Municipalities’ Policy on Innovation and Market Introduction in Sustainable Energy: A Focus on Local Young Technology Firms

Municipalities are increasingly involved in energy transition planning. There are, however, doubts about whether municipalities are an adequate organization and scale level for this. In this context, the article aims to picture developments of local young technology firms in bringing energy inventions to market, in particular, how municipalities have provided support to them. Such aim, in the context of energy transition, is new. Derived from study in Nordic countries and The Netherlands, two findings make a valuable contribution to literature. Firstly, a share of almost 40% of young technology firms fails in market introduction, and if reached the market, a 30% is rather late. Barriers stem from high risk-taking, late (no) collaboration, and limiting circumstances in metropolitan cities. Secondly, municipalities’ initiatives appear useful in filling young technology firms’ needs, but the initiatives are fragmented and miss priority. However, partnering in professional start-up organizations tends to improve the situation, indicating that the municipal level is promising in transitional change with regard to new technology. In contrast, driving energy transition through regional cluster building, includes different levels of functional interdependence, territorial scale, networking and governance, causing manifold complexity and uncertainty. Not all (large) municipalities seem able to act in a promising manner, however, much empirical research needs to be done.