Innovation and market regulation: evidence from the European electricity industry

This paper studies the effects of changes in the level of product market regulation on the industry-level innovation intensity in the EU electricity sector during years 1990–2009. In order to test the impact of deregulatory policies on the propensity to innovate in energy technologies, we match data on R&D budgets and European Patent Office patent applications from International Energy Agency and Eurostat Databases with the Organisation for Economic Co-operation and Development indexes of product market regulation. The analysis addresses innovations in the traditional electricity-related technologies, but keeping aside renewable energy technologies. Findings show an increase in patenting activities following market deregulation, measured along three factors: entry barriers, public ownership and vertical integration. In particular, econometric results suggest that policies aimed at reducing vertical integration – i.e. to unbundle networks from energy generation and supply – have a positive impact on innovation activity. Results are robust to the introduction of controls for country-level public R&D expenditures in the electricity field.     

Exploring the determinants of renewable energy innovation considering the institutional factors: A negative binomial analysis

Replacing traditional energy sources with renewable energy sources is an effective way to achieve emission reduction targets. Focusing on OECD countries from 1990 to 2018, this study examines the determinants of renewable energy innovation by applying a negative binomial model. There are four main findings: (1) Renewable energy patents show an inverted U-shaped curve, peaking in 2010; solar energy accounts for the largest share of patents; and the US is the largest renewable energy innovator, followed by South Korea and Germany. (2) Renewable electricity installed capacity, share of expenditure on research and development (R&D) of GDP, and implementation of the Kyoto Protocol are all found to promote innovation; by comparison, the proportion of renewable energy power generation of the total electricity generating capacity shows a negative effect. The price of crude oil shows no significant effect due to the offset effect between the European and non-European country groups. (3) Share of R&D expenditure of GDP is confirmed to be the force driving technological progress in the solar, geothermal, and marine sectors, and it plays a more important role in Japan than in the US or Europe. Implementation of the Kyoto Protocol has no significant effect on innovation in European countries. (4) Three institutional factors—namely, the legal system and property rights; regulations; and freedom to trade internationally—are confirmed to be the driving forces, whereas this is not the case for the growth and free circulation of money. Policy implications for the optimization of the renewable energy sector's structure, the enhancement of renewable energy capacity, and the improvement of R&D investment and the institutional environment are proposed. Future research should shed light on a broader sample, using micro-level and socio-technical analysis.     

Sustainable energy and environmental impact: role of renewables as clean and secure source of energy for the 21st century in Jordan

In this article, present and future energy consumption, electricity demand, potential of renewable energy sources and national energy policy in Jordan are presented. The related environmental impacts are discussed from the sustainable development point of view, including the future role of renewable energy sources. Jordan is a net energy importing country, with almost 96% of its annual needs relying on imported crude oil and refined products from neighboring Arab countries. Due to increasing fossil fuel combustion to meet growing national energy demand, especially electricity generation, air pollution is becoming an important issue in urban areas. Profound cuts in current emission rates, including carbon dioxide, are possible at a bearable cost, and that the government must now invest in low carbon options because of the long lead in time of some technologies. A great deal more could be done to improve energy efficiency, and new and renewable energy schemes should be advocated on different levels. To achieve this, all obstacles including institutional barriers to investment in renewable technologies and national energy plan need to be addressed urgently. Thus, the government is invited to create a Sustainable Energy Unit, which will coordinate government cross-departmental thinking and provide adequate information to the public and to private investors.     

Energy R&D: investment challenge

Despite dependence on foreign oil that keeps countries like the US embroiled in the Middle East, and amid fears of global warming, research and development (R&D) funding for energy technologies has declined significantly during the last two decades throughout the industrial world. Investments in energy technology R&D, and in associated human and institutional capacity, are fundamental to our ability to respond to changing economic, energy, and environmental needs.Although there has been a recent wave of interest in R&D policy in general, and energy R&D in particular, this has not been translated into the needed increases in funding. In most OECD (Organization for Economic Co-operation and Development) member countries, government energy technology R&D budgets have been declining significantly in real terms since the early 1980s. The trends are particularly troubling given the pressing need to develop and utilize the clean energy and low carbon fossil-fuel energy technologies that will be critical in meeting our future energy needs, while addressing the local and global environmental problems we are facing.     

