, or finally by
compounding different materials and developing composites, i'his
versatility, the possibility to "invent' new materials for new technological
applications, the ease with which the material can be synthesited near the
market of use, while many traditional materials are produced only in
certain well-defined areas, and the availability of a low-price raw material
common to all these new products made possible a massive replacement
of the natural products.
13. It must also be considered that the traditional chemical industries,
where the scientific discoveries were made, were joined by a whole series
of other industries (oil, rubbe:, textile industries, etc.) exploiting the new
materials. There are many r.':~sons which induced non-chemical enter-
prises to take advantage of thls o~portunity. They are to be found either
in the availability of oil and ~f adequate refining capacity, or in the
availability of the considerable financial means e~sential for these capital-
intensive activities (since many traditional chemical enterprises did not
readily dispose o'f such huge means), o-, again, in the fact of bei'~g
already present in international markets, t~r, as in the case of the rubter
and tradiLtional fibres sectors, in th: fear oi being gradually squee~,ed out
of their activities by the side-entry of compt~itors from lhe chemic~ll
industry.
14. There has consequently been ~ growth of new protagonists ~,ho
brought new points of view, chawging the traditional views of the
chemica~ industry. All this has implied ~ renovation of the business
approach with important consequences for the industrial sectors involved
and, in general, for the whole industry and economy.
15. As to chemical products for agriculture, after the. gigantic develop-
ments in the chemical fertilizers through the first half of thir, century, the
lnmr,'athm and the chemical ind~stry 209

main innovations concerned the pesticides sector. Together with the

parallel development of agricultural mechanization, pestLcides played an
essential role in achieving continuous increases in agricultural productivity
thus allowing labour migration from agriculture to industry and services
as needed by the more industrialized countries.
16. In the field of pesticides, and to a smaller though still considerable
extent in that of pharmaceuticals, the discovery of new proC .,cts essen-
t,ally took place through the synthesis of new compounds, essentially
organic. At first the synthesis was limited, as it was based on an
elementary biological knowledge of the properties of certain molect~les;
subsequently it was carried out more and more on a rand(;m basis, which
required laboratory and field application screening, involving an increas-
ingly wide range of new chemical compounds.
17. A kind of threshold effect is thus developed, which limits the main
innovative activity in the field of pesticides, insecticides, fungicides, weed-
killers, and so forth, to an inc~easingly fe~er number of large companies
in a position to carry out and support a very intensive and expensive
activity of synthesis and screening.
Th~ coexistence of many small ~irms in this field was made possible by
the nature of formulation producers that is, of chemical specialties
containing, together with the active fine chemicals, such compounds as
binders, dispersants, solubilizers and, in general, products capable of
allowing the optimal use of the active ~ngredients under specific co~di-
tions of service, specially prepared for the outlet markets (often local or
regional markets) where the close and capilla,'y con,act with the user is
a funo.'.'nental factor of success.
18. The p~.~ticides industry, which includes both the producers of active
ingredients and of formulations, was thus enormously developed in a few
decades, achieviny a structure which, as far as the active ingredients are
concerned, has a world-wide character while its turnover amounts now to
several billion dollars.
19. In recent decades the pharmaceutical sector has also experieno:d a
considerable development. In this case it should be noted that the
discovery of some of the most important classes of therapeutic substances
(x itamines, steroids, antibiotics and vaccines) took place through biolog-
ical obser, ations which stimulated pilysiological and biochemical
research. However, as pointed out in paragraph 16, in the pharmaceutical
field too, after th,: identification of the therapeutical properties of some
fundamental cb.enucal structures, product innovation was carried ou~ for
the most part thr,~ugh the synthesis of an e~,er increasing nuznber of new
210 u. colorer,,,

molecules tollowed by pharmacological and other screenings. Here again

we have a threshold effect, due to the heavy investrr, ents in research and
development, which leads to a gradual shake-out of smaller enterprises.
20. Another sector, which has been developea over she past decades and
has aroused an increasing interest in the chemical industry, is that of
foodstuffs and, in particular, of additives aiming at preserving food and
avoiding waste of food supply, as well as obtaining ready-prepared or
semi-prepared products and improving food or making it more appetizing.
For this, llavours, sweeteners, colouring agents, stabilizers, antioxidants,
emulsifiers, etc. have been developed.
21. Before ending this brief review of some important and significant
sectors of the chemical industry with regard to innovation, mention
should be made of two very important elements in order to better
understand the development of this industrial sector and its contributior,
to the innovative process as well as to that of innovation spreading.
The massive development of the new polymers of petrochemical origin
cremated and at the same time made necessary the parallel development
of manafacture of a whole series of other petrochemical products
tsolvents, intermediate products, auxiliaries, a d d i t i v e s . . . ) which
found ever growing application, ~ in many fields of the so-called
che~r;lica.l specia.lties industry and as auxiliaries and additives in non-
chemical industries (meta~ protection, lubricants, antffric~ion agents,
adhesives, antio,~idants, food additives...). The innovations in these
cases, although not exceptional, played an important and often
determining role, especiall3 as to the synergism with the development
of the ,~arious utilizer-i~du:,t,ies.
- The emphasis put on researCl~ by the chemica~ industry in the wake of
the successes achieved and simultaneous breakthroughs in a number
of other technologically advanced indu ~tries (electronics, telecomm ,-
nications, avion'ics, informatics, bioengineering, etc.) created the bas~s
-7or the development of a series of new materials for technologically
sophisticated applications which, though no~ used for mass consump-
tion, have had a decisive impor~tance in the developmen~ of these new
sectors.

3, CONSIRAINTS ON IN N O V A F I O N S IN THE CHEMICAL

INDUSTRY

22. In addition to the description of past innovatior, s, the analysis of

innovation prospects and trends in tihe chemical field must take into
Innovation and the, hemi,.l industry 2!!

account some of the constraints to innovation itself recorded in most

recent times. The most obvious examples of the,,~e constraints concern the
likelihood of undesired effects of chemical products particularly the ntw
ones on human health and on the environment.
23. During the past decade the alarm for potential health hazards has
grown, involving a wide range of compounds some destined for sale and
others present sometimes even only in trace amounts, in the products or in
the atmosphere within chemical plants used as drugs, cosmetics,
coiourants for foodstuffs, various additives, solvents, which come into
contact with man. in addition to the danger of toxicity there is now also
worry for the matagenic power of many synthetic compounds, as index
of possible carcinogenic and teratogenic power, in the more recent ycars
these worries have also been aggravated by the fact that several plastics
slowly release monomers or additives dangerous to human health. The
cases of vin,~l chloride and acrylonitrile monomers are good examples oJ
this situation. Criticisms against the chemical industry for its impact on
human health haxe thus grown considerably.
24. The example of thalidomide is too well known to necessitate a
detailed description. Though not the first alarm in the pharmaceutical
industry, it had such a ~trong impact on public opinion as to give rise to
sevele, even though ju~,~tified, government regulations. Today all these
regulations considerably increase the cost of the development of a new
drug and, an even more negative factor, the time required for its
introduction on the market, starting from the first synthesis of the active
molecule, in addition, the procedure of random syntheses followed by
screening is yielding ever diminishing returns.
25. A similar situation also exists in the field of chemical pesticides
where, to mention just one case many others could be indicated DI)T
and more generally chlorinated insecticides have created a predicament
to some degree similar to the one caused by thalidomide.
26. Ar,,,,'her significant example of constraints in chemical product
innovation is that of single cell proteins, in tiffs case, it was hoped to sign-
nificantly contribute to covering the protein deficiency of mankind by
producing large quantities of feed for animals and possibly even human
food, starting from a widely available and low-cost raw material such as
petroleum. Although the risk o!" negative effects comparable to those of
previous cases, as claimed by several scientists, was not experimentally
confirmed, this hope met obstacles which had not been foreseen x~hen
research started, l h i s fact a strongly negative attitude by the pLtl~lic
opinion is an c:~ample o! prc,'entivc reaction not altogether rationally
2 !2 u. Colombo

