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The technological system of production and innovation: The case of photovoltaic technology in China

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  • Shubbak, Mahmood H.

Abstract

This research paper studies the Chinese technological system of production and innovation in the field of photovoltaics (PV). It contributes to a better understanding of the emergence and development of the system by utilizing three levels of analysis: the institutional framework of the system, the market dynamics of production and deployment, and the composition of innovation-related activities. The analysis demonstrates the interrelated roles of transnational factors, local government policies, and research and development (R&D) activities undertaken by the main actors in shaping the system dynamics. Tracking the relative position of China in the global PV manufacturing, installation and technological development, the analysis shows a gap between the growth of China’s market share and its modest share of transnational patent applications. This suggests a puzzle, which the paper attempts to answer by inspecting the individual companies in the system against four aspects. First, the dynamic development of their size and performance. Second, the nature of their international involvement through foreign direct investment and mergers and acquisition deals. Third, their technological specialization within the PV value chain over time. Fourth, the spatial scope of their patenting protection endeavours. The analysis recognises four periods of system development driven jointly by market dynamics and government plans. Behind the continuous growth of the system, there were different driving and moderating factors in each period.

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  • Shubbak, Mahmood H., 2019. "The technological system of production and innovation: The case of photovoltaic technology in China," Research Policy, Elsevier, vol. 48(4), pages 993-1015.
    • Handle: RePEc:eee:respol:v:48:y:2019:i:4:p:993-1015
    DOI: 10.1016/j.respol.2018.10.003
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    2. Victoria Kihlström & Jörgen Elbe, 2021. "Constructing Markets for Solar Energy—A Review of Literature about Market Barriers and Government Responses," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    3. George Yunxiong Li & Simona Iammarino, 2024. "Critical Raw Materials and Renewable Energy Transition: The Role of Domestic Supply," Papers in Evolutionary Economic Geography (PEEG) 2403, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2024.
    4. Caravella, Serenella & Crespi, Francesco & Cucignatto, Giacomo & Guarascio, Dario, 2023. "Technological Sovereignty and Strategic Dependencies: The case of the Photovoltaic Supply Chain," GLO Discussion Paper Series 1330, Global Labor Organization (GLO).
    5. Che, Xiao-Jing & Zhou, P. & Chai, Kah-Hin, 2022. "Regional policy effect on photovoltaic (PV) technology innovation: Findings from 260 cities in China," Energy Policy, Elsevier, vol. 162(C).
    6. Cristina Prieto & Sonia Fereres & Luisa F. Cabeza, 2020. "The Role of Innovation in Industry Product Deployment: Developing Thermal Energy Storage for Concentrated Solar Power," Energies, MDPI, vol. 13(11), pages 1-19, June.
    7. Xin-gang, Zhao & Zhen, Wang, 2019. "Technology, cost, economic performance of distributed photovoltaic industry in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 110(C), pages 53-64.
    8. Mohammad Esmailzadeh & Siamak Noori & Alireza Aliahmadi & Hamidreza Nouralizadeh & Marcel Bogers, 2020. "A Functional Analysis of Technological Innovation Systems in Developing Countries: An Evaluation of Iran’s Photovoltaic Innovation System," Sustainability, MDPI, vol. 12(5), pages 1-20, March.
    9. Xu, Xiaofeng & Cui, Xiaodan & Chen, Xiangyu & Zhou, Yichen, 2022. "Impact of government subsidies on the innovation performance of the photovoltaic industry: Based on the moderating effect of carbon trading prices," Energy Policy, Elsevier, vol. 170(C).
    10. Maria A. Franco & Stefan N. Groesser, 2021. "A Systematic Literature Review of the Solar Photovoltaic Value Chain for a Circular Economy," Sustainability, MDPI, vol. 13(17), pages 1-35, August.
    11. Costa, Vinicius B.F. & Capaz, Rafael S. & Silva, Patrícia F. & Doyle, Gabriel & Aquila, Giancarlo & Coelho, Éden O. & de Lorenci, Eliane & Pereira, Lígia C. & Maciel, Letícia B. & Balestrassi, Pedro P, 2022. "Socioeconomic and environmental consequences of a new law for regulating distributed generation in Brazil: A holistic assessment," Energy Policy, Elsevier, vol. 169(C).
    12. Shubbak, Mahmood H., 2019. "Advances in solar photovoltaics: Technology review and patent trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    13. Yuhang Wang & Jingbo Fan, 2023. "Technological Mediation of Photovoltaic System to Improve Rural Sustainability in the Background of Resettlement and Consolidation: Evidence from the Rural Community and Villages in China," Sustainability, MDPI, vol. 15(12), pages 1-20, June.
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    15. Tiantian Zhang & Ken’ichi Matsumoto & Kei Nakagawa, 2021. "The Relative Importance of Determinants of the Solar Photovoltaic Industry in China: Analyses by the Diamond Model and the Analytic Hierarchy Process," Energies, MDPI, vol. 14(20), pages 1-20, October.

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    More about this item

    Keywords

    Sectoral innovation system; Solar photovoltaics; Institutions; Crystalline-silicon market; Patent analysis; Environment;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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