The results from previous work mentioned above do not answer a very relevant, aspect of electricity market liberalization: the effect on renewable electricity innovation. Hypotheses CCGT (combined cycle gas turbine, a very efficient generator for electricity and heat) was invented for the use in planes. Larger versions became more and more efficient in generating electricity. Such cross-industry innovation or knowledge-spillover is more productive (in terms of sales from innovative products) and more prevalent if a market has lower entry barriers . The liberalization of the electricity sector opened up the possibility of entry. Lower entry barriers to the electricity market are therefore also likely to lower entry barriers for renewable electricity innovation. Electricity market liberalization is therefore likely to be associated with more entry in the renewable electricity innovation process. At the same time, Dooley (1998) states that in particular long term, environmentally preferred energy supply R&D is unlikely to be conducted by individual in competitive markets. R&D activity can be recognized as an innovative activity. This links R&D to the renewable electricity innovation process. The electricity market liberalization increased competition. Hence, electricity market liberalization is unlikely to be associated with more entry in the renewable electricity innovation process. The first hypothesis aims to test these conflicting theories: Hypothesis 1a: Electricity market liberalization is associated with more entry in the renewable electricity innovation process. Hypothesis 1b: Electricity market liberalization is associated with less in the renewable electricity innovation process. The association between electricity market liberalization and innovation can be further studied by looking at the development of the quantity and quality of innovative output. Innovative output is a measure of innovation, and therefore useful to study innovation. A three-step argumentation links electricity market liberalization to quality of innovative output. First, patents can be seen as a measure of innovative output. Patents vary enormously in their technological and economic importance, and the distribution of such is “values” extremely skewed. This makes it more important to analyze the value of patents, in order to make conclusions about innovation.
The results from previous work mentioned above do not answer a very relevant, aspect of electricity market liberalization: the effect on renewable electricity innovation. Hypotheses CCGT (combined cycle gas turbine, a very efficient generator for electricity and heat) was invented for the use in planes. Larger versions became more and more efficient in generating electricity. Such cross-industry innovation or knowledge-spillover is more productive (in terms of sales from innovative products) and more prevalent if a market has lower entry barriers . The liberalization of the electricity sector opened up the possibility of entry. Lower entry barriers to the electricity market are therefore also likely to lower entry barriers for renewable electricity innovation. Electricity market liberalization is therefore likely to be associated with more entry in the renewable electricity innovation process. At the same time, Dooley (1998) states that in particular long term, environmentally preferred energy supply R&D is unlikely to be conducted by individual in competitive markets. R&D activity can be recognized as an innovative activity. This links R&D to the renewable electricity innovation process. The electricity market liberalization increased competition. Hence, electricity market liberalization is unlikely to be associated with more entry in the renewable electricity innovation process. The first hypothesis aims to test these conflicting theories: Hypothesis 1a: Electricity market liberalization is associated with more entry in the renewable electricity innovation process. Hypothesis 1b: Electricity market liberalization is associated with less in the renewable electricity innovation process. The association between electricity market liberalization and innovation can be further studied by looking at the development of the quantity and quality of innovative output. Innovative output is a measure of innovation, and therefore useful to study innovation. A three-step argumentation links electricity market liberalization to quality of innovative output. First, patents can be seen as a measure of innovative output. Patents vary enormously in their technological and economic importance, and the distribution of such “values” is extremely skewed. This makes it more important to analyze the value of patents, in order to make conclusions about innovation.
BA_Thesis-364627_JanQuist.docx