Energy Innovation Policy Research Articles

Weaving an innovation network from the middle-out: the case of the renewable energy ecosystem

BackgroundRenewable energy (RE) systems are becoming a central component of the clean energy transition and are often seen as the way to combat climate change. Their establishment requires innovation, investments, and deployment policies for emerging technologies. Governments around the world are increasingly trying to create and support the energy-tech and climate-tech innovation ecosystems in their attempt to promote an innovation-supporting environment. However, energy innovation policies are often aligned with the dichotomous notion of technology-push and market-pull and overlook the social, political, and cultural contexts in which RE innovative technologies are embedded, and the multiple actors and interactions that are associated with their development. By combining the Middle-Out Perspective (MOP) and innovation literature, this paper argues that an innovation ecosystem could be weaved from the middle-out.MethodsThis paper analyzes the case of ‘Eilat-Eilot Renewable Energy Initiative’ and Israel’s RE innovation ecosystem creation through the lens of the MOP and applies a socio-technical interpretation to the push and pull terminology. Process tracing methodology was applied to trace a sequence of events to determine whether an actor was pushed or pulled, the formation of a network of actors, and its evolvement to an energy innovation ecosystem from the middle-out. Data for the analysis were collected from interviews, policy papers, media articles, and Governmental decisions.ResultsThe analysis demonstrates how middle actors push the implementation of RE technologies in Israel, and at the same time pull decision-makers and other middle actors to promote the low carbon transition. The push and pull forces and the interactions between actors lead to the engagement of new stakeholders in the innovation network, the adoption of more ambitious RE targets and supporting policies, and the creation of an effective RE innovation ecosystem.ConclusionsThis paper uses the MOP as an analytical framework and the push and pull terminology to demonstrate how a middle actor initiates and develops an actor-network by interacting with other actors. As this network broadens, it forms an effective innovation ecosystem. A network of actors has the potential to lead change, provide innovative ideas, initiate research, encourage investments, create employment possibilities, and promote regional sustainable development.

Exploring the scope of regions in challenge-oriented innovation policy: the case of Schleswig-Holstein, Germany

ABSTRACT Recently, challenge-oriented innovation policy has become increasingly popular in political and scientific discussions. However, the extent to which such a challenge-based thinking has entered regional policy making is relatively unclear. This paper examines the scope of the regional level in promoting challenge-based innovation, focusing on the recent renewable energy innovation policy in Schleswig-Holstein, Germany. The results show that while regional innovation policy in Schleswig-Holstein aims to address several structural and transformational systemic failures, many other problems and challenges remain, as they are beyond the capacity of a single region to address. Based on this analysis, we draw four conclusions. First, similar to many other structurally weak regions, policymakers in Schleswig-Holstein are struggling with some of the same key challenges that the policy was originally designed to address. Second, multi-scalar governance and inter-scalar coordination are essential for managing regional sustainability transitions. Third, challenge-driven innovation policy is an extension of, rather than a replacement for, conventional regional innovation policy. Finally, environmental and economic goals should be well balanced in challenge-driven regional innovation policy design.

Are government energy technology research, development, and demonstration budgets converging or diverging? Insights from OECD countries

ABSTRACT Accelerating the pace of energy technological innovation is essential to curb global climate change and build a clean energy system. Based on this idea, from the perspective of renewable energy technology gaps across countries, this study presents a thorough empirical analysis of the convergence of energy technology research, development, and demonstration (RD&D) budgets across OECD countries over 1985–2017. In doing so, we apply two-regimes threshold autoregressive approach to account for heterogeneity, nonlinearity, and transition path in energy technology RD&D convergence. One observation is that only a small number of advanced countries namely Canada, Japan, and the U.S. follow a nonlinear process and exhibit partial convergence in energy technology RD&D budgets with Japan as a transition country. Interestingly, our results also provide clear support for the global convergence of energy technology RD&D budgets once accounting for the two regimes jointly. These trends in national energy innovation policies could arguably help Canada, Japan, and the U.S. to drive up their energy RD&D trajectory into the future, suggesting that these countries would be able to achieve a more sustainable energy innovation supply system.

How has external knowledge contributed to lithium-ion batteries for the energy transition?

