Abstract
Abstract Chapter 5 turns to the case of China. It shows that wind and solar firms—often in outright defiance of central government goals—relied on local-level support for large-scale manufacturing in the process of industrial upgrading. Contrary to the ambitions of policymakers seeking to build autonomous domestic industries, these capabilities were brought to bear on product development in collaboration with global partners. The chapter uses firm-level data to explain the establishment of capabilities in innovative manufacturing—research and development skills focused on the commercialization and rapid scale-up to mass production. The second half of the chapter examines the role of collaborative advantage in allowing firms to choose their specialization in innovative manufacturing. It shows how collaborative advantage enabled renewable energy firms to build on local government institutions for mass production that diverged sharply from central government goals.
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