motivated ,,hose me~tning cannot be denied nor reduced, it must be

pointed out however that :he introdt, ction of the petcoleum-derived
:~ingle ,:ell proteins was also hindered by economic reasons due to the
change in the cos~t relation between petroleum and some important
agricultural raw malerials, such as cereals and soybeans, which provide
affe:native solutions to the demand for proteins.
27. The fields directly related to lauman health and food are those it.
which the reactiot~, to innovation has been the strongest, and most
disruptive. In parallel with the worry connected to health hazards there is
now a concern for damages to the environment caused by numerous
chemical products, like pesticides and solvents, which are either non-
biodegradable or only slowly degradable. Serious environmental prt,b-
lems are also posted b3 plastics. The fact that in contrast to natural
ma,:rial:~ most plastics are not biodegradable, together ~ith the
consideration of the increasing demand for such materials, determined
the risk of a growing environmental pollution which could not but
negatively affect public opinion with regard to the image of the chemical
indu ary i,self. The accusations agaiist synthetic materials were also
based o~: other arguments which, though not as specific as non-
biodegradability, were of certain importance. One of these accusations is
the ,'isk of fire and the formation of harmful chemical compounds by
the~ real decomposition.
28. Other sectors of the modern chemical industry were the object of
att:~:ks because of their inlFact on environment. The most clamorous
cases are perhaps t hose cohcerning t he fluoro-chloro-hyd rocarbon-based
propellants because of the d,.nger of destruction of the ozone layer in the
high atmosphere which constitutes a shield against ultraviolet radiations.
Other much discussed cases are those of the antiknock additives for
gasolines because, of pollution from lea,), and of electrochemical pro,'esses
requiring mercury electrodes because of the harmful effects of this metal
on man through the food chain.
29. The sitaation described above is further agg,'avated by accidents
such as that of Seveso where a chemical compound idio.x ;ne), accidenta.
formed during a reaction aimed at producing a different organic s u
stance, was dissipated in the environment causing very serious danger
and requiring the evacuation of hundreds of fzn:,ihes in a prosperod
suburban community. In normal conditions the chemical process that
ICM ESA applied for the production of organic int,zrmediate~ should not
lead to the formation of dioxine, but at'. unc~ntrolied temperature
increase led to the synthesis of this extremely dangerous and harmful
lnnovati:m a n d t h e c h e m i c a l dlu, t,,.~trt' 2 !3

compound. The case of :';e~eso showed in all its gravity the inability ol the
chemical industry, and even of the administrative structure, to r~pidly
and satisfactorily solve the problems deriving from the spreading in the
environment of a stable chemical substance.
30. In the 1970s a new factor arose to d.~.cisively affect chemical
innovation: the energy crisis, with its cost implications for fossil fucks and
the prospect of a scarcity of oil and natural gas in the not too dista~,.t
future, thus creating problems for the chemical industr} which utilizes
these as the principal feedstock.
31. Other factors contributed to create conditions of objective di:ficul-
ties to innovation: for in.,,tance, t~e increasing trend toward capital-
intensive production connccte¢ to lhe full exphfitation or atleged scale
economics, at least in certain sectors tpetrochem cals. plas:~cs, fibre,,.
fertilizers, etc.), lhi,~ trend has made the entry ot ne~,,-ct:ners mo,,t
difficult, since the experience accumulated by the already c,,tablishcd
producers, v.ith their gigantic plants, had con.,,equently cut produc~itm
costs to such level,, a,, t o render extlcmcl 3 hard the life ~,t t-ompctitors
M o t c ~ c r . in the clt,~c ~d"large petmtahemlc;d pt~c,~, m p~lrt~cul~tr. ,,,,ith the
concentratiot~ ol a number o| hoge plant.~, there h~.c tx'en ,,~ mptom~, ol
rigidity and ol a more diiiicult go,.ernability oi the plants thcmset~c,,.
I h e s e ,.arious lactors ha~e certainly put a brake on the thru,,t of
innovation.
32. )'he difficult,,' of finding adequate capital tor investment is a turthcr
adverse element to innovation, l h i s difficulty can be traced back to a
number of factors, including the scale ecor, omy. inflation, the reduced
profitability of industry partly connected to all the previously described
constraints.
33. As recalled in paragraph 24, the introduction of legal standards,
binding regulations, particularly in the basic petrochemicals, and oi
increasingly wide and different controls, especially as far as new pro-
ducts are concerned, have led to an enormous lengthening of the *Ames
required to introduce these products, as well as a big increase of the
rele~ant costs to prove their harmle:.sness. This brings about sucl~
threshold effects as to often render impossible the innovative activity of
small and medium-size enterprises, and also ends by discouraging the big
companies. This action has caused in many countries the abandonment
of the typical conditions of the market economy, in which the spirit of
enterprise that represents ~he basic conditions for the spreading and,
therefor,e, the success of innovation in the market is encouraged and
stimulated.
214 tl. Colomtro

4. THE NEED A N D O P P O R T U N f f l E S FOR C H E M I C A L INNO-

VATION

34. This analysis of the main constraints seems to lead to the conclusion
,that the conditions for innovation in ,he chemical field are considerably
reduced today ]'he reality is, however, much more complex because it
nvolvcs not only a survey of the factors analyzed in the preceding
;9aragraph:~;. but also the consideration of possible effects of future
iinnovmions on the industrial and market structures and. in the long run,
on the organization of society itself. What follows is not meant to cover
every aspect of the subject but only to indicate some significant elements
for the work to be done by the OECD's Experts Group on Science and
-I-echnology in the New Economic Context. in any case it would be naive
to approach a topic like this in ~,: traditional way. that is by using
conventional indicators such as the turnover of the various industrial
sectors, the R&D effort, the number of patents obtained, etc.
35. The chemical industry, particularly in the basic petrochemicals and
in other high energy-i~tensive production, will probably face a geographic
dislocation of investments, favouring new plants in the oil-producing
c~eveloping countries Several such countries, and others endov,'ed with
important mineral raw materials (for example, phosphate rocks), are
characterized by a surplus of their ba,ance of payments, and are striving
to reach as soon as 15ossible th ~-s;age of industrialization. Moreover. the
r~:eed tbr food in the third v, orld will create the conditions for a
dislocation of the fertili,~.er indu try towarc~ those countries. ].his trend.
albei't slow, should bc viewed positively by the established chemical
indu.,~try, whose scarcity of capital for investraents does not favour
e~penditures in mature capital-intensive production. However. this pro-
cess should be accompanied by a stront~tr commitment in the mot •
innovative branches of the chemical industry,
36. This process of geographic disloca:ion is in itself a factor that
sTimulate,., further innovation, because: (i) it liberates fit~ancial and
technical resources in the chemical enterprisc~ of industriali,,.d countries'.
(ii) The n,~w initiatives in the develcF, in~: countries will stimulate the
demand for more sophisticated chemical products in the world market;
(iii) ~ihe existing potential for scientific and technical innovation should
be fully exploited by the chemical companies in consideration of their
need to retain their position in the international market, threatened b)
the risk of an ~n,zreasing structural dislocation ol productive activities.
3 7. If we examine the prospects for the petrochemical sector. ~htch I,a~
Innovation and the chemical industry 2 ]5

