Coordination and legitimacy in the Australian biofuels innovation system 1979 - 2017

Abstract

Like many countries, since the 1980s, Australia has introduced a range of government policies to support the development of a biofuels industry. Despite growth in the use of biofuels over this period industry development has not progressed to the extent seen in many of these other countries. This paper uses the technological innovation systems perspective to guide an historical event analysis of the biofuels innovation system within Australia over a period of almost 40 years. Results suggest two main system dynamics have been present: a series of science and technology cycles that aimed to progress biofuel technologies toward commercial competitiveness with incumbent petroleum industries; and several short lived industry development cycles that were weakened by limited market formation mechanisms and insufficient socio-political legitimation. It is concluded that the introduction of biofuel quotas in the absence of sufficient industrialisation of biofuels, while promoting some growth, undermined their effectiveness. The results are discussed in terms of the need for policy layering to support effective system development.