Transforming Clean Energy Technologies into Viable Business Opportunities in US States

Abstract

This study examines the development of entrepreneurial opportunities for clean energy technology into viable business opportunities in US states. We argue that two features of the external environment-local attention to clean energy and objective verification of the viability of clean energy technology businesses-moderate the relationship between the existence of technological and market opportunities and the extent to which entrepreneurs develop new businesses that commercialize those opportunities. We test our arguments using a sample of clean energy startup firms in U.S. states that received venture capital investment funding between 2000 and 2006. Our empirical analysis reveals that local attention to clean energy issues in the form of increased media attention and demonstration of financial rewards in the form of acquisitions or IPOs moderate the extent to which clean energy technology opportunities are converted into viable business opportunities. Our study is relevant to both clean energy firms and...