made the greatest ,,ontribution in recent decades to the development of

today's chemical industry, we must first of all take into account that it is
threatened by a long-term depletion of its basic raw material and by a
steady increase in the price of oil, which may make, in perspective, raw
materials, intermediates and products of other origin more economically
attractive. The foreseeable innovation in the petrochemical sector will
first of all concern its readaptation so as to allow in the long term the
utilization of raw materials other than petroleum, such as coal (through
new gasification and liquifaction processes ), oil shales, urban and
agricultural organic waste, algae and various agricultural products. Coal
appears particularly attractive, both for obtaining aromatics and for the
obtainment of other important intermediates, such as methanol,
ammonia, acetic, acid, ethylene glycol, ethylene, acetyk~e, etc.
38. Whilst in the second postwar period the advent of petroleum as raw
material for the chemical industry has led to an enormous development
of ethylene chemistry, thus displacing the more traditional acetylene
chemistry, today a return of coal as raw material could lead to a revival of
acetylene chemistry. Such a switch could prove highly stimulating,
especially from the ,~'iewpoint of process innovation.
39. in the past, process innovation has played a very important role in
reducing costs and in the exploitation of scale economies. Process
innovation will undoubtedly find an obstacle in the large dimension of
installation, which as we have seen in paragraph 31, means huge
investments and technological, economic and market rigidity. However,
though representing a slow-aown factor, this obstacle should not hinder
inaovation completely.
40. At the same time, a new approach is needed for the future. It should
take in, o consideration, not only the exploitation of alternative,raw
materials, but also a proper utilization of by-products, a better and more
efficient recyc'6ng, and such problems as environmental pollution, wc, rk
safety, the harmfulness of certain technological processes and of certain
chemical products.
41. The issues related to health and ecological necessities discussed in
paragraphs 23 29 have created serious problems and constraints for the
chemical industry. This industry is however highly flexible and capable of
responding to the stimuli it receives, and is demonstrating its ability to
innovate in order to overcome the ties imposed by the strict regulations
introduced. Chemical engineering, for example, is finding new important
metiaods for the development of liquid and gaseous effluent treatment
processe~i (e.g., the integral recycling of process water), and othei new
216 l :. (,,I,,mh,,

processes that ar~. less polluting anti safer for the health of those who
work with t!~.em. ~n the same way. conipletely new types ot analytical
chemistry i,~trum:ntation are emerging for determining the presence in
trace amounts ol metal elements and organic substances. Moreover.
chemical industry can study substitutive non-polluting and safe products.
These innovation:., which aim at the safety of workers, consumers and
production, are rather b'.:rdensome ior the chemical industr, • ad conse-
quently deprive the inves:ments meant fer h e production of goods, of
financial and research forces: thus limiting inno~,ation in production.
42. The obligation of guaranteeing products that are neither toxic, nor
carcinogenic, nor teratogenic, stimulates a whole series of product
innovations, it may thus be expected, and the first slgn.~ of it can already
be observed, tha~ there will be a return of the Olemistry of natural
products. The study of t h e ~ substances and of the natural proce:;ses in
which they are generated formed the basis for the earlier developments in
the chemistry of dyestuffs, pesticides and drug,,. 1"he fact that natural
substances are intrinsically nonmutagenic and biodegradable reinstates
the conditions for an interest toy. ards this difficult and fascinating branch
of chemistry. Many of the active molecules within plant and animal lilc
have yet to be rstud~ed, and the world of aquatic animals, of algae, ol
phytoplankton etc., still remains largely unexp'ored.
43. The area of the chemistry ol mqural products is nov.. regarded as one
of the most promising w a y to future de,,elopment. I.!p to a short tim~"
a-.2.o, the experimental wo:k to identil~' at~d isolate one single ne~
molecule from a plant t~r ~tn animal organism was very long and
burdensome. The develop~rteat of analytic~:l techniques based on ga.,,-
chromatography, mass spectrometry, nuclear magnetic resonance, has
now made it possible to identify thous~,nds of new molecules every ye~.r.
This in turn has led to orienting rt:,~earch towards ways in ~, li~.:~
biosynthesis mechanisms can be directed towards the production of
useful co t~lpounds.
44. Safety of operation is one of the reasohs way recently interest ha:
arisen for the future possibility of installing some c~,tical themi ~''
production on orbiting satellites o" on the moon. The study of chemic~t
reactions or the preraration of materials in outer space opens u,,
interestin,~/ new horizons for chemical developments in the future, in
particular, space represents a highly valid laboratory for s t u d y i , g
reactions and production in the absence of atmosphere and gravity,
in c~ndiu,:,as ,ff extreme purity, or fo~ :xperimen~ing particularly dan-
gerous reactions. The acqui~sition of these elements of knowledge could in
some cases be exploited industrially on our planet.
Innovation and the chemical mdu%trr 2 i7

An example would be the growth in space of large crystals, especially tor

electronics, under controlled conditions of do0ant diffusion and segrega-
tion, of interface growth, of wetting behaviour and of surface tension.
Solidification is. in fact, very closely related ,:o convection and it is
impossible today to establish diffusion-controlled solidification condi-
tions o n earth.
45. Passing on now to innovation for mass-use products, it is extremely'
unlikely that a new plastic for mass consumption will be discovered in the
area of high polymers. The very good cost performance of high and low
density polyethylene, polypropylene, polyvinyl chloride, polystyrene, !,~d
ABS resins seem in fact to preclude the field to any possible newcomer.
Due to their simple structure, versatility of application, wide availability
of monomer:, at reasonable price, both now and in the future when it will
be possible to obtain them from other raw materials, these products will
continue to be widely used and their consumptior, will grow steadily.
Innovation in this'field of mass-use plastics will then no longer have a
breakthrough character as in the 1930s to I he 1950s when it was related to
the discovery of new and equally, important polymers.
46. However, we appear to here begun a new period of innovation, less
dramatic, perhaps, but in the long term at least equally important as the
introductq~n of nex~ polymers, l'his innovation will be essentia!ly con-
nectud to the progress of the ~cience oi materials an interdiscplinary
and border-line field between chemistry, physics and enginceri~. In
other words, we mu,,t look at polymers just as in the past thirty years ~xe
ha~e been looking at metals and alloys, exploiting our knowledge about
the solid state, rheology and the correlatic":: b:tween properties ar, d
structure which so far have had a relatively secondary importance. We
mua combine advanced basic knowledge with technologicai processes: so
as to fully exploit the possibili:y oi realiTi~u, diffelent types of structure
due to different ways of organiting molecules, so also obtaining mu!ti-
|,hose structure,, capable of cvinumg the desired application properties;
and combine knowledge of materials with kno~vledge aboat manufactured
produ~,ls, in order to properly design materials through processing or
crealing compounded plastics and composite materials in nrder to better
t,e,.ign the finished products, lno.ovation in this field will also tend to
obtain products meeting the environmental requirements mentioned
before such as degradability, non-flammability and non-toxicitv.
47. What ~as said in paragraphs 44. 45 and 46 about the main plastic
polymers also largely applies to sxnthetic fibres and elastomers. For
fibres, natural and man-made, a particularly interesting poir~t would be a
218 t . t,,h,,,,h,,

