IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v104y2016icp102-121.html
   My bibliography  Save this article

Technology life-cycles in the energy sector — Technological characteristics and the role of deployment for innovation

Author

Listed:
  • Huenteler, Joern
  • Schmidt, Tobias S.
  • Ossenbrink, Jan
  • Hoffmann, Volker H.

Abstract

Understanding the long-term patterns of innovation in energy technologies is crucial for technology forecasting and public policy planning in the context of climate change. This paper analyzes which of two common models of innovation over the technology life-cycle – the product-process innovation shift observed for mass-produced goods or the system-component shift observed for complex products and systems – best describes the pattern of innovation in energy technologies. To this end, we develop a novel, patent-based methodology to study how the focus of innovation changes over the course of the technology life-cycle. Specifically, we analyze patent-citation networks in solar PV and wind power in the period 1963–2009. The results suggest that solar PV technology followed the life-cycle pattern of mass-produced goods: early product innovations were followed by a surge of process innovations in solar cell production. Wind turbine technology, by contrast, more closely resembled the life-cycle of complex products and systems: the focus of innovative activity shifted over time through different parts of the product, rather than from product to process innovations. These findings point to very different innovation and learning processes in energy technologies and the need to tailor technology policy to technological characteristics. They also help conceptualize previously inconclusive evidence about the impact of technology policies in the past.

