Public–private co-evolution and niche development by technology transfer: A case study of state-led electricity system transition in South Korea

Abstract

Energy infrastructure is closely tied to national development and securing a reliable, affordable, and sustainable energy infrastructure is one of the great challenges for developing as well as developed countries. In this study, we aim to broaden our understanding of energy infrastructure transitions by analyzing how the East Asian way of development affected the energy infrastructure transition process in South Korea. This study focuses on two special features that have attracted much interest in development literature: 1) the strong state as an initiator and enabler of the transition, and 2) technology transfer as a pathway to niche development. Our case study confirms the state’s leading role—based on development-oriented political leadership and elite bureaucracy—in the transition process. However, the government transferred technology and related policies from developed countries, the transition did not go as planned, and it took much longer to deal with the bottlenecks in the private sector. However, in this process, policymakers have shown that they recognize their mistakes, adapted to the environment, and changed the policies. In addition, private companies and customers are evolving as government and external environments change. In other words, the success factors for a long state-led transition seem more related to policy learning and evolution allowing broad public–private sector co-evolution than the typical policy style of strong-state leadership and powerful execution.