study of the possibility t,i imparting anti-bacteria~ properties to the fibres

themselves, tor use in the field of clothing and of fabrics.
48. The developments foreseen for the widely used polymers naturally
do not apply to the polymers required for special technological applica-
tions. In the latter case, in fact, it may be expected that new polymers will
be devclloped, which will take their place beside those realized in recent
years, such as the fluorinated polymers, and those containing aromatic
nuclei associated with amide, imide anti ester functions. These new
polymers are used for their specific chemical, optical, thermal, electrical
and m,~chani,cal properties, and will be mentioned in paragraphs 64 and
65, discussing special new materials.
49. la principle, favourable prospects also exist for the special fibres,
for which innovative developments are to be expected with the introduc-
tion of essentially new products, in particular for the rcinforcerr~ent ol
composites. The fibres in question are not only inorganic (glass, carbon,
ceramic:, metal), but also organic, as is indicated by the recent example of
Kevlar. ar.d aromatic amide fibre, wi~h far higher elasto-mecilanical
properIIie..~ than those of metals. Howe~er the re:~earch effort needed for
the development of these special products is considerable and is not
dissimilar to the endea.w, urs that have be,m nece:sary fol the major mass-
use polymers. Several. hnndred million dollars may well be required to
bring a ~..-~v special f i b r e , svch as Kevlan, onto the market. r h e :!gigantic
size of ~;uch financial comm,tr:~ents ends ~heuefor,: t~3' limiting the mmber
of ne~ ~naterials of thi~ type, 'with a selection r,ro,:ess of which the key
factor of sJccess is not only .t techxiological and market e,,aluat,on, but
also the perseverance and lor, g-sightedness of the firms invoh, ed.
50. l a the field of agricultural prodacts cheqllcal fertilizers will probably
undergo relatively ~klinor ixmovations at the commodities level, esp,',';ally
in consideration of the previously met~tione,:l constraints, while r,ore
valuabh." market segments will be de,,eloped with the prod'uetion ~.,fliquid
and other easily applicable fertilizers and ol low-release fertili,~ers, etc.
These new products will make agricultural production less cthtlv b '
reducing labour, especially in the developed countrues
51. rhi,; applie.s to traditional fettlii,,crs. rile situatior, is very differer:i
from the slandpoint of the result tt~ be obtaint,d that is, when we mo~,~'
from research on fertilizers to research on fertilization. Here the field is
still wide open and we may be on the eve of fimdamental breakthroughs
especiall.~, with regard to the biological approach to the problem. One
objective is the deveicl3ment of nitrogen-fixing processes similar tc those
already knc.wn in nature for some vegetable ~species, applying them to
blelovatton ~wld ,he ~heom al m , h t ~ r l 219

other plants such as cereals ~hich. through genetic modifications, can

utilize symbiotic nitrogen-fixing micro3rganisms, or by conferring the
property of metabolizing atmospheric nitrogen to bacteria not having
this characteristic. The problem consists of passing from the traditional
methods of plant physiology to molecular biology and genetic engineering.
Such an activity i, typically interdisciplinary and requires the cooperation
of ~pecialists of many different fields: chemists, biologists, biochemists.
agronomists, genetists, experts in catalysis, crystal structure and science
of materials, chemical engineers.
52. l h i s example of shifting of the emphasis of research and
con,,equently of production and service structure from the product
(fertilizer) to the process or. better, the function for v~hich the product is
obtained (fertilization) - has a much more general validity, not limited to
the sector beir, g considered and to the chemical industry for which other
examples ,,~ill he given here.
53. As to pesticides, the production of chemical compounds acting as
insecticides, herbicides, etc. must be substituted by an attack on in:~ects
and ,~,eeds organized on a global ecological basis, taking into account all
the element.~ of the natural agriculturai ecosystem, with the aim of
protecting crops in an economically ~'ai:~dw;,y. The problem consists then
of carrying out a c,~mplex and articular(: prn~ection using all the chemical.
physical and biological means capabl z of being utilized without toxic
and negative environmental effects and consequences.
54. Research is already mo~ing toward this new. more integrated and
interdisciplinary approach. One of its first trends is the increasing use of
pesticides dcri~ed from natural products. Another trend is to create
formulations o[ the active ingredients whic~ will improve their perfor-
mances, lhis rt'sult can be obtained, for example, by recourse to
microinc~psulatton techniques to redu,:e toxicity by contact, to provide
sclecli~it) It', the comp(~unds with :] ~ ider spectrum of action, to improve
the stability ol those which are Ioo unstable and to increase the
persistence of the more ~olalile ol~es b!,' means of a cot, trolled, long-term
rele;~se.
55~ ()nc intcrt.sting and inn~i,,li~e rout(; is the de~.elopment of new
meath complctel} ddl'crcnt from tl'c conventional ones. In the case of
in,,ccts, for example, v,e have to stud)' the chen,ical characteristics and
the biological properties of the :ubstances (hormones) which determine
mutations and metamorphoses, lhe nature of the compounds that insects
secrete and utii~,,e in their relations with their fcllov,-creatures, the
chemical-enzymatic processes ~hich lead to th(. formation of the tegu-
220 t,'. C-h.,~,,

ment, etc. The compounds capable of altering the normal growth rat~: of
insects (juvenile hormones and chitin-formation inhibitors)and those
determining their sexual beha~iour (fcromonesl are particularly inter-
esting for the application possibilities they offe.. Fer,,mo~es are chemical
.~ubstar~ces produced by insects to attract subjects of the opposite sex and
thus perform as chemical messengers. By placing lhem in special tral,s
they may be used to check on the growth of harmful populations and
establish wilen it is necessary to intervene with a concerted action u.~ing
more conventional pesticides in an appropriate and timely way.
Feromones, may also be used instead of insecticides ~o capl,.re insects in
traps or to disorient them by spreading the feromone ;n the air and thus
making coupling practically impossible.
56. The research and synthesis of chemically or biologically active
compounds can start from the identification of natural sub,~tances, lhese
substances, that can find application by themselves, are the starting point
for research aiming at obtaining new melecules more .¢,a~,le. more
effective or more specific. The current trend is toward a gradual
abandonment of the 'random synthesis and screening' approach to guide
the synthesis toward molecular structures with a high p,:oba~ility of
having the desired biological profile. To this end teehniqaes of "dru~-
design' which require the use of pov, erful scientific corr~pt~ters made
possible by the deveiopmer~t of data processing and of comparatke
study of biological activi'y are utilized. Close cooperalion betx~een
theoretical chemists., organic chemists, biochemists and biologist.,, is
therefore essential. Researct tends as a Erst step to outline the relations
between biological and related properties on one side, and molecular
structur,e on the other, in families of similar c~emical compounds in order
to reduce the number of compounds to be s~ nt he.,,i,,ed [lead optimi,,ation)
and, in the long run, to identil3' new strtctures ol maximum interest ~le~,d
generation).
57. But there is also another way, in a certain sense the opposite, of
approaching the problem, especially in tht case of fungi, bacteria an l
virus, and thi~ is p~ant chemiothetapy lhis meal, s ':,at the pl~t~t
treated from the inside and not cnl,, on the outside. I~hc chemiothtrai~
of plant disease~; is advancing rapidly, even if the beha~iour of plants 1
not the same as that of animals, in tha~ plants have no r~hagocytes, ai~
their behaviour needs therefore to be very carefully studied. [ h e mo~c
recent studies would seem however to point to the possibdity that certain
chemical products, used in the control of plant dL,.,:ases. ~'~:,nalso activate
a nalural mech:mism of resistance.
Innovatt~,n a n d l h • ~ hc,~,~, a t m ~ h ~ t r l 221

