An empirical examination of the development of a solar innovation system in the United Arab Emirates

Abstract

We apply the sectoral innovation systems (SIS) approach to analyze the emergence of a solar energy sector in the United Arab Emirates (UAE), a hydrocarbon-rich Middle Eastern nation with limited industrial and technological capabilities. Using qualitative research, we examine two research questions: (1) What is the current performance and functional patterns within the emerging solar system of innovation (SI), and (2) What are the main factors that have the potential to either sustain or potentially undermine the development of a SI in the country? Our analysis contributes to the literature in several ways. While earlier studies have focused on how the innovation process evolved in retrospect, our analysis of an emerging SI allows us to examine the current forces behind the creation of a new renewable energy industry. Our empirical examination of the UAE solar energy sector also reveals the prevalence of several blocking mechanisms, as well as a few factors that could facilitate the ‘catching-up’ process for the UAE solar SI, currently at its formative stage of development. These research findings may also be relevant to other Middle Eastern countries which seek a competitive position in the renewable arena but are currently in early stages of industry development.