Do policy mix characteristics matter for low-carbon innovation? A survey-based exploration of renewable power generation technologies in Germany

Rogge, Karoline and Schleich, Joachim (2018) Do policy mix characteristics matter for low-carbon innovation? A survey-based exploration of renewable power generation technologies in Germany. Research Policy, 47 (9). pp. 1639-1654. ISSN 0048-7333

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Abstract

Policy mixes may play a crucial role in redirecting and accelerating innovation towards low-carbon solutions, thus addressing a key societal challenge. Towards this end, some argue that the characteristics of such policy mixes matter greatly, yet with little empirical evidence backing up such claims. In this paper we explore this link between policy mix characteristics and low-carbon innovation, using the research case of the transition of the German electricity system towards renewable energy. Our empirical insights are based on an innovation survey administered to German manufacturers of renewable power generation technologies which builds on the Community Innovation Survey. For our purposes we adjusted the survey to better capture companies’ perceptions of policy mixes. Employing a bivariate Tobit model we find evidence that companies’ perceptions regarding the consistency and credibility of a policy mix are positively associated with their innovation expenditures for renewable energies, and this positive link intensifies when considering the mutual interdependence of these policy mix characteristics. In contrast, neither the comprehensiveness of the instrument mix nor the coherence of policy processes were found to be related to innovation expenditures. Overall, these findings suggest that future research on low-carbon and eco-innovation should pay greater attention to the characteristics of policy mixes, rather than focusing on policy instruments only. Finally, our findings indicate a need to consider how policy may be measured in innovation surveys to generate better informed policy advice regarding the greening of innovation.

Item Type: Article
Keywords: policy mix, credibility, consistency, coherence, comprehensiveness, eco-innovation, renewable energy, sustainability transition, decarbonization
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences > GE170 Environmental policy
H Social Sciences > HD Industries. Land use. Labour > HD9000 Special industries and trades > HD9720 Manufacturing industries
T Technology > T Technology (General) > T0173.2 Technological change
Depositing User: Karoline Rogge
Date Deposited: 01 Oct 2018 12:02
Last Modified: 02 Jul 2019 13:15
URI: http://sro.sussex.ac.uk/id/eprint/79119

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Project NameSussex Project NumberFunderFunder Ref
Research Centre on Innovation and Energy DemandG1020RCUK-RESEARCH COUNCILS UKEP/K011790/1
Smart Energy Transition (SET)G1785Strategic Research Council at the Academy of Finland293405