5•. What ~'a,, said about pesticides in paragraphs 53 57 also applies to

pharmaceuticals. Here. too. the problem consists of passing from the
pharmaceutical pioduct to the function for which it is produced that is.
the conservation and re-establishment of man's health. This requires a
shift from a strictly p :enomenological level of the knowledge of physio-
logic and pathologic lr,henomena to a level that takes into deeper account
cells and molecules, l o achieve this. increasingly refir:.-.d means of
in~estigation must be developed to isolate and identify tn biologic
systems the molecules which, even at ~er~ lob concentrations, act upon
physiologic processes, so as to acquire an understanding of their dynamics.
A much more interdisciplinary approach to the borderline between
chemistD ~. biology, biochemistry and physiology is needed. ' D r u g design'.
'lead optimitalion" and "lead generation' m~.thods will therefore be
increa,,ingly used to identil.~ ne~ pharmaceutical products with the
desired biological action. I n loci. the lii~elihood of Jiscoxering a new drug
by random screening tends to become extremel3 Io~'. in the order of one
successful product out c.~ hundreds of thousands of potential molecules.
the choice of drugs mu~t thus be based more and more on a knowledge
of the interactions of the molecules of a drug ~ith living organs, on the
modifications of actixe chemical compounds and. ~bove all. on the
knoatedge of the biological ac'ion involved.
59° In the case of pharmaceuticals and health, an ever increasing
importance ~il! bc given to the physiological biochemistry approach.
inxoking the study ,~f the biochemical functions that is. the study of the
metabolic reactior:~ of the organism, or of the organs, or of cells living in
normal or palhol~gic~l conditions in order to discover and isolate
bioh~gically actinic ~ubstances capable of affecting metabolic phenomena
b.~ accelerating or delaying them. As nearly all metabolic reactions are
catal.~,ped by enL~'mes, en,,ymology ~ ill more and more be a research field
to identify the actl,~e centre,, ~ith ~hich enzymes act ~nd to understand
their mechanism of action. I~h.wiologica! biochemistry studies will allow
not truly the di~ct~ery of ncv..~ubstantes capable of controlling metabolic
reacl~onx, but also to design appronriatc therapies to understand immun-
nological phenomena and processes and. finally to work on the basis of
tile knoaledgc ol" the ILlnCl|Orl Ot the organism on v. hich ~vc intend to act.
60. In this area the obtainment of specific molecules ~hich wil~ not
intcrlere with non-target sites, and the possibility of con~ e.ving, by means
ol an appropriate co,trier, the functional molecules to the si,.e of action
and there release them to perform their tast~, are becoming highly
tmp.~rtant. It ~s m~J-~'~unhkclv 'hat ~he molecules be so specific as not to
222 U. Colomh,,

interfere with other fu~lctions during their conveyance: oll the other hand,
the research for the i&.'al carrier means the realization of a ,~yst,:ra capable
of recog~lizing the target. A significant example of thi.,, d~velopment is the
work on the control of the action mechanism of the brain and the
treatment of such illnesses as Parkinson's disease, Hun',ington's chorea,
and schiraphrenia.
61. "l'hq~innovati,~,e approach of an interdisciplinary nature, applied in
paragraphs 51 60 to the problems of fertilization, biological control of
paras;t:z~, and pharmacc4ogy, will lead to revolutionary consequences in
the respecti~,e sectors; however, research must be carried out with great
ca~,tion in order to guarantee the absolute harmlessness for both man and
environment, particularly in the case of the inl:erventio~ of genetic
engineeri~g, an interdisciplinary new area in which chemical knowledge
is invoh'ed, i
62. Fields of organic chemistry other than those of pesticides and
pharmaceuticals will undergo sub.,,tantially innov~dve processes. As an
example we can recall the case of dyestuffs where the approach of
theoretical chemistry and computer-oriented synthesis is expected to
have a prominent role. However, in general, in organic chemistry as well
we shall have to operate in a1~ increasingly interciisciplinary way at the
border-line with other disciplines in order to oat~m products really
corresponding to the use '.o be made of them.
6.3. One activity that is b~ing increasingly developed is that of chemical
formulatJton. Th,e issue of formulation has been mentioned in paragraphs
54 and 60 in relatioa to pesticides and drugs. More in general, the
introductiion of a specialty chemical into the market calls for an
appropriate formulation of the product, that is to say. it necessitates the
presence of dispersing, lubricatil, g, emu~,sifying, humidifying, stabilizing
agents and so forth to preserve the ~nternal phases and to alloJ the
appropriate functions of the external phases in contact with the enviror-
ment Formulation chemistry was initiall~ d~velop,',:d us an eminently
emphical sciepce, but has increasingly used .,,pecific cNis,cipliles (structur; I
chemistry, non-equilibrium therlaodynamics, phase eq~ailibria, intelf'
physics and chemistry).
64. Another sector of special importance for the eco,'.'~.ly, to wht~g ."
development chemistry has given and will furthe~r giv.: an essenti~
contribu~tion, is that of special materials required for a whole series c f
very different applications. Each technology needs., in fact, materials
with spc.cific properties - from the most sophisticated to those necessary
to obt~,in everyday consumer goods. These are metals and alloys,
I n n o r a t m n a n d t h f ~h e m i , a l mdu.strv 223

polymers, ceramic materials for structural uses, corrosion-resistan't

materials, very hard materials, piezoelectrics, ferro-electrics, dielectrics,
conductors, semiconductors, superconductors all materials used for the
specific function they can carD' out: electrical, thermal (resistance to high
temperatures and to thermal shock,,.), optical, electro-optical, chemical
(catalysts, electrodes), magnetic (for permanent magnets, for magnetic
bubbles, for audio and video recording).
65. In the sector of new materials we must expect an increasing growth
of special polymeric materials for technologically advanced applications
because of their great versatility. Some of these are already a reality: for
example, the very high modulus fibres for advanced composites, hollow
fibres, porous hygroscol~iC fibres, polymeric materials for energy absorp-
tion and dissipation (e.g. on missiles and satellites), for interlaminar
joints, for adhesives and glues replacing metal welding, for energy
barriers (thermal, acoustic and electric insulation), for energy transmis-
sion (light, hew, electricity), for optics (lenses, glass substitutes), for
surgical prostheses, etc. The great versatility of polimeric materials wi!l
allow the range of these applications to be widened by exploiting both the
properties inherent in these materials such as anisotropy due to macro-
molecular configurations, or the viscoelastic behaviour, and by special
process technology (such as super-orientation of fibres and crystallization
of p!.astics). On a longer time-scale, superconductive polymers could be
obtained, and more in general there are hope.,, of a new generalion of
pol.~meric materials for application in electronics.
66. By w~,y of example it may be interesting to examine more closely a
type of material, like the magnetic for recording, because it allows a ready
understanding of how the production of the tape of a cassette requires
different materials which, though apparently simple, in reality arc
extremely sophisticated: a light, non-deformable polymeric tape with
high mcchanical properties, a magnetic oxide involving a complex
production process and unalterable adhesives. These materials can in
principle be manufactured by different firms, but progress in this area
will increasingly depend on the capability of a single enterprise to design
and produce all of them. Such an enterprr~e, however, in order to be i~
the furefront of ghe more sophisticated market applications, will have to
depart from strictly chemical markets and technology and to operate ~:t
the border-line with several branches of ~pplied electronics.
67. in this special materials sector innovation is involved by technoloig-
ical prog.wess in applic;.tion fields in which a strong demand exists for nc~'
materials more suited to the complex functions for which they are
224 I ~+(oh,m/-,,

