Invention, Innovation and Diffusion in the European Solar Power Sector

The purpose of this paper is to provide an economic analysis of the technology development patterns in the European solar power sector. The three classic Schumpeterian steps of technological development, invention, innovation and diffusion, are brought together to give a non-linear picture of technological development. An emphasis on public policy is presented in the paper to analyse what effect policies have on different stages of the technological development chain. Three different econometric methods will be used. The studied time span will cover EU 15 during the period 1990-2017. The policy-oriented part adds a perspective where the policy can affect different parts of the technological change chain in different ways.

The paper is motivated by the fact that the different part of the technology chain has been analysed separately but seldom in a coherently together making interaction effects absent. Furthermore, it will be useful for policy makers to get a better picture of what policy affect which development stage. The main policy implication will be to increase the knowledge about what technology pull- and push policies affect different development stages – hence a policy maker who want to promote a certain outcome in relation to alternative energy technologies can adopt appropriate instrument.

By: Jonas Grafström