Effective R&D investment planning based on technology spillovers: the case of Korea

This study was performed to discuss an R&D investment planning method based on the technology spillover among R&D fields, from the point of view of technology convergence. The empirical analysis focused on a particular R&D group, such as university departments and specialized research institutes, since local technology combinations are more effective than distant combinations to create a new technology, according to previous research. In addition, worldwide technology competition is increasing, and with the recent convergence of various technologies and industries, strategies for R&D selection and resources allocation of particular R&D groups are becoming increasingly important. The empirical analysis uses a modified Decision Making Trial and Evaluation Laboratory method combined with information on patent citations to resolve the latent problems of the existing model, using as an empirical example the case of the Korea Institute of Geoscience and Mineral Resources (KIGAM), specialized in the geology and resources development R&D area. Through the empirical analysis, the KIGAM’s current R&D investment status is considered, and a reasonable R&D investment planning is suggested from the perspective of technology spillover. By using this framework, the magnitude of technology spillover from the R&D investment planning within a particular R&D group can be measured based on objective quantitative data, and the current R&D investment can be compared with recent global trends.     

Energy and cryoengineering

Various aspects of the energy problem are described from the standpoint of cryoengineering including energy systems, energy growth, and energy policy. An R & D taxonomy is developed which is then used to organize energy-related cryoengineering technology. Several of these technologies are discussed.     

Increasing the return on investment from federally-funded research and development

Abstract

Each year, the United States invests approximately $495 billion in research and development (R&D) – about a quarter of the total global investment. While the private sector accounts for about 67% of U.S. investment, the Federal government plays a critical role in funding R&D, particularly in areas that address societal needs in which the private sector does not yet have sufficient clear or strong incentive to make the required investments. The Federal government invests approximately $150 billion each year in R&D conducted at Federal laboratories, universities and other research organizations. As Federal R&D investments wind down or are completed, additional work is often still needed to translate the knowledge accrued from that R&D into products and services that will improve lives and provide economic growth. Technology transfer is the process by which existing knowledge, facilities or capabilities developed through R&D are utilised to fulfill public and private need. The transfer of technology from federally-funded R&D to the private sector is crucial to realising the taxpayer’s return on investment in the Federal R&D ecosystem. However, moving innovations from the lab to the market is more than inventing products for people to buy. Technology transfer is about creating jobs and growing the economy; ensuring a strong, secure, and resilient Nation; and improving Americans’ health and environment, fostering the conditions for America to maintain leadership in global innovation.     

Assessing the Effects of International Trade on Private R&D Expenditures in the Food Processing Sector

This study empirically investigates the effects of imports and exports on private research and development (R&D) expenditures in the food processing sector. An analytical framework discussing the various effects of international trade on R&D activities is presented. This is followed by an empirical analysis that uses a dynamic empirical specification for current R&D expenditures and for a cumulative measure of R&D stock. The empirical investigation is applied to a panel dataset covering Organization for Economic Cooperation and Development's countries. The empirical results show that increases in import intensity levels induce reductions in private R&D expenditures whereas increases in export intensity levels promote larger private R&D expenditures. These outcomes imply that the R&D-enhancing effects of exports are countered by the R&D-reducing effects of imports.     

Long-term effects of structural changes in the Brazilian electricity matrix

The Brazilian 2015 Intended Nationally Determined Contribution proposes a reduction of 43% in its greenhouse gas emissions by 2030, compared to its 2005 emissions. In terms of the contribution of the Brazilian electrical sector to achieve this target, it commits to increase the use of renewable energy sources, other than hydroelectricity, and an efficiency gain of 10% by 2030. Considering these targets, this paper estimates the economic and CO₂ emissions effects of such propositions using input–output analysis. The estimates are based on eight different future electricity matrices scenarios (2030 and 2050) developed by specialists within the Energy Scenarios Platform. On the one hand, achieving cleaner electrical production requires large investments. On the other hand, a reorganization of the sector leading to increased use of renewable energy sources produces GDP and employment growth. The results show that the net effects are positive in the medium and long run. Brazilian GDP growth may range from 0.61 to 1.24% per year by 2030 and from 0.66 to 1.26% per year by 2050, and total labor demand may reach 630 thousand new employees in 2030 and 685 thousand jobs in 2050. Regarding the reduction of CO\(_2\) emissions, a maximum saving of 4 million tons by 2030 and 1 million tons by 2050 is expected. Therefore, according to the scenarios analyzed, although investing in renewable electrical sources demands more investment, their operational costs are lower, such that the extra expending is more than offset. Hence, the economic benefits from such changes more than compensate the costs of investing in such efforts.     

How to design a dynamic feed-in tariffs mechanism for renewables – a real options approach

Feed-in tariffs (FITs) are among the most favoured policies with which to drive the deployment of renewable energy. This paper offers insights into quantifying dynamic FITs to realise the expected installed capacity target with minimum policy cost under uncertainties of renewable intermittence and technology learning. We incorporate real options and use stochastic dynamic programming to model the strategic behaviour between policy-maker and investor and extend the one-time investment decision described by Farrell et al. [2017. ‘Specifying an Efficient Renewable Energy Feed-in Tariff.’ The Energy Journal 38: 53–75] to multiple-period decisions. An approach that combines binary tree scenario generation and a least squares Monte Carlo method is used to numerically identify the optimal FITs plan in practice. China’s offshore wind power investment is used as a case study to investigate the relationships among the optimal dynamic FITs level, the total policy cost, the expected capacity target, and the learning effect. The simulation results demonstrate that our proposed dynamic FITs can track the changes in technology learning well and that they can avoid the inefficiency of fixed FITs in stimulating technology adoption in the initial periods, along with overpayment by the policy-maker.     