designed. These fields are in fact in great need for ,;uch mate.rials in ~iew
of their innov~ttive development. Chemistr+¢ is engaged ~_o meet this
requireme~at, in this case, too, the problem ,:onsists in pas.,ing from the
product to the function for which the product is designed and, conse-
quently, to a typically multidisciplinary approach at the borderline of the
various chemic,~' physical and engi~leering disciplines, as well as of the
biological, environmental and social ones. Of course, rhi.~,development of
rviateriah,, to which chemistry is asked to give a substantial contribution,
will not be necessarily advantageous for the chemical industry alone. On
the contrary, as a consequence of the shift of empimsis from the product
to the functions, other industries may ~e iaterested and involved in lhis
process.
68. The innovation margins fo~ chemistry are to be seen in its contribu-
tion to the solution of mankind's problems such as food (fertili/ers a~ld
pesticides), health (pharmaceuticals), clothing (fibres) and the like.
Within this framework it is interesting to examine the energy prob!,:m,
which is of primary importance today. A full analysis of the topic would
however take us far ~,eyond the scope of this paper.
69. It rilay however be remarked thai [l~e energ~ crisis is pushing the
chemic~tl industry towards a reduction of enetg.~ consumption, to be
achieved througI~ a rev~.,.,ion of its proce.,,ses, a sttnd.~ of new processes or a
return to proces,;es and basic products that had been a b a n d o n e d under
different circumstances, as tn the previousl.~ met:tioned cases of a ~:t~al
and acetylene chemistry. In paragraph 81 mention will be made of some
of the raore sig.aificant inter~ +,ui,,,n,~ of ,:tlemistry ~n tile development of
ne,,v sources of energy, energy carriers, etc.
70. The necessity o~ cbnserxing energy aI~d of better utili/ing the
existin!, resources repre,,+ents ~n opportunity Ior an area of chem,str~
'where industri~tl ,interes~i did not a p p : a r to have major prost~ cts:
electroc'~e,nistry. "l;his branch of chem,st~"v, ~hit;h is well cap:~ble ol
operating at ¢or~tt ,~led energy ie~c!s, may pl~ ~ an increasingly important
role in organic syntheses, for ~,,,htch rcac~:ors ul t+ew col'tceiltioll arltJ I101"~
conventional clot',rode.,; must be dcwAoped. But tl',e incl :~,,e ol oi pri:,
will ulso ~rtake room for .!.>tht':r ,el,:ctrt,c:hemical i~atcr~elltlOllS, 9+i,~]1 l]le
dexeh~pmelat o" batteries acctln~t~latc+rs, !'t~el t:eils, x~hich ~ 11 fin,]
enal:,loyment in energy stor~ge, particularly tor the Io~d levelling ol
e!ectric power, in m~r~or-dti~en vel~kles, in domesttc and !ndttstrial
applications. l':"~e dexttopment of h3~]rogcn ~nd ,t~e~.h~nol ~,, ,'r;erg.~
carriers cotlld _r,a,+our tile success of fuel ,:ells. l!let.'trt+chctni~,trv, m,~rc,~ cr
could find extera~.b,e apt~li.cations i~ ind.rect processes: t ~te,,e ;.|le b~.l~,td o1"~
Inm~var,rm anl~ the ( hemi~ al m,hl~lrr 225

the use of redox systems (usually inorganic salts) which react promptly at
the electrode and can be present at such low concentrations so as not to
pose problems of mass transport.
71. r h e problem areas of primary interest for mankind, in which
chemistry finds itself ever-more involved, include that of water, in the
future, water will be increasingly considered as a precious resource no
longer practically free of charge and at the disposal of all and it will
ha~e to be used wisely and recuperated for further uses. Collection,
distribution and recycling of water call more and more for an action tha
involves a whole series of ph.vsieo-chemical, biological and engineering
problems tha~. are of no eas.~ solution. Chemistry is already involved ill
the treatment of water for different applications usir,g differ,:nt tech-
nologies, such as electrodial.~is, rever,c o~mosis, ion-exchange resins.
electrochemical and biochemical processes, solar energy, etc.
72. ('hemistD will find its greatest innovative development Jbllowing
the direction of a growing integration with biology and the livin~ig
phenomena, rhis intcgratior, represents the natural solution to a numbe-
ol complex and highly serious problems, such as providing sufficicn:
food for humanity, increasing reviewable materials and energy resources,
producing goods biologically compatible x~ith the living species, respect-
ing the en,,ironment and developing less "violent" technologies than those
at present adopted.
"~3. From this vice, point, the dex,lopment of enzymatic-type catalytic
processes. ~hich operate in bland condi',ions, appears ~o be the most
appropriate approach, counterposed to the more traditional one oi
adopting zxtreme conditions (high prcssure.~, high temperatures, llam,:
r,:actions) in order to increase yields and ~:action rates. Biochemistry ant
genetic engineering will increasingly tint; emplo} ment, in particular, i;:,
~le
l
production of agricultural fl)odstu,"fs and of specialty chemicals
through tZ'rmentation. Biochemistry is not in a, position to replace the
I,ca~,, chemical industr~ =today, but there ;~re wide marjins for improvinL:
Ihe elliLiency ol m~crobic cultures and, in addition, the operat;n~
,'Ol'ldi|iO~ls arc such (for instance, temperatures only slightly higher that
,l+lbie II) as to limit the losses due to irrc~,+ersihle processes in relation t~,
i:hc ~,e:ond principle 01" thermodvwmmics.
226

5. C O N S E Q U E N C E S ,I)F I N N O V A T I O N ON THE I N D U S I R ~ A L
S I I ~ U C T U R E , ON ] ' H E S E R V I C E S A N D ON S O C I F / I Y
I

