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The impact of technology-push and demand-pull policies on technical change – Does the locus of policies matter?

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  • Peters, Michael
  • Schneider, Malte
  • Griesshaber, Tobias
  • Hoffmann, Volker H.
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    Abstract

    How to foster technical change is a highly relevant and intricate question in the arena of policymaking. Various studies have shown that technology-push and demand-pull policies induce innovation. However, there is a lack of work that distinguishes between the loci of policy support when assessing the policy–innovation relationship. We address this gap by shedding light on the question how the innovation effects of domestic and foreign demand-pull and technology-push policies differ. Using solar photovoltaic modules as a research case we conduct a panel analysis on 15 OECD countries over the period 1978 through 2005 with patent data. Three key findings emerged: First, our analyses find no evidence that domestic technology-push policies foster innovative output outside of national borders. Second, both domestic and foreign demand-pull policies trigger innovative output in a country. Third, we detect no indication that market growth induced by domestic demand-pull policies leads to more national innovative output than market growth induced by foreign demand-pull policies. Consequently, demand-pull policies create significant country-level innovation spillovers, which could disincentivize national policymakers to engage in domestic market creation. Based on these findings we discuss the need to establish supranational demand-pull policy schemes in order to address the spillover issue.

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    Bibliographic Info

    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 41 (2012)
    Issue (Month): 8 ()
    Pages: 1296-1308

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    Handle: RePEc:eee:respol:v:41:y:2012:i:8:p:1296-1308

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    Web page: http://www.elsevier.com/locate/respol

    Related research

    Keywords: Technology-push; Demand-pull; Innovation spillovers; Solar photovoltaics;

    References

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    Cited by:
    1. Antoine Dechezleprêtre & Matthieu Glachant, 2014. "Does Foreign Environmental Policy Influence Domestic Innovation? Evidence from the Wind Industry," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 58(3), pages 391-413, July.
    2. Corradini, Massimiliano & Costantini, Valeria & Mancinelli, Susanna & Mazzanti, Massimiliano, 2014. "Unveiling the dynamic relation between R&D and emission abatement," Ecological Economics, Elsevier, vol. 102(C), pages 48-59.
    3. Hoppmann, Joern & Peters, Michael & Schneider, Malte & Hoffmann, Volker H., 2013. "The two faces of market support—How deployment policies affect technological exploration and exploitation in the solar photovoltaic industry," Research Policy, Elsevier, vol. 42(4), pages 989-1003.
    4. Christoph Böhringer & Alexander Cuntz & Dietmar Harhoff & Emmanuel A. Otoo, 2014. "The Impacts of Feed-in Tariffs on Innovation: Empirical Evidence from Germany," Working Papers V-363-14, University of Oldenburg, Department of Economics, revised Jan 2014.
    5. Felix Groba & Barbara Breitschopf, 2013. "Impact of Renewable Energy Policy and Use on Innovation: A Literature Review," Discussion Papers of DIW Berlin 1318, DIW Berlin, German Institute for Economic Research.
    6. Glachant, Matthieu & Dussaux, Damien & Meniere, Yann & Dechezlepretre, Antoine, 2013. "Greening global value chains : innovation and the international diffusion of technologies and knowledge," Policy Research Working Paper Series 6467, The World Bank.
    7. Tilmann Rave, 2013. "Politikkoordination bei der Energiewende – dargestellt am Beispiel des Emissionshandelssystems und der Förderung erneuerbarer Energien," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(12), pages 23-36, 06.

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