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The Impact of the Regulatory Reform Process on R&D Investment of European Electricity Utilities

  • Schmitt, Stephan
  • Kucsera, Denes
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    The aim of this paper is to give deeper insights into the impact of regulatory reforms and privatization on R&D spending of electricity utilities. Building on a panel data set including the biggest European utilities from eight EU-countries over a period from 1985 until 2010, we find a strong negative influence of privatization and also a negative overall impact of regulation on R&D investment. Nearing competition has a dampening effect on R&D spending, but once the market and regulatory framework conditions have been established, higher levels of competition positively influence R&D. Our results further indicate that the relation between competition and innovative investment can be described as inverted U-shaped. Finally, we could not find any evidence that (ownership) unbundling and incentive regulation affect R&D expenditures of the utilities.

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    File URL: http://econstor.eu/bitstream/10419/80035/1/VfS_2013_pid_343.pdf
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    Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order with number 80035.

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    Date of creation: 2013
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    Handle: RePEc:zbw:vfsc13:80035
    Contact details of provider: Web page: http://www.socialpolitik.org/Email:


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