Handling financial resource mobilisation in technological innovation systems - The case of chinese wind power

Abstract

To mitigate climate change, a rapid and large-scale expansion of sustainable innovations such as renewable energy technologies is crucial. China's track record of wind power development shows both speed and scale that can provide valuable knowledge of how to stimulate and maintain transformation of energy systems. The growth was made possible partly by ample access to financial capital. However, the rapid growth also led to growing pains and made the industry face increasing financial constraints. While these constraints partly relate to structures and trends that are external to the wind power innovation system, they were also a consequence of the particular path taken in Chinese wind power development. The case demonstrates that if a full-fledged industry is to be developed and sustained, a balanced growth is required and all innovation system functions need due attention, sooner or later. Conceptually, the article contributes by further exploring how mobilisation of financial resources affect and is affected by overall system dynamics.