SummaryInnovation in clean-energy technologies is central toward a net-zero energy system. One key determinant of technological innovation is the integration of external knowledge, i.e., knowledge spillovers. However, extant work does not explain how individual spillovers come about: the mechanisms and enablers of these spillovers. We ask how knowledge from other technologies, sectors, or scientific disciplines is integrated into the innovation process in an important technology for a net-zero future: lithium-ion batteries (LIBs), based on a qualitative case study using extant literature and an elite interview campaign with key inventors in the LIB field and R&D/industry experts. We identify the breakthrough innovations in LIBs, discuss the extent to which breakthrough innovations—plus a few others—have resulted from spillovers, and identify different mechanisms and enablers underlying these spillovers, which can be leveraged by policymakers and R&D managers who are interested in facilitating spillovers in LIBs and other clean-energy technologies.

Bringing rigour to energy innovation policy evaluation

Clean energy innovation is pivotal for low-cost energy sector decarbonization. Substantial public research and development funding is spent on energy innovation. Generating more evidence on which support mechanisms most effectively drive clean energy innovations, and why, could improve their design moving forward. In this Perspective, we discuss five challenges that researchers often face when attempting to rigorously evaluate energy innovation policies and public subsidy programmes. We recommend solutions, such as developing new innovation outcome metrics that consider unique features of the energy sector and building databases that cover long time periods. We also suggest that researchers and funding agencies work together to implement randomized control trials or conduct quasi-experimental evaluation of existing programmes and policies wherever possible. Evaluating the impact of renewable energy innovation research funding is important to design more productive research and development programmes. Pless et al. discuss the key challenges in effective evaluation of research funding outcomes and identify solutions.

EUROPEAN TENDENCIES OF INNOVATIVE DEVELOPMENT FOR ENERGY SECTOR AND FINAL ENERGY CONSUMPTION

In order to identify the EU tendencies and priorities a systematic study of the changes that occurred during recent years in the EU energy policy and energy innovation policy has been conducted. The characteristic of modern tendencies, goals, main objectives and directions of innovative development in the energy sector and the areas of final energy consumption of the EU is given. An informational model on the dynamics of forming the political and strategic factors, which found direction of innovative development in the energy sector of the EU, has been constructed. The peculiarities of innovative processes connected with functioning the energy business, energy markets and energy efficient technologies market as well as the priorities of innovative development in the areas of energy production, transmission, distribution and consumption are considered. The importance of the transition in the energy sector to service-oriented business models that are more marketable in the context of transforming the energy industry and energy markets is noted. The tendencies of changes in the European energy regulatory environment, which took place as a result of the development and strengthening the commercialization of innovations in the conditions of energy transition and changes in the European energy landscape, are presented. The characteristic of the strategic priorities and conditions necessary to strengthen the innovative development and the spread of energy innovation in Ukraine in the long-term perspective is given.

Working towards a framework based on mission-oriented practices for assessing renewable energy innovation policies

Abstract Mission-oriented programs have regularly been used as innovation policies when governments (or societies) are faced with complex challenges that demand radical innovations and multiplayer coordination. Nowadays, the global climate-change question, including the energy source issue, is an example of a mission-oriented challenge. Several countries have adopted energy programs with mission-oriented characteristics. Brazil, for example, launched three programs (PAISS, PAISS 2 and Inova Energia) to foster innovations in renewable energy sources such as biofuels, solar and wind power. These programs dealt with radical innovations, big challenges and multiplayer coordination, but did not use some important mission-oriented best practices. Based on an extensive literature review, this article's aim is to present a framework developed to verify whether renewable energy innovation programs meet the requirements for being classified as mission-oriented programs. It is assumed that mission-oriented programs can contribute to the effectiveness of renewable energy innovation policies. The case of Brazil and its Inova programs is used as an example of how to apply this framework, although the latter was designed for application to any renewable energy mission-oriented program.

