Effects of technology complexity on the emergence and evolution of wind industry manufacturing locations along global value chains

Abstract

Wind energy can contribute to national climate, energy, and economic goals by expanding clean energy and supporting economies through new manufacturing industries. However, the mechanisms for achieving these interlinked goals are not well understood. Here we analyze the wind energy manufacturing global value chain (GVC), using a dataset on 389 component supplier firms (2006-2016) that work with 13 original equipment manufacturers (OEMs). We assess how technology complexity, i.e., the knowledge intensity and difficulty of manufacturing components, shapes the location of suppliers. For countries without existing wind industries, we find evidence of the emergence of suppliers only for low complexity components (e.g., towers and generators). For countries with existing wind industries, we find that suppliers’ evolution, i.e., changes in their international supply relationships, is less likely for high complexity components (e.g., blades and gearboxes). Our findings show the importance of understanding technologies along with firms and countries within GVCs for achieving policy goals

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