Electricity Sector Liberalisation and Innovation: An Analysis of the UK Patenting Activities
AbstractLiberalisation 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 InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0902.
Date of creation: Jan 2009
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Electricity; patent; innovation; technology; liberalisation;
Other versions of this item:
- Jamasb, Tooraj & Pollitt, Michael G., 2011. "Electricity sector liberalisation and innovation: An analysis of the UK's patenting activities," Research Policy, Elsevier, vol. 40(2), pages 309-324, March.
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - 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)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-02-28 (All new papers)
- NEP-ENE-2009-02-28 (Energy Economics)
- NEP-INO-2009-02-28 (Innovation)
- NEP-IPR-2009-02-28 (Intellectual Property Rights)
- NEP-TID-2009-02-28 (Technology & Industrial Dynamics)
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