A tale of five cities: The role of municipalities in the market diffusion of wooden residential multistory construction and retrofits

To enhance sustainable urban development, cities may contribute to the market diffusion of wooden multistory residential construction (WMC) and to wood use in the renovations of old multistory residential buildings (i.e., wooden retrofits). For the construction sector, building with wood enables a shift from the dominant concrete-based building regime, which has hindered the industrialization of building processes and the use of prefabricated modules. Although industrial wood construction has become more common in Finland in the 2000s, WMC and especially wooden retrofits have remained niche systems in residential building markets. The aim of our study is to provide information on how municipalities, especially cities at the core of urban development, may contribute to the market diffusion of WMC and wooden retrofits through policy instruments and via their involvement in local business ecosystems (BE). The interview data of the study were mainly gathered from 40 professionals representing the five case cities, but we also included other experts connected to local BEs that linked with the WMC and wooden renovation cases. We employed qualitative methods in the analyses. Our study shows that WMC and wooden retrofits could be catalyzed by both policy instruments and collaboration in BEs. Results show that policy instruments have been more effective when they include characteristics of the building projects (e.g., instrument usability differs between municipalities or private persons as building owners). To be powerful actors, municipalities could take on more active collaborative roles within the local BEs (e.g., as initiators of projects as building owners or as active enablers). As an implication of these results, city-level experimentation could benefit from a full range of policy measures and mixes to accelerate the diffusion of WMC and wooden retrofits.