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

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  • Jamasb, T.
  • Pollitt, M.G.

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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Bibliographic 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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Keywords: Electricity; patent; innovation; technology; liberalisation;

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  8. 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.
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  10. 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.
  11. Margolis, Robert M. & Kammen, Daniel M., 1999. "Evidence of under-investment in energy R&D in the United States and the impact of Federal policy," Energy Policy, Elsevier, vol. 27(10), pages 575-584, October.
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  13. Jamasb, T. & Pollitt, M., 2005. "Deregulation and R&D in Network Industries: The Case of the Electricity Industry," Cambridge Working Papers in Economics 0533, Faculty of Economics, University of Cambridge.
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Cited by:
  1. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09hc033ieaj is not listed on IDEAS
  2. Nesta, Lionel & Vona, Francesco & Nicolli, Francesco, 2014. "Environmental policies, competition and innovation in renewable energy," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 396-411.
  3. Bruno Amable & Ivan Ledezma & Stéphane Robin, 2014. "Product market regulation, innovation and productivity," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00973947, HAL.
  4. Bruno Amable & Ivan Ledezma & Stéphane Robin, 2014. "Product market regulation, innovation and productivity," Documents de travail du Centre d'Economie de la Sorbonne 14025, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  5. Hannon, Matthew J. & Foxon, Timothy J. & Gale, William F., 2013. "The co-evolutionary relationship between Energy Service Companies and the UK energy system: Implications for a low-carbon transition," Energy Policy, Elsevier, vol. 61(C), pages 1031-1045.
  6. Evens Salies & Lionel Nesta, 2010. "Libéralisation et dépôts de brevets verts des utilités électriques en Europe," Documents de Travail de l'OFCE 2010-21, Observatoire Francais des Conjonctures Economiques (OFCE).
  7. Francesco Nicolli & Francesco Vona & Lionel Nesta, 2012. "Determinants of Renewable Energy Innovation: Environmental Policies vs. Market Regulation," Working Papers 201204, University of Ferrara, Department of Economics.
  8. Evens Salies, 2009. "A test of the Schumpeterian hypothesis in a panel Of European electric utilities," Documents de Travail de l'OFCE 2009-19, Observatoire Francais des Conjonctures Economiques (OFCE).
  9. Ledezma, Ivan, 2013. "Defensive strategies in quality ladders," Journal of Economic Dynamics and Control, Elsevier, vol. 37(1), pages 176-194.
  10. Nelson, Andrew & Earle, Andrew & Howard-Grenville, Jennifer & Haack, Julie & Young, Doug, 2014. "Do innovation measures actually measure innovation? Obliteration, symbolic adoption, and other finicky challenges in tracking innovation diffusion," Research Policy, Elsevier, vol. 43(6), pages 927-940.
  11. Cátia Felisberto, 2013. "Liberalisation, competition and innovation in the postal sector," Empirical Economics, Springer, vol. 44(3), pages 1407-1434, June.
  12. Tooraj Jamasb & Rabindra Nepal, 2014. "Issues and Options in the Economic Regulation of European Network Security," Discussion Papers Series 505, School of Economics, University of Queensland, Australia.

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