Suggested Citation

  • Huenteler, Joern & Schmidt, Tobias S. & Ossenbrink, Jan & Hoffmann, Volker H., 2016. "Technology life-cycles in the energy sector — Technological characteristics and the role of deployment for innovation," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 102-121.
  • Handle: RePEc:eee:tefoso:v:104:y:2016:i:c:p:102-121
    DOI: 10.1016/j.techfore.2015.09.022
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S004016251500284X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.techfore.2015.09.022?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hobday, Mike, 1998. "Product complexity, innovation and industrial organisation," Research Policy, Elsevier, vol. 26(6), pages 689-710, February.
    2. Prencipe, Andrea, 2000. "Breadth and depth of technological capabilities in CoPS: the case of the aircraft engine control system," Research Policy, Elsevier, vol. 29(7-8), pages 895-911, August.
    3. Roberto Fontana & Alessandro Nuvolari & Bart Verspagen, 2009. "Mapping technological trajectories as patent citation networks. An application to data communication standards," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(4), pages 311-336.
    4. Andrew Davies, 1997. "The Life Cycle of a Complex Product System," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 1(03), pages 229-256.
    5. Antoine Dechezleprêtre & Matthieu Glachant, 2014. "Does Foreign Environmental Policy Influence Domestic Innovation? Evidence from the Wind Industry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(3), pages 391-413, July.
    6. Epicoco, Marianna & Oltra, Vanessa & Maïder Saint, Jean, 2014. "Knowledge dynamics and sources of eco-innovation: Mapping the Green Chemistry community," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 388-402.
    7. repec:fth:harver:1473 is not listed on IDEAS
    8. Epicoco, Marianna, 2013. "Knowledge patterns and sources of leadership: Mapping the semiconductor miniaturization trajectory," Research Policy, Elsevier, vol. 42(1), pages 180-195.
    9. Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December.
    10. Arianna Martinelli & Önder Nomaler, 2014. "Measuring knowledge persistence: a genetic approach to patent citation networks," Journal of Evolutionary Economics, Springer, vol. 24(3), pages 623-652, July.
    11. Garud, Raghu & Karnoe, Peter, 2003. "Bricolage versus breakthrough: distributed and embedded agency in technology entrepreneurship," Research Policy, Elsevier, vol. 32(2), pages 277-300, February.
    12. Lewis, Joanna I. & Wiser, Ryan H., 2007. "Fostering a renewable energy technology industry: An international comparison of wind industry policy support mechanisms," Energy Policy, Elsevier, vol. 35(3), pages 1844-1857, March.
    13. Wilson, Charlie, 2012. "Up-scaling, formative phases, and learning in the historical diffusion of energy technologies," Energy Policy, Elsevier, vol. 50(C), pages 81-94.
    14. Fleming, Lee & Sorenson, Olav, 2001. "Technology as a complex adaptive system: evidence from patent data," Research Policy, Elsevier, vol. 30(7), pages 1019-1039, August.
    15. Pizer, William A. & Popp, David, 2008. "Endogenizing technological change: Matching empirical evidence to modeling needs," Energy Economics, Elsevier, vol. 30(6), pages 2754-2770, November.
    16. Nemet, Gregory F. & Johnson, Evan, 2012. "Do important inventions benefit from knowledge originating in other technological domains?," Research Policy, Elsevier, vol. 41(1), pages 190-200.
    17. Anadón, Laura Díaz, 2012. "Missions-oriented RD&D institutions in energy between 2000 and 2010: A comparative analysis of China, the United Kingdom, and the United States," Research Policy, Elsevier, vol. 41(10), pages 1742-1756.
    18. Murmann, Johann Peter & Frenken, Koen, 2006. "Toward a systematic framework for research on dominant designs, technological innovations, and industrial change," Research Policy, Elsevier, vol. 35(7), pages 925-952, September.
    19. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    20. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    21. Peters, Michael & Schneider, Malte & Griesshaber, Tobias & Hoffmann, Volker H., 2012. "The impact of technology-push and demand-pull policies on technical change – Does the locus of policies matter?," Research Policy, Elsevier, vol. 41(8), pages 1296-1308.
    22. Harhoff, Dietmar & Scherer, Frederic M. & Vopel, Katrin, 2003. "Citations, family size, opposition and the value of patent rights," Research Policy, Elsevier, vol. 32(8), pages 1343-1363, September.
    23. Martinelli, Arianna, 2012. "An emerging paradigm or just another trajectory? Understanding the nature of technological changes using engineering heuristics in the telecommunications switching industry," Research Policy, Elsevier, vol. 41(2), pages 414-429.
    24. Nicolas van Zeebroeck, 2011. "The puzzle of patent value indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(1), pages 33-62.
