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Deregulation and R&D in Network Industries: The Case of the Electricity Industry Author info | Abstract | Publisher info | Download info | Related research | Statistics Jamasb, T.
Pollitt, M.
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Electricity reform has coincided with a significant decline in energy R&D activities. Technical progress is crucial for tackling many energy and environmental issues as well as for long-term efficiency improvement. This paper reviews the industrial organisation literature on innovation to explore the causes of this decline, and shows that it was predicted by the pre-reform literature. More recent evidence endorses this conclusion. At the same time, R&D productivity and innovative output appear to have improved in both electric utilities and equipment suppliers, in line with general improvements in the operating efficiency of the sector. Despite this, a lasting decline in basic R&D and innovation input into basic research may negatively affect development of radical technological innovation in the long run. There is a need for reorientation of energy technology policies and spending toward more basic research, engaging more firms in R&D, encouraging collaborative research, and exploring public private partnerships.
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Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number
0533.
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Length: 36
Date of creation: Aug 2005Date of revision:
Handle: RePEc:cam:camdae:0533Note: EPRGContact details of provider: Web page: http://www.econ.cam.ac.uk/index.htm
For technical questions regarding this item, or to correct its listing, contact: (Howard Cobb).
Keywords: innovation ; R&D expenditure ; electricity reform ; regulation ; ownership ; Other versions of this item:
Find related papers by JEL classification: L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy
This paper has been announced in the following NEP Reports :
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