Spatial diffusion and the formation of a technological innovation system in the receiving country: The case of wind energy in Portugal

Abstract

This paper investigates how energy technologies diffuse spatiallythrough the examination of wind growth in Denmark (core) andPortugal (follower). The research draws on the empirical his-torical scaling dynamics to compare patterns of diffusion, andproposes an explanation for these patterns with the help of thetechnological innovation systems (TIS) theoretical framework. Theanalysis uncovered an acceleration of diffusion when the technol-ogy attained the new market. The mechanisms that allowed rapidadoption were found to be, among others, transnational linkagesand an improved absorptive capacity. The latter benefited frompast investments in knowledge development, imports of state-of-the-art technology and construction of a local industry assemblingavailable competencies. Targeted policies (e.g. tender-based feed-in scheme) were effective to stimulate technology transfer andboost diffusion. The linkages with the global TIS and the conceptof absorptive capacity improve the understanding of the processesinvolved in the formation of a TIS in receiving countries