    25. Candelise, Chiara & Winskel, Mark & Gross, Robert J.K., 2013. "The dynamics of solar PV costs and prices as a challenge for technology forecasting," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 96-107.
    26. Routley, Michèle & Phaal, Robert & Probert, David, 2013. "Exploring industry dynamics and interactions," Technological Forecasting and Social Change, Elsevier, vol. 80(6), pages 1147-1161.
    27. Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-653, September.
    28. Kahouli-Brahmi, Sondes, 2008. "Technological learning in energy-environment-economy modelling: A survey," Energy Policy, Elsevier, vol. 36(1), pages 138-162, January.
    29. Henderson, Rebecca, 1995. "Of life cycles real and imaginary: The unexpectedly long old age of optical lithography," Research Policy, Elsevier, vol. 24(4), pages 631-643, July.
    30. Bart Verspagen, 2007. "Mapping Technological Trajectories As Patent Citation Networks: A Study On The History Of Fuel Cell Research," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 93-115.
    31. Prabhakaran, Thara & Lathabai, Hiran H. & Changat, Manoj, 2015. "Detection of paradigm shifts and emerging fields using scientific network: A case study of Information Technology for Engineering," Technological Forecasting and Social Change, Elsevier, vol. 91(C), pages 124-145.
    32. Tian Tang & David Popp, 2014. "The Learning Process and Technological Change in Wind Power: Evidence from China's CDM Wind Projects," CESifo Working Paper Series 4705, CESifo.
    33. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343, National Bureau of Economic Research, Inc.
    34. Hoppmann, Joern & Peters, Michael & Schneider, Malte & Hoffmann, Volker H., 2013. "The two faces of market support—How deployment policies affect technological exploration and exploitation in the solar photovoltaic industry," Research Policy, Elsevier, vol. 42(4), pages 989-1003.
    35. Per Dannemand Andersen, 2004. "Sources of experience – theoretical considerations and empirical observations from Danish wind energy technology," International Journal of Energy Technology and Policy, Inderscience Enterprises Ltd, vol. 2(1/2), pages 33-51.
    36. Nile W. Hatch & David C. Mowery, 1998. "Process Innovation and Learning by Doing in Semiconductor Manufacturing," Management Science, INFORMS, vol. 44(11-Part-1), pages 1461-1477, November.
    37. Nightingale, P., 2000. "The product-process-organisation relationship in complex development projects," Research Policy, Elsevier, vol. 29(7-8), pages 913-930, August.
    38. Bekkers, Rudi & Martinelli, Arianna, 2012. "Knowledge positions in high-tech markets: Trajectories, standards, strategies and true innovators," Technological Forecasting and Social Change, Elsevier, vol. 79(7), pages 1192-1216.
    39. Ho, Jonathan C. & Saw, Ewe-Chai & Lu, Louis Y.Y. & Liu, John S., 2014. "Technological barriers and research trends in fuel cell technologies: A citation network analysis," Technological Forecasting and Social Change, Elsevier, vol. 82(C), pages 66-79.
    40. Lori Rosenkopf & Atul Nerkar, 2001. "Beyond local search: boundary‐spanning, exploration, and impact in the optical disk industry," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 287-306, April.
    41. Kamp, Linda M. & Smits, Ruud E. H. M. & Andriesse, Cornelis D., 2004. "Notions on learning applied to wind turbine development in the Netherlands and Denmark," Energy Policy, Elsevier, vol. 32(14), pages 1625-1637, September.
    42. Marianna Epicoco, 2013. "Knowledge patterns and sources of leadership: Mapping the semiconductor miniaturization trajectory," Post-Print hal-03381305, HAL.
    43. Winskel, Mark & Markusson, Nils & Jeffrey, Henry & Candelise, Chiara & Dutton, Geoff & Howarth, Paul & Jablonski, Sophie & Kalyvas, Christos & Ward, David, 2014. "Learning pathways for energy supply technologies: Bridging between innovation studies and learning rates," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 96-114.
    44. Nemet, Gregory F., 2006. "Beyond the learning curve: factors influencing cost reductions in photovoltaics," Energy Policy, Elsevier, vol. 34(17), pages 3218-3232, November.
    45. Funk, Jeffery, 2009. "Components, systems and discontinuities: The case of magnetic recording and playback equipment," Research Policy, Elsevier, vol. 38(7), pages 1192-1202, September.
    46. Tian Tang & David Popp, 2014. "The Learning Process and Technological Change in Wind Power: Evidence from China's CDM Wind Projects," NBER Working Papers 19921, National Bureau of Economic Research, Inc.
    47. Mina, A. & Ramlogan, R. & Tampubolon, G. & Metcalfe, J.S., 2007. "Mapping evolutionary trajectories: Applications to the growth and transformation of medical knowledge," Research Policy, Elsevier, vol. 36(5), pages 789-806, June.
    48. Nemet, Gregory F., 2009. "Demand-pull, technology-push, and government-led incentives for non-incremental technical change," Research Policy, Elsevier, vol. 38(5), pages 700-709, June.
