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Renewable futures and industrial legacies: Wind and solar sectors in China, Germany, and the United States†

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  • Nahm, Jonas

Abstract

This article develops an explanation for patterns of industrial specialization in emerging high-technology industries through a comparative analysis of wind and solar sectors in China, Germany, and the United States. Although governments have held similar industrial policy goals in the support of renewable energy industries, firms in all three economies have established distinct innovative capabilities in response to the policies of the state. This article shows that firms utilize both legacy institutions and engage in relational learning in global networks to carve out distinct niches in emerging industries. Based on an original dataset of more than 200 firm-level interviews, the article suggests that the rise of global value chains has widened the space for national diversity in industrial specialization. Firms no longer have to establish the full range of skills required to bring an idea from lab to market, but can specialize and collaborate with others. In this context, firms respond to industrial policy by incrementally building on existing industrial capabilities and by relying on familiar public resources and institutions, even in emerging industries. These findings point to the role of industrial legacies in shaping firms' positions in global value chains and show that firms are active agents in maintaining distinct industrial specializations and domestic institutions under conditions of globalization.

Suggested Citation

  • Nahm, Jonas, 2017. "Renewable futures and industrial legacies: Wind and solar sectors in China, Germany, and the United States†," Business and Politics, Cambridge University Press, vol. 19(1), pages 68-106, March.
    • Handle: RePEc:cup:buspol:v:19:y:2017:i:01:p:68-106_00
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    Cited by:

    1. Watson, Anna, 2022. "Designing publicly funded organisations for accelerated low carbon innovation: A case study of the ETI, UK and ARPA-E, US," Energy Policy, Elsevier, vol. 168(C).
    2. Cunial, Santiago, 2024. "Policy legacies and energy transitions: Greening policies under sectoral reforms in Argentina and Chile," Energy Policy, Elsevier, vol. 188(C).
    3. Hughes, Llewelyn & Meckling, Jonas, 2017. "The politics of renewable energy trade: The US-China solar dispute," Energy Policy, Elsevier, vol. 105(C), pages 256-262.
    4. Florentina Paraschiv & Benedict Anderer & Rayan Ayari, 2024. "Gone with the Wind? An Assessment of Germany’s Onshore Wind Industry Amid Rising Chinese Competition," Sustainability, MDPI, vol. 16(24), pages 1-16, December.
    5. Apergi, Maria & Zimmermann, Eva & Weko, Silvia & Lilliestam, Johan, 2023. "Is renewable energy technology trade more or less conflictive than other trade?," Energy Policy, Elsevier, vol. 177(C).
    6. Meckling, Jonas & Nahm, Jonas, 2019. "The politics of technology bans: Industrial policy competition and green goals for the auto industry," Energy Policy, Elsevier, vol. 126(C), pages 470-479.
    7. Victoria Kihlström & Jörgen Elbe, 2021. "Constructing Markets for Solar Energy—A Review of Literature about Market Barriers and Government Responses," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    8. Leitch, Aletta & Haley, Brendan & Hastings-Simon, Sara, 2019. "Can the oil and gas sector enable geothermal technologies? Socio-technical opportunities and complementarity failures in Alberta, Canada," Energy Policy, Elsevier, vol. 125(C), pages 384-395.
    9. Weko, Silvia & Goldthau, Andreas, 2022. "Bridging the low-carbon technology gap? Assessing energy initiatives for the Global South," Energy Policy, Elsevier, vol. 169(C).
    10. Behuria, Pritish, 2020. "The politics of late late development in renewable energy sectors: Dependency and contradictory tensions in India’s National Solar Mission," World Development, Elsevier, vol. 126(C).
    11. Garsous, Grégoire & Worack, Stephan, 2022. "Technological expertise as a driver of environmental technology diffusion through trade: Evidence from the wind turbine manufacturing industry," Energy Policy, Elsevier, vol. 162(C).
    12. Summerfield-Ryan, Oliver & Park, Susan, 2023. "The power of wind: The global wind energy industry's successes and failures," Ecological Economics, Elsevier, vol. 210(C).

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