Abstract
In this paper, we take the theoretical perspective of innovation system dynamics and apply this to Photovoltaic (PV) solar energy technology in the Netherlands. The history of the development of the PV innovation system is analysed in terms of seven key processes that are essential for the build-up of innovation systems. We show that large fluctuations are present in the processes related to guidance of the search and market formation. Surprisingly, entrepreneurial activities are not too much affected by fluctuating market formation activities. We relate this to market formation in neighbouring countries and discuss the implications for policy making.
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