    49. Miller, Roger, et al, 1995. "Innovation in Complex Systems Industries: The Case of Flight Simulation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 4(2), pages 363-400.
    50. Thanh-Dong Pham & Byeong-Kyu Lee & Chi Hyeon Lee & Minh Viet Nguyen, 2015. "Emission Control Technology," Chapters, in: Farhad Nejadkoorki (ed.), Current Air Quality Issues, IntechOpen.
    51. Epicoco, Marianna & Oltra, Vanessa & Maïder Saint, Jean, 2014. "Knowledge dynamics and sources of eco-innovation: Mapping the Green Chemistry community," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 388-402.
    52. Abernathy, William J. & Clark, Kim B., 1985. "Innovation: Mapping the winds of creative destruction," Research Policy, Elsevier, vol. 14(1), pages 3-22, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Huenteler, Joern & Ossenbrink, Jan & Schmidt, Tobias S. & Hoffmann, Volker H., 2016. "How a product’s design hierarchy shapes the evolution of technological knowledge—Evidence from patent-citation networks in wind power," Research Policy, Elsevier, vol. 45(6), pages 1195-1217.
    2. Gnekpe, Christian & Plantec, Quentin, 2023. "Regulatory push-pull and technological knowledge dynamics of circular economy innovation," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    3. Malhotra, Abhishek & Zhang, Huiting & Beuse, Martin & Schmidt, Tobias, 2021. "How do new use environments influence a technology's knowledge trajectory? A patent citation network analysis of lithium-ion battery technology," Research Policy, Elsevier, vol. 50(9).
    4. Martin Kalthaus, 2020. "Knowledge recombination along the technology life cycle," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 643-704, July.
    5. Flavia Filippin, 2021. "Do main paths reflect technological trajectories? Applying main path analysis to the semiconductor manufacturing industry," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(8), pages 6443-6477, August.
    6. Doblinger, Claudia & Surana, Kavita & Li, Deyu & Hultman, Nathan & Anadón, Laura Díaz, 2022. "How do global manufacturing shifts affect long-term clean energy innovation? A study of wind energy suppliers," Research Policy, Elsevier, vol. 51(7).
    7. Martin Ho & Henry CW Price & Tim S Evans & Eoin O'Sullivan, 2023. "Order in Innovation," Papers 2302.13076, arXiv.org.
    8. John S. Liu & Louis Y. Y. Lu & Mei Hsiu-Ching Ho, 2019. "A few notes on main path analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 119(1), pages 379-391, April.
    9. Malhotra, Abhishek & Schmidt, Tobias S. & Huenteler, Joern, 2019. "The role of inter-sectoral learning in knowledge development and diffusion: Case studies on three clean energy technologies," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 464-487.
    10. Battke, Benedikt & Schmidt, Tobias S. & Stollenwerk, Stephan & Hoffmann, Volker H., 2016. "Internal or external spillovers—Which kind of knowledge is more likely to flow within or across technologies," Research Policy, Elsevier, vol. 45(1), pages 27-41.
    11. Triulzi, Giorgio & Alstott, Jeff & Magee, Christopher L., 2020. "Estimating technology performance improvement rates by mining patent data," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    12. Epicoco, Marianna, 2013. "Knowledge patterns and sources of leadership: Mapping the semiconductor miniaturization trajectory," Research Policy, Elsevier, vol. 42(1), pages 180-195.
    13. Bossink, Bart, 2020. "Learning strategies in sustainable energy demonstration projects: What organizations learn from sustainable energy demonstrations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    14. Nemet, Gregory F., 2012. "Inter-technology knowledge spillovers for energy technologies," Energy Economics, Elsevier, vol. 34(5), pages 1259-1270.
    15. Junmo Kim & Juneseuk Shin, 2018. "Mapping extended technological trajectories: integration of main path, derivative paths, and technology junctures," Scientometrics, Springer;Akadémiai Kiadó, vol. 116(3), pages 1439-1459, September.
    16. Park, Inchae & Triulzi, Giorgio & Magee, Christopher L., 2022. "Tracing the emergence of new technology: A comparative analysis of five technological domains," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    17. Nemet, Gregory F. & Johnson, Evan, 2012. "Do important inventions benefit from knowledge originating in other technological domains?," Research Policy, Elsevier, vol. 41(1), pages 190-200.
    18. Alessandri, Enrico, 2023. "Identifying technological trajectories in the mining sector using patent citation networks," Resources Policy, Elsevier, vol. 80(C).
    19. Hoppmann, Joern & Wu, Geng & Johnson, Jillian, 2021. "The impact of demand-pull and technology-push policies on firms’ knowledge search," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    20. Gao, Xue & Rai, Varun, 2023. "Knowledge acquisition and innovation quality: The moderating role of geographical characteristics of technology," Technovation, Elsevier, vol. 125(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:104:y:2016:i:c:p:102-121. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.