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How do global manufacturing shifts affect long-term clean energy innovation? A study of wind energy suppliers

Author

Listed:
  • Doblinger, Claudia
  • Surana, Kavita
  • Li, Deyu
  • Hultman, Nathan
  • Anadón, Laura Díaz
Abstract
Clean energy technologies are important for meeting long-term climate and competitiveness goals. But clean energy industries are part of global value chains (GVCs), where past manufacturing shifts from developed to emerging economies have raised questions on a decline in long-term innovation. Our research centers on how geographic shifts in the GVC shape long-term innovation, i.e., innovation in a time frame within which “mission-oriented”, societal, or firm strategic objectives need to be met rather than tactical, near-term market competitiveness alone. Focusing on wind energy, we introduce a temporal measure to distinguish between long-term and short-term innovation, applying natural language processing methods on patent text data. We consider supply-side value chain factors (i.e., manufacturing supplier relationships with original equipment manufacturers (OEMs)) and demand-side factors (i.e., policy-induced clean energy market growth), shaping the patenting activities of 358 global specialized wind suppliers (2006–2016). Our findings suggest that the wind industry did not suppress long-term innovation during manufacturing shifts, in this case to China. After 2012 when China developed a large wind market, long-term innovation increased by 80.7% in European suppliers working with non-European OEMs (including Chinese) and by 67.2% in Chinese suppliers working with non-Chinese OEMs. Our results highlight the importance of coupling international manufacturing relationships with sizeable local demand for inducing long-term innovation. Our results advance research in innovation, GVCs, and green industrial policy with implications for several industries that can contribute to climate mitigation.

Suggested Citation

  • Doblinger, Claudia & Surana, Kavita & Li, Deyu & Hultman, Nathan & Anadón, Laura Díaz, 2022. "How do global manufacturing shifts affect long-term clean energy innovation? A study of wind energy suppliers," Research Policy, Elsevier, vol. 51(7).
    • Handle: RePEc:eee:respol:v:51:y:2022:i:7:s0048733322000828
    DOI: 10.1016/j.respol.2022.104558
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    More about this item

    Keywords

    Temporal dimension of innovation; Wind energy; Clean energy; Global value chains; Suppliers;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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