2 research outputs found
Innovation Paths in Wind Power: Insights from Denmark and Germany
Denmark and Germany both make substantial investments in low carbon innovation, not
least in the wind power sector. These investments in wind energy are driven by the twin
objectives of reducing carbon emissions and building up international competitive
advantage. Support for wind power dates back to the 1970s, but it has gained particular
traction in recent years thus opening up new innovation paths. This paper explores the key
features, similarities and differences in innovation paths in Denmark and Germany and
sheds light on their main determinants.
The paper shows that there are many commonalities between Denmark and Germany
when it comes to innovation pathways, both in technological and organisational
innovation. In turbine technology, the similarities are the constant increase in turbine size
and quality. The key difference to be found is the relative importance of different turbine
designs. The ‘Danish Design’ remains the global standard. The direct drive design, while
uncommon in Denmark, dominates the German installation base. Direct drive technology
has thus emerged as a distinctly German design and sub-trajectory within the overall
technological innovation path.
When it comes to organising wind turbine deployment, both countries have moved along
broadly similar paths. There are now fewer turbines deployed than at any time in the past
10 to 20 years, but on average these are concentrated in larger projects and the production
capacity and total electricity output has increased significantly in both countries. The key
difference is in the role of the offshore segment in deployment: Denmark has been a
pioneer in the offshore segment, which has hitherto played a much smaller role in
Germany.
While this paper shows that there are many common features between the two countries, it
also identifies a diversity of pathways, or rather, a co-existence of different subtrajectories
in both core technology and in the organisation of deployment. It is as yet
unclear whether the future will bring more convergence or divergence.
To address this, the paper explores specific determinants of innovation paths: government
policies, demand conditions, geography, value chains, and the strategies undertaken by
firms. It demonstrates that the innovation paths common to both countries have roots in a
confluence of determining factors which are mainly due to social and political priorities,
preferences and decisions at national level. However, the sub-trajectories, which create variation between Denmark and Germany, differ in this regard. They tend to have roots in
‘given’ geographical conditions and in company-level technology choices. In other words,
many of the similarities in innovation paths between Denmark and Germany have
common national causes, while company-specific strategies also influence the innovation
paths in significant ways. This raises important questions about the national specificity of
innovation paths in wind power development.
Finally, the paper briefly addresses the increasing global interconnectedness of wind
technology markets and the role of emerging new players, such as China and India
Export processing zones: the case of the Republic of Korea. by Derek Healey and Wilfried Lutkenhorst
The establishment of export-processing zones as a means of attracting foreign investment and promoting manufactured exports has become a widely applied industrial policy approach in a broad range of developing countries