Systems of innovations as a conceptual framework for studying the emergence of national renewable energy industries
| DOI | https://doi.org/10.1108/20425945201000020 |
| Pages | 309-334 |
| Date | 01 November 2010 |
| Published date | 01 November 2010 |
| Author | Yasser M. Al‐Saleh |
| Subject Matter | Public policy & environmental management |
World Journal of Science, Technology and Sustainable Development, Vol. 7, No. 4, 2010
Yasser M. Al–Saleh1
Masdar Institute of Science and Technology, UAE
Abstract: This conceptual paper articulates an analytical framework, which collec-
tively borrows from the concepts of Sectoral, National and Technological Innovation
Systems, for examining the prospects for the emergence of renewable energy indus-
tries in a given country. In order to examine the dynamics within the national
energy system under consideration, a list of system functions has also been compiled
from the literature. It is believed that the adoption of such a functions approach has
the potential to enhance our understanding of the process of, and drivers behind,
the emergence and transformation of energy innovation systems. Towards the end
of this paper, other theoretical concepts are acknowledged as also relevant for inves-
tigating the potential establishment of renewable energy industries. While ever y
theoretical approach has its strengths and weaknesses, an effort has been made in
this paper to justify the adoption of a suitable framework that is based on the
systems of innovation approach.
Keywords: innovation systems; functional analysis; sustainable innovation; renewable
energy policy
Copyright © 2010 WASD
The process of changing from fossil fuel-
based energy systems to more sustainable
ones can be seen as a long-term process of
technological change, the analysis of which
is the prime focus of innovation studies.
When observing the policy-making front
however, it appears that innovation and
sustainability issues have, until quite re-
cently, usually been addressed through sep-
arate policy regimes that are based on
distinct rationales for policy intervention.
Among the notable scholarly efforts to ex-
plicitly bring these two regimes closer was
a report by Foxon (2003). This report,
commissioned by the Carbon Trust, aimed
to analyse drivers and barriers to low-car-
bon innovation, and the broad implications
of this for public policy support in the
United Kingdom (UK). The author subse-
quently became the co-ordinator and lead
researcher for a project entitled ‘Policy
Drivers and Barriers for Sustainable Inno-
vation’ under the ESRC Sustainable Tech-
nology Programme (2004-2006). Another
1Masdar Institute of Science and Technology, P.O. Box 54224, Abu Dhabi, United Arab Emirates
Phone: +971 28109198, Email: yalsaleh@masdar.ac.ae
309
related major research activity was under-
taken as part of a Dutch programme enti-
tled ‘Knowledge Creation for Sustainable
Innovation’, which focused more on the
human and organisational dimensions of
the innovation process ( Jorna, 2006).
Among the findings of the UK-ESRC pro-
gramme was a recognition of the need to:
(1) stimulate the development of a sustain-
able innovation policy regime, through
bringing together innovation and environ-
mental policy regimes; and (2) apply sys-
tems thinking to promote a transition to
sustainability. Moreover, the programme
stressed the need for further theoretical de-
velopment and more empirical work
through conducting a wider range of case
study analyses (Foxon and Pearson, 2008).
In this regard, this paper aims to address
these needs as it articulates and justifies a
system of innovation (SI) – based theoreti-
cal framework for studying the prospects
for establishing national renewable energy
industries, its ultimate premise being the
provision of insights in terms of policy-
making implications for promoting sus-
tainable innovation within such countries.
To begin with, one needs to highlight
the importance of adopting theoretical (i.e.
conceptual) frameworks for analysing and
making sense of the findings of empirical
research endeavours. Hamel et al. (1993)
and Yin (1981) commented that the re-
liance on theoretical concepts in order to
guide the design of academic research is
one of the most important elements for
the successful completion of such research.
Robson (2002) further explained that con-
ceptual frameworks are important in help-
ing us determine which features and
relationships are likely to be of significance,
and consequently, which data need to be
collected and analysed. Since there have
only been a limited number of studies
about sustainable energy which have drawn
upon the theoretical concepts that have re-
cently been articulated within the realm of
innovation studies (Foxon et al., 2005;
Foxon and Pearson, 2008), it was decided
to base this paper on the dominant theo-
retical concepts relating to the systems of
innovation (SI). In essence, adopting an SI
perspective allows a transition of the ra-
tionale for policy intervention from the
typically limited approach of ‘market fail-
ures’ to a more appropriate ‘systemic fail-
ures’ one.
Since the focus of this paper is on renew-
able energy industries, the concept of Sec-
toral Innovation Systems (SIS) may appear
as a relevant and appealing framework.
This concept followed – to some extent –
the innovation system approach which was
articulated initially at the national level
(i.e. NIS) in the mid-1980s by Freeman
(1987) and Lundvall (1988), who were
then followed by others (e.g. Edquist,
1997; Nelson, 1993; OECD, 1997; Patel
and Pavitt, 1994). Early NIS scholars how-
ever, including Freeman and Lundvall
themselves, admitted that the idea behind
NIS actually goes back to the notion of
‘The National System of Political Econ-
omy’ that was proposed by the famous
German economist Friedrich List (1789–
1846). The NIS concept is essentially still
emerging and its definition varies consid-
erably, depending on the characteristics of
the system being considered. Figure 1
shows a range of the most cited NIS defi-
nitions that have been proposed within the
innovation literature.
310 Y. M. Al–Saleh
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