WEEE and ROHS: are they spurring innovation among small and medium sized electronics businesses in the U.S.?

Eight small businesses in the electronics industry from Rochester, NY were studied inorder to determine whether the European Union’s directives, Waste Electrical andElectronic Equipment (WEEE) and Restriction of Hazardous Substances Directives(RoHS) are spurring innovation in the US. Innovation was defined as any change in thedesign and manufacturing of the products, in the internal organizational structure andmanagement of the business, or in the market strategies pursued by the small businessesthat created a benefit beyond RoHS and WEEE compliance. Because WEEE and RoHSare based upon extended producer responsibility principles, this innovation wouldcomplement the findings of previous research completed on extended producerresponsibility (EPR) legislation.A case study with an in-depth interview was conducted for each of the eight companies togather data on the changes the companies had taken in their operational, design, andmanagement systems to comply with WEEE and RoHS. The collected data was analyzedto determine which of the changes were “spillover effects” that went beyond therequirements of WEEE and RoHS.The analysis led to the finding that the directives were in fact leading to innovationswithin each of the companies. While some companies had more profound innovationsthan others, the directives had prompted the companies to take on initiatives that led tomore efficient and environmentally friendly manufacturing and design processes.