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Electricity Sector Liberalisation and Innovation: An Analysis of the UK Patenting Activities

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Author Info
Jamasb, T.
Pollitt, M.G.

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Abstract

Liberalisation has had a marked effect on innovative activities in the electricity industry. R&D and patenting activities are generally regarded respectively as innovative inputs to and outputs from technological progress. Electricity reforms have resulted in a reduction in R&D spending in the sector. This paper examines the effect of reforms on patenting activity in the UK electricity sector. The results indicate that electricity related patents in non-nuclear and renewable technologies have increased in the post-liberalisation period. We attribute this trend to increased commercialisation of the sector. While this development is positive, we argue that a lasting decline in R&D will in the longer run reduce technological progress in the sector. In order to maintain the pace of innovation, we discuss the need for a framework for innovation systems that is commensurate with the incentive mechanisms of a liberalised sector.

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File URL: http://www.econ.cam.ac.uk/dae/repec/cam/pdf/cwpe0902.pdf
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Publisher Info
Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0902.

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Date of creation: Jan 2009
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Handle: RePEc:cam:camdae:0902

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Related research
Keywords: Electricity; patent; innovation; technology; liberalisation;

Find related papers by JEL classification:
L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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  1. Foxon, T. J. & Gross, R. & Chase, A. & Howes, J. & Arnall, A. & Anderson, D., 2005. "UK innovation systems for new and renewable energy technologies: drivers, barriers and systems failures," Energy Policy, Elsevier, vol. 33(16), pages 2123-2137, November. [Downloadable!] (restricted)
  2. Basberg, Bjorn L., 1987. "Patents and the measurement of technological change: A survey of the literature," Research Policy, Elsevier, vol. 16(2-4), pages 131-141, August. [Downloadable!] (restricted)
  3. Lanjouw, Jean Olson & Mody, Ashoka, 1996. "Innovation and the international diffusion of environmentally responsive technology," Research Policy, Elsevier, vol. 25(4), pages 549-571, June. [Downloadable!] (restricted)
  4. Markard, Jochen & Truffer, Bernhard, 2006. "Innovation processes in large technical systems: Market liberalization as a driver for radical change?," Research Policy, Elsevier, vol. 35(5), pages 609-625, June. [Downloadable!] (restricted)
  5. Sioshansi, Fereidoon P., 2001. "Competition in Liberalized European Electricity Markets," The Electricity Journal, Elsevier, vol. 14(2), pages 73-83, March. [Downloadable!] (restricted)
  6. Narin, Francis & Hamilton, Kimberly S. & Olivastro, Dominic, 1997. "The increasing linkage between U.S. technology and public science," Research Policy, Elsevier, vol. 26(3), pages 317-330, October. [Downloadable!] (restricted)
  7. Jamasb, Tooraj & Nuttall, William J. & Pollitt, Michael, 2008. "The case for a new energy research, development and promotion policy for the UK," Energy Policy, Elsevier, vol. 36(12), pages 4610-4614, December. [Downloadable!] (restricted)
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