Technology-push and demand-pull factors in emerging sectors: evidence from the electric vehicle market

Abstract

Despite consensus on the mutual dependence of the technology-push and demand-pull factors, their interactions can depend on industry life cycles and domestic market status. Using patent and Google search traffic data, this study brings robust evidence supporting the hypothesis that technology development occurs ahead of market demand in the U.S. electric vehicle sector, while this is not the case in Germany. Market demand does not precede technology development in either country. This shows the importance of the technology-push factor and the role of the lead market in the electric vehicle sector. This study elaborates technology-push and demand-pull hypotheses with a focus on industry life cycles and domestic market status and contributes to the discussion on technology-push, demand-pull and mixed policies in emerging sectors.

Keywords:

• Technology-push
• demand-pull
• emerging sector
• electric vehicle
• Google search traffic

JEL Classifications:

• O33
• O38
• L62
• Q55

Acknowledgements

I am grateful for insightful feedback from participants at a number of conferences and seminars. I also would like to thank an associate editor Sandro Montresor, and two anonymous reviewers for their helpful suggestions. All errors are mine.