New firms developing novel technology in a complex emerging industry: The road towards commercialization of renewable marine energy technologies

Abstract

Summary of the thesis: This thesis addresses new technology firms in a complex emerging industry. New firms are typically important participants in emerging industries because of their introduction of new innovative ideas and technologies. However, in addition to their limited resources related to funding, technology expertise and network, new firms in emerging industries are also challenged by a limited socio-political legitimacy compared to firms operating within existing industries. This thesis focuses on how firms can overcome these challenges. The context of the research has been the emerging marine energy industry, which consists of firms developing devices to harness energy from ocean waves and tides. Through multiple-case studies of firms within the industry, four papers addressing different aspects related to technology commercialization have been developed. Article 1 studies the extent of early internationalization among Norwegian marine energy firms. It shows how firms, through international activities, access resources such as funding and technology competence which help them to further develop their technology towards commercialization. Article 2 contributes to the understanding of investors’ non-financial involvement in new technology firms in the early stages of an emerging industry, and focuses on the positive contributions of different types of investors such as business angels, venture capitalists and larger corporations. Article 3 investigates how new technology firms organize their technology development and manufacturing of components in the context of the emerging marine energy industry. The study proposes and discusses three different supply chain configurations. Article 4 studies how MNCs’ assessment of different uncertainties affects their governance mode when entering an emerging industry. More specifically, if MNCs choose modes giving flexibility (minority investments) or control (internal development or acquisition). The summary chapter divides the commercialization process in the marine energy industry into three specific technological and financial gaps: 1) ‘From laboratory to scale models’, 2) ‘From scale models to the real world’, and 3) ‘Towards commercialization’. These gaps are increasingly more technologically advanced and capital demanding, and it is discussed how different investors and strategies related to internationalization and supply chain configuration, can help overcome these gaps. Finally, implications for research, managers and policy makers are discussed