74. Afte; discussing the problem relating to innovation, existing con-

straints, future prospect,,, and ils location, introdu,:tiol~ and incentiw.'s, it
is import;mr to examine tl~,c effects of innovation on the industrial and
market structur;, on the services and, mote generally, on society as a
whole. 1[ we tt ke into consideration ~.he O E C I ) countries, it clearly
appears that tht ir present production, trade and d e m a n d structures are
still thcse that lave been formed during the course of their economic
deve~oplment, es ~ecially over the more recent times, as a consequence of
/

their industriali~ ation process and the creation ~f a society, under certain
[ , 0
aspects a~ready ~ost-mdustrlai, based on the implicit presumption ol a
limitles., availability of natural resources. These structures are not
compat,ble with the human consciousne~,s of the limits. the scarsity and
the growing cost of certain resources, the necessit~ of a more attentive
colaside,"ation to ecological and environmental fal.'lOlS.
75. Lli'~til recently the chemical industries in the ( ) E C D countries hay,:
been s!~imulated by the considerable innovation process outlined in
paragr;alahs 8 21. r h i s process had to face ever increasing constraints
summari.~ed in Faragraphs 22 23. On the: other Ia~,tad, if we examine the
need~ for and the prospects o inoovation discussed in paragraphs 34 73,
we can ~ee that i~:hey meet rtq.~irements which arc quite diflerent frt, m
those of even a irecent past. t h e s e requirements ;.~ad perspectixe,, thus
I

find lh~.' ,economt/c and mdustn.,! structures madeqt~ate to face them. but
they alse find society it~,elf ill-prepared and co~tfu.,,ed in relation to the new
orien~atians, to the changes in dernand~; and ,~mues, to the awakening of
an .a,,~ar,:ness co~itccrning a general chan,,e that is occurring and ,ff "he
con:~et!ucnces that this entails. For these reasons too., inno~'alion enco~n-
ters a t!~owing difficulty. All this may be more clearly explained ,,~,ith a
l~ew factaal exalrples.
76. AJlamg the cases wc have previousl.v t.~n,,idcred, t'.~.at ol the" new
pcslicidcs and of the integrated b,olot-,,ical pt:.,.l: contr~:fl ,~cthod', t~,e~
paragr;Jl~hs 53 5:i) represent a goo0 relctcnce p,3i~ll. I h~:sc ilUtOXatiolaS
~lr~:ady are Ileal" ~ake-off and arc. therel'ot,:, ill a t'~siti,.~t tO pnox,dc ~.al~d
elernenls of consideration. The dcma~d for tradit Ol~ai pesticide.,, is
clisperscJ and relatively non-organi,,ed. I'his depends :npon the naturc of
the pe~':icides themselves and the vcr\' st~n~ple kno~vlcc,!.e :cquircd to use
thegn, ~:~.cn il" the enx ironmerttal damage deriving f r o ~ ,~ttch use is olien
iL~nored Moreover, the industry which produce.,, ,,t:~ci: pc,.ticidcs or their
I . n o v a { i o t a an..I tl~c , h e m . a l m , h l ~ tr I 227

formulations, as well as distributors and farmers who utilize' them, are

intere~,ted in their large and ever growing t~roduction.
"/7. ()n the contrary, the new pesticides are not, strictly speaking.
"products'; they are rather a different way of controlling pa:rasitcs and
have a high knowledge content at research, production and utilization
level. t h e y cannot be marketed through the usual channels and the larmer
is not in a position to use them as he uses the traditional products. I n fact,
the,. require precise and scientific utilization met ~ods and, conseqt~ently,
a considerable amount of knowledge if they are t , be rationally used with
benefit= Hence, organized systems capable of of G'ring them as a service
not just as products are indispensable. On the other hand. the nt:,~
pesticides represent relatively small quantities of products which, though
~er.v valuable, cannot ,% such an interestirg business for industry. The
latter could only find some advantage in a ,,ervicc, thus more and more
modifying its own structure. Such service is, however, made difficult if
not impossible by the lack of suitable structures capable of receivin/~ r,it. In
fact. demand is neither aggregated nor organized. Its aggregation and its
organi.'atnon require adequate rt*gtona! forms of ~:s~ociation or a planned
in~erxcntion o1 the government and regional authorities in a word. a
difiere~at ..,o~:iai strutturc.
7~o I he ne,,,, pesticides could be more easily introduced and utilized to
protect crops in many de~eloping countrie.,, where it is possible to create
suitable regional organization to use then,. Hence. although it may sound
paradoxical, certain innovations deriving from advanced fundamental
scientific research could find their first application in the developing
countries as a ton:cquence of the presence of fewer obstacles. This
pcct:lia .~ituation ts due both to the simplicity of their often still
prc-ind,Jstrnal structures and to the political will ef their governments to
m,dcrv~ly face Ihe r~mblem of crop protection, als( availing thern~;ei,~ es ot
the hell~ of the more de~eloped countries.
79 Other innovation lines v, hich wcrc previously discussed, e.g the
fotthco~uing fertili/ation methods (paragraph 51) replacing traditional
Icrtih/cr,,. or the ne~ approach to pharmaceutical research and h,.;alth
problclil~ i paragraphs 5b; and 59) arc also capable of inducing signif,cant
chlinge:, Ill the ..,tructu~c of ecolionlic and social iicti',itic.,,. A l-~r,~cuss ol
restructun'ation of the production and market system will also be i~'duced
bx the change.,, occ.lrring in areas of materials i csearch.
811. |:_nlergy represents a further example that contributes to~rarJ atl
understanding of thc modifications ~hat arc tc bc expected |01 tht.
industr al structure in connection with societal needs, and that in~ol'~t
228 t'. (. o h ~ m h o

chemistry together with other big indusltial sectors of the economy. In

this case, the chemical industry does not play the leading role, but does
ho~.~ever represent a far more important factc, r with respect t,~ the past.
The exploitation of the most promising non-traditional sot~rces of energy
call~, in fact, for the preparation of a wide range of fuels and material~
both structural and capable of meeting .,,pecific functional requirements
(electrical, ~pt!ical. ~;hermal, magnetic, etc.) and the deyelopmeat of new
che,a-aical proce.~ses, l-his is a challenge that the chemical industry will
certainly a~zcept.
81. ~t may also be expected that this industry will be able to undertake a
far more active and pulling role. it is obvious, in fact, that the use of
sources, such as coal, shale oils. organic wastes; of energy carriers, such
as methano~ or hydrogen: of storage systems of the electrochemical or
thermal t~ i~t.~s(phase-change materials) or stru~'tural (metal hydrides): of
traJa~formation systems like photovoltaic or photochemical ,'onversion,
fuel-cells raagneto-hydro-dynamics represent exceptional opportunities
for a concomitant de,~elopment of chemical and energy processes.
82. The'~.~ailability of decentralized cnerg.y sources and related energy
sys:tems could allow a more general process of indus~.rLal, economic and
social deiz~'rntx'alization. This deveh~pment, as opposed to a highly cen-
tralized ~i~ne. towards which other erlergy altenatives requiring very large
pr~ducti,!~n units lead, is unlikely tc. occur as a result of choices based ~n
strictly ~'conomic orofitability ~al,~ations.
83 ]In 9rder to move tovcards a n,ox'e equilnbrated society, which could
be bcuei, Ioa~anced insofar as t'~ ~. problem of regional planning is
co~acerr~ed, strategic choices should ..~e based on ~on['. term co,lsiderations
an~:l! on socio-economic factors. r~a!us, I"Ol-exar;inl, r, when dclding with
r~h~ l:~,roblem ~t" I~abour productivity, one should als,,~ consider the social
ct~,~ts associ~ted with highly iI~roductivc s.v.~:ems and reli~te~l to such
pr~blems as envirohmental protection, territt:~rial a~d ecol~omic imbal-
an,;'e~, uncml;~loyment. ~atisl'ac~ion in work and. m,~re in ge~t,~,r,~l, quality
of li:e. In i.~a~ragraphs 84 87 unemploymelat will ~e discur,:;etll in some
detaal as a~a example ot these types of problems, it is ,;lear, how,- eer, that a
st~at,.~gic choi,:e of this kind would n'eq'tire ',hal pl-~ns lot the future be
based on "i~'tela-econorllic' consideration,,, and this may be ~,¢i$' diHicult
to achieve unless it is backed by tt clear and long-I;lsting p,ll~tical ~ill.
84 Uneraployment represents a .,erious constraint to innovation in the
pr::scnt in,:lus'trial ~,)ci,:ty. This is tin extremely serious mat~t:r especially
in ct~nsider~ion of tht? fact theft in recent )'car,,, ~hext' ha,' bct'n a gradual
anJ rem~rlcable incre~se in offic al unemp!o.~men~t in alna~st all :he
h m o v a t . . ~ and the ¢h~'m~cal tn~h~.~tr~ 22q