Vaccine R&D in Brazil: The effectiveness of push and pull regulations

Government regulations can guide the technological progress, investment in research and development (R&D), and institutional organization of a specific sector. In this context, using patent data, this study aimed to analyze the effectiveness of three laws that pertain to R&D in Brazilian pharmaceutical market for vaccines. The results reveal an increasing international interest in the Brazilian market since the promulgation of the Industrial Property Law. Despite its limitations, this study reveals significant efforts and promising results in Brazil with respect to ensuring that technological and industrial policies and strategies incorporate innovation in vaccine R&D and change the economy's competitive circumstances.     

The effects and time lags of R&D spillovers in Brazil

Government's innovation investments for science intensive sectors, such as the capital goods industry for developing countries play an important role in technology dissemination; however, few studies have addressed this issue. This study is conducted in the framework of a developing economy (Brazil), and aims to estimate the spillover effects throughout the industry resulting from public investment in innovation, as well as the spillovers of R&D and management investment performed by the capital goods industry through the rest of the industrial sector, and also the time lapse between the occurrence of innovative investment and output growth due to such expenditures. The results of the estimated econometric model exhibit significant and positive spillover effects by the government R&D expenditures for the capital goods industry with a three-year lapse, as well as a one-year lag for the occurrence of output effects on the other companies of the manufacturing sector, resulting from innovative investments by the capital goods industry.     

Digitalization and CO2 emissions: Dynamics under R&D and technology innovation regimes

New digital technologies help to curtail those that are carbon intensive but are accompanied by CO₂ emissions due to their own energy demand. Whether digitalization relates to increased or decreased carbon emissions may depend on the sophistication of an economy's research and development (R&D) output. This study explores the R&D-induced regime transition that governs the relationship between digitalization and CO₂ emissions. The study seeks evidence of the environmental Kuznets curve hypothesis and tests it with a panel smooth transition regression (PSTR). Employing this estimator with two R&D output regimes makes it possible to account for year- and country-varying effects of digitalization, human capital, and country income level on CO₂ emission. The research covers 55 high- and middle-income economies from 1996 to 2019. The paper finds that the transition process is driven by R&D output level – measured in technology patents per country inhabitants. The findings support the environmental Kuznets curve hypothesis and confirm that CO₂ emissions have an inverted U-shaped relationship with digitalization and income level. This nonlinear relationship transitions smoothly in the exogenous R&D output level. The digitalization indicator in the lower R&D regime has a significant point estimate of 0.07; in the higher regime, the estimate is −0.14. The R&D output threshold at which the transition function switches between the two regimes corresponds to a level of 39.9 technology patents per million inhabitants.     

The role of firm R&D effort and collaboration as mediating drivers of innovation policy effectiveness

This paper investigates the impact of firm R&D policies supporting R&D investment and collaboration on company innovation performance. Individual and cooperative R&D investments are considered as intermediate outcomes (input and behavioural additionality, respectively) contributing to the final outcome (probability of product innovation). We use a treatment random coefficient model to estimate the policy additionality on a panel data-set merging the third and the fourth wave of the Italian Community Innovation Survey. Results show a significant and positive policy impact on company propensity to product innovation only for the input additionality and for the interaction between the input and the cooperative additionality. This occurs when company cooperation scores overcome a given threshold, in accordance with the assumption that cooperation entails benefits but also coordination costs.     

R&D and Productivity in High-Tech Manufacturing: A Comparison between Italy and Spain

Using data for 12 manufacturing industries over the period 1980–2006, we perform for Italy and Spain a dynamic panel estimation of the long-run elasticity of total factor productivity (TFP) with respect to R&D capital. In spite of recording a level of R&D capital lower than Italian industries, the technology-based industries in Spain have experienced a similar or higher long-run impact on TFP. This is mainly attributable to what occurred from the mid-1990s onwards when, thanks to increasing R&D efforts, the Spanish industries have been able to catch up with respect to the Italian ones. These findings suggest that, also in countries classified as technology followers, R&D investment is a crucial condition for boosting manufacturing productivity.     