Scaling up sustainable energy innovations

Current electricity grids do not fit the needs and challenges of the 21st century, such as the need to transition to renewable energy sources and the variability in power supply concomitant with such energy sources. In this context, smart electricity grids have been proposed as a solution. A large number of pilots and experiments have been set up, but a key challenge remains how to upscale them. Upscaling is critically important to enable a wide-scale integration of renewable energy sources. This paper mobilises literature on the strategic management of experimental niches to explore the upscaling of smart grids in the Netherlands. On the basis of existing literature, a typology of four different patterns of upscaling is proposed: growing, replication, accumulation, and transformation. The relevance of this typology to understanding upscaling of smart grids is explored in a comparative qualitative case study design. On this basis we argue that the building of broad and deep social networks is important for growing and replication; articulating and sharing expectations is important for replication; and broad and reflexive learning processes are critical to transformation and replication. The paper concludes by arguing that these findings can provide important guidelines for future energy innovation policies.

Creating Markets for Energy Innovations - Case Studies on Policy Design and Impact (Dissertation Synopsis)

Creating Markets for Energy Innovations - Case Studies on Policy Design and Impact (Dissertation Synopsis)

The optimal time path of clean energy R&D policy when patents have finite lifetime

We study the optimal time path for clean energy innovation policy. In a model with emission reduction through clean energy deployment, and with R&D increasing the overall productivity of clean energy, we describe optimal R&D policies jointly with emission pricing policies. We find that while emission prices can be set at the Pigouvian level independently of innovation policy, the optimal level of R&D subsidies and patent lifetime change with the stages of the climate problem. In the early stages of clean energy development, innovators find it more difficult to capture the social value of their innovations. Thus, for a given finite patent lifetime, optimal clean energy R&D subsidies are initially high, but then fall over time. Alternatively, if research subsidies are kept constant, the optimal patent lifetime should initially be long and fall over time.

Transitioning policy: co-production of a new strategic framework for energy innovation policy in the Netherlands

This article describes policy–science interactions in a transition process in which we were involved as scientists. We describe the interactions that occurred in a project for the fourth National Environmental Policy Plan in the Netherlands. The project was successful in that it produced a new concept and set of principles for policy to deal with persistent problems such as global climate change, which were used in the national policy plan. The new concept was that of transition and the principles were: policy integration, long-term thinking for short-term action, keeping multiple options open and learning-by-doing and doing-by-learning. Retrospectively, we ask ourselves: what factors facilitated the acceptance of the first ideas about transition management? Reconstructing the events and drawing on interviews with key individuals involved, we have tried to find the key factors for the adoption of the ideas developed in the project. Finally, we reflect upon our role as scientists-advisors and the role of others in the development of a new story line and set of principles for policy. Our own assessment, 8 years later, is that we were engaged in boundary work.

Survival of the greenest: evolutionary economics and policies for energy innovation

This paper aims to explore the possible contribution of evolutionary economics to environmental policy-making, in particular with respect to innovations in energy technology. Evolutionary economics offers insights into the mechanisms that underlie innovations, structural changes and transitions, therefore making it of great value in framing policies aimed at stimulating environmental innovations and transitions to sustainable development. The paper identifies ‘bounded rationality’, ‘diversity’, ‘innovation’, ‘selection’, ‘path dependency and lock-in’, and ‘co-evolution’ as the main concepts in evolutionary economics. These concepts are subsequently used to formulate guidelines for designing energy innovation policies. We evaluate current Dutch policies related to energy technologies against this background and examine the development of three particular energy technologies within the adopted evolutionary economics framework, namely fuel cells, nuclear fusion, and photovoltaic cells. We conclude that in order to incorporate the core concepts of evolutionary economics, governmental technology policies should focus more on the diversity of technologies, strategies and businesses, rather than on economic efficiency as the key goal. It is further found that evolutionary concepts conflicting with traditional growth objectives are rarely incorporated in Dutch energy innovation policies.

Options for reducing CO 2 emissions from the energy supply sector

Deep reductions in CO 2 emissions from the global energy system are technically feasible over the course of the next century, using various combinations of low CO 2 energy technologies. Moreover, an energy future characterized by deep emissions reduction over the longer term is plausibly achievable with costs for energy services that are approximately the same as estimated future costs of energy services based on conventional energy — given adequate time (several decades) and an economic and political climate conductive to the needed innovations. Strong and sustained investments would be needed for research and development, demonstration and diffusion of a wide range of energy technologies characterized by low or zero CO 2 emissions. Since at present the levels of investment are low and declining, new public and private sector energy innovation policies are needed.