OECI) countries, without taking i~,to consideration the phenomena ol

t
job renunciation (for e.,.ample by wt ,men). of first job non-acquisition ( by
,nasses of students) aad of the st?reading of under-employment. The
current type of development is not only unable to absorb and eliminate
this unemployment and this outcasiing, but on the contrary it le~:tds to
their aggravation. Tracle unions, ,,, hose aims are defined in connection
v,rith the cxi3ting economic and production structures, end up by
protecting v, orkers already employed and by ignoring the out-cast
masses.
I';5. 1o lace the problem .ff un,cmployment and labour in the rno:,t
developed countries means the buil t i n t of different social and production
structures as well a:, requesting nev¢ and suitable technologies for
achieving the desired objective.
~Sr,. We must therefore see ,,~he~h:r the pre,~iously discussed innovation
t.
.rues may provide a solution to th~ problem. As to the chemical industry
in par,.icular, it i.,. difficult to en,,isage increa,,,es m direct employment.
l h e problem ho,,~cver, not only concerns direct employment, but also ¢he
up arid da,,~nstream indirect omi in a systemic, integrated vision ot the
economic, production and social s.~!stem, in t hi'-, frame~'or'k the increasing
demand lot "service.¢ utilb, ing the ne~,,' products, such as those for
. . . . . i
agrtculture ([emh/at~o~ and pest o}ntrol) or those for health, undoubtedly
affords real/possibiliti:s for enl I Iovment ,~r skilled labour. Even the
production tof special materials ,Ind of complex nmnufactured goods
utili/ing such materials ma~' con.titute a labour-employing factor.
gT. It ,,~,ill be necessary to give sp :cific c..,v.sideration to labour-intcnsi,e
and relatively lov,-capi~al-intensi~ e technologies. "Appr~bpriate" technol-
ogles ha~.e been considered for the de,.eloping countries and only recently
they ha,,e also been considered for the industrialized nation,s. l a e
de,,elopment of app;opriate tec lr~ologies is a dilficult and complex
problem I hc) are sometimes Jelerred to its "utopian technolt~.gie~.'.
tlo,,,,e',er, t ~ey represent a clml ;'nee which, il o,,ercomc, will gi~e a
conlrihuliol~ In the ,,olution Of the serious issue of unemployment.
Apprt~priat, tct'hnologies alone ,,I~ould n¢.t be considered a panacea, 13131
rather a conlplelllelll:lr~ tool ol the more sophisticated and capital-
il~lensi~,e technologic,, ~hich arc ntli,,pensablc in many fields starting
from the base indus~'.ly. It is ncc;ssarv, therefore, to achieve a kind of
"technological phtrali,m" by idept fying the fields of activity and the arras
in xshLch tt is con, enient to oper~ te s~ith these appropriate IcchnologJt:s
v, ith the a~m of reatlfing a bettc:r equilibrium bet,~een centrali,'cd at~d
do.',:n~rali/¢d econon~ic structure,.
230 U. t'olo~nbo

88. Some of the forthcoming developments in the chemical industry, as

in ~ther sectors, do en'tail important i~lplication:~ as far ~Lsthe industrial
:strt~ct~Jre is concer,ed. There is. in |act, a growing ne:d to resh~pe ~9me
ind~strial ;:Lctivity on the basis of tile type and nature of the complex
p~'oiglems t.,:, be faceci, in a systemic approach ~hat requires the contribu-
tion of m~ny industrial branches a , d related discipine~i. Some of the
exer~tlples cc,nsidered in this report (.,iuch as the management of agricul-
tural prodt~ction wit~l the aid of biologic pest control,'or the development
of c,:~mple:~, ,and decentralized energy ~,,ystems, or else the management of
water systems for the various requiren~ents of society) indicate that there
is a ~aeed for industrial enterprises, c~lpable of acting as architects in the
man:tgement of the,~e problems.
89. At ;a first gicnce the ,':hemi~:al industk'y, whi~'h is so pervasive aad
whic~ interacts with the other sec~or~ of economy, might appear, t oge~:her
with ithe~elec'tronics industry that ha,,; sol;aewhat similar characte~'i.~;tic~;,to
be b~!tter prepared to assume this ne~ ~'ole. Tl:is very character, ~owever,
could inste,~d lead ~he cheraical anti electronics ir~dustries to take on
es.,;entially a service fJnction and let ,other industries;, already structure~; :~o
cope ~vith problems of a 'systemic nature (such as the automotive or the
heavy electromechanics industries), advance in these emerging fields.
While :,:his is still a matter open for conjecture, it is cle~tr that the rate and
direction of technical innove~tion will be affected by the type of structural
changes that will take place in industry as a response to the challenges of
an ever more corfiplex and detranding society.
90. Innovation - especially the '.~'pe of innovation ~ represents in this
fr.ar.~ework a factor of social reshap;ng and. therelo~,:e, a 9rimary political
thctor j~st as resistance to innovmion has import~n: so~:!.~land economic
consequences. This is not new: looking back, for e.,~anip'.e, to the
industrial revolution i~ the second half of the I:~th century, the innovation
process led to a s.imilar dramatic ~upture of the then existing economic
and social system.
The attitude of a .,~ociety towards change ts ap essential element for
innova~!iio~:. Or~e should keep in mind that there are many and different
reasons to lainder this change and encoura~.e conservation • contingent
reasons such as e~isting economic d ifficulties; reasons relating to ~ whole
series of v~'sted interests and established ~t~abas and customs, as ~,vellas
those con,:v~cted to the considerable complexity and ir,ter-relatio~ of
existing str~Jctures.
~l. The prelimina~::¢ conclusions resultir~g from this sketchy analysis of
innovatior in the chemical and related industries could also have been
If: ~ovalion and the chemical mdustrr 231

reached through the analysis of other industrial sectors. ~ e can therefore

affirr.~ teat innovation after a period of uncertainty in recent years, due to
the growing structural and social ca~astraints, could :'ind a recovery and
develop along somewhat new and still not completely defined line~. In
quanIitative terms; in future decades innovation couht be as important as
it was in the past ones. However, f~Jture innovation is to be mainly ~een
from the qualitative standpoint. In this re.'@ect it does not appear to be
deva!,Jed or confined to marginal r,)les of improvement of substantia.lly
crystallized situations; on the contrary, it seems to be characterized by a
great vitality and by much newer and more stimulating ~rcnds therelore
capable of deeply affecting the economic and social tissue and of
pro'ddirlg guidelines for its renewal.
92. This innovative development i.~ characterized by the ~,timulus t~l~ a
large number of const"aints, by tht~ need foJ much more fundamental
scientific research, by a widely int('r,:iisciplinary approach, by the devel-
opment of the areas on the border-ti:'ie between different disciplines a~,],
therefore, between different activities - in short, areas of a non-.tradi-
tional type.