Assessing coreness and intermediarity of technology sectors using patent co-classification analysis: the case of Korean national R&D

Rapid technological advancements and increasing research and development (R&D) costs are making it necessary for national R&D plans to identify the coreness and intermediarity of technologies in selecting projects and allocating budgets. Studies on the coreness or intermediarity of technology sectors have used patent citations, but there are limitations to dealing with patent data. The limitations arise from the most current patents and patents that do not require citations, e.g. Korean patents. Further, few or no studies have simultaneously considered both coreness and intermediarity. Therefore, we propose a patent co-classification based method to measure coreness and intermediarity of technology sectors by incorporating the analytic network process and the social network analysis. Using IPC co-classifications of patents as technological knowledge flows, this method constructs a network of directed knowledge flows among technology sectors and measures the long-term importance and the intermediating potential of each technology sector, despite the limitations of patent-based analyses. Considering both coreness and intermediarity, this method can provide more detailed and essential knowledge for decision making in planning national R&D. We demonstrated this method using Korean national R&D patents from 2008 to 2011. We expect that this method will help in planning national R&D in a rapidly evolving technological environment.     

Using patents and publications to assess R&D efficiency in the states of the USA

Even with the USA spending the largest amounts in R&D, its share in total patent grants worldwide has been declining. This decline is also evident in its share of world scientific publications. These developments have been termed by some as the “American Paradox”. Extant research on R&D efficiency and technological innovation capability has considered the USA as a homogeneous entity and has not focused at the sub-national level. This paper analyses the R&D efficiency of 50 US states and the District of Columbia. R&D efficiency is calculated as the ratio of patents granted and scientific publications to R&D expenditures. Only 14 states out of the 51 regions are found to exhibit positive changes in R&D efficiency between 2004 and 2008. Comparing this performance with that of the BRICS nations over the same period we find that Brazil, India, China and South Korea show significant improvements in R&D efficiency with India taking the lead. This research identifies the states in the US with the highest R&D efficiency and presents benchmarks which can be followed by policy interventions. The paper highlights the importance of conducting analyses of R&D efficiency using patents and publications at the sub-national level for informed policy making.     

Offshoring and Improvisational Learning: Empirical Insights into Developing Global R&D Capabilities

This study examines how global research and development (R&D) capabilities develop through improvisational learning. Using empirical insights from two large Swedish multinational companies and their early learning from establishing a captive R&D offshore unit in Bangalore, India, we use multicase inductive analysis to identify how companies cope with challenge related to coordinating R&D across geographically dispersed units through improvisational learning. Using a cooperative stage model analysis, we explain how improvisational learning occurs during the setup, start-up and ongoing stages of establishing captive R&D offshoring operations. We find that improvisational actions lead to developing routines as a response to solving unexpected coordination challenges and help explain how global R&D capabilities develop.     

An overview of power generation in New Zealand

Abstract

Two distinct risks cast a shadow over the sustainability of the existing energy mix. One is security of supply. The diversification of energy sources – both geographical and technological – could mitigate those risks. The second is environmental. Climate change in particular has raised questions about the sustainability of the current fossil fuel emission-intensive mix.

The government is currently investigating whether current R&D priorities and programmes are adequately focused and resourced to bring on-stream the energy technologies of the future. The future energy scenarios explored in the National Energy Strategy will help deliver a view of where some of the potentials and roadblocks currently lie in respect of new energy technologies. This in turn will guide the development of a roadmap of energy research priorities.

Equally important is gaining a better understanding about the actual distribution of research effort on the energy-related technologies and market deployment of different technologies.

While science, research and innovation in a global and highly competitive marketplace coupled with consumer preferences will be a decisive influence, timely access to new technologies and energy resources is of significant national interest.     

Sustainable multi-period electricity planning for Iskandar Malaysia

This paper presents the current situation and projected planning of the electricity generation sector for Iskandar Malaysia by implementing a model to optimise the cost, utilise the usage of available renewable energy sources, and achieve carbon dioxide reduction targets. This Mixed Integer Linear Programming model was developed with the main objective of minimising the total cost of electricity generation, taking into consideration energy demand, reserve margin, electricity generation, peak and base generation, resource availability, and CO₂ emission. Data for the year 2013 were forecasted until 2025 to illustrate the analysis for this study, and are represented via four scenarios. This optimal model is capable of balancing types of fuel and switching coal plants to natural gas power plants. It also enhances the use of renewable energy (RE) to meet CO₂ emission targets. The model is further integrated with several other considerations related to energy systems, such as suitability of power plants as peak or base plants, RE resource availability, intermittency of solar power, losses during transmission, fuel selection for biomass, decision to retrofit existing coal power plant to NG power plant, and construction lead time of power plants. The results for this study determined that the optimal scenario is Scenario 3 (CS3). This research proves that Iskandar Malaysia can reduce CO₂ emission by 2025 via utilisation of RE. This model is generic and can be applied to any case study, which would be useful for assisting government policy-making.