Catching-up in renewable energies: the role of knowledge dimensions in sectoral innovation systems

ABSTRACT

The rapid development of renewable energy technologies and sectoral transformation can open green windows of opportunity for latecomer countries to leapfrog. The present study focuses on analyzing the relationship between the knowledge dimensions of the sectoral innovation system – including localization, diversity, concentration, and originality – and the outcomes of the catching-up process in the renewable energy sector. In this way, we distinguish between successful latecomers and leader countries. The study analyzed data from a panel of 15,600 patents in these countries from 2000 to 2015 and examined the quantitative indexes of knowledge dimensions. To illustrate the outputs of the catching-up process, we use two dependent variables: renewable equipment export and renewable electricity generation. The findings show how the evolution of knowledge dimensions impacts technological catch-up in both leader and successful latecomer countries in different ways. While knowledge localization is crucial in leader countries, latecomer countries benefit from concentration and originality.

KEYWORDS:

• Sectoral innovation system
• catch-up
• renewable energy
• knowledge dimensions
• patents
• green windows of opportunity

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 In several studies, India and China have been mentioned as successful latecomer countries in renewable technologies that actively contribute to the green transition (e.g. Lema and Lema 2012; Oh, Yoon, and Lee 2016).

2 In fact, barriers to entry are the obstacles or hindrances that make it difficult for new or small companies to enter a given market. These may include technology challenges, government regulations, patents, start-up costs, or education and licensing requirements.

3 These eight countries are Germany, Denmark, the UK, Korea, Japan, the US, China, and India.

4 Tertiary enrolment ratio is calculated by dividing the number of students enrolled in tertiary education regardless of age by the population of the age group which officially corresponds to tertiary education.

5 Derwent World Patent Index

6 The high correlation coefficient between TotalEnergyGeneration and LnGDPpercapita suggests both variables should not be entered in the model.