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The Impacts of Market Liberalization on Innovation Processes in the Electricity Sector

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  • Jochen Markard
  • Bernhard Truffer
  • Dieter M. Imboden

Abstract

Market liberalization has triggered fundamental changes in the electricity sector with far-reaching economic, technical, organizational and ecological consequences. The paper examines how electricity market liberalization has influenced innovation processes at the level of electric utilities and in the electricity sector as a whole. The results are based on an empirical survey including two case studies, green power and fuel cells, in which utility innovation strategies were analysed. From the similarities in both cases and the aggregated effects of innovation strategies, we identify several indications for a general change of innovation processes in the sector: The innovation activity has increased, there is a greater variety of innovation projects, product innovations and organizational innovations have gained importance, innovation networks have become smaller and more specific, and the professionalism of innovation management is improving.

Suggested Citation

  • Jochen Markard & Bernhard Truffer & Dieter M. Imboden, 2004. "The Impacts of Market Liberalization on Innovation Processes in the Electricity Sector," Energy & Environment, , vol. 15(2), pages 201-214, March.
    • Handle: RePEc:sae:engenv:v:15:y:2004:i:2:p:201-214
    DOI: 10.1260/095830504323153405
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Evens Salies, 2010. "A Test of the Schumpeterian Hypothesis in a Panel of European Electric Utilities," Chapters, in: Jean-Luc Gaffard & Evens Salies (ed.), Innovation, Economic Growth and the Firm, chapter 6, Edward Elgar Publishing.
    2. Erlinghagen, Sabine & Markard, Jochen, 2012. "Smart grids and the transformation of the electricity sector: ICT firms as potential catalysts for sectoral change," Energy Policy, Elsevier, vol. 51(C), pages 895-906.
    3. Karger, Cornelia R. & Bongartz, Richard, 2008. "External determinants for the adoption of stationary fuel cells--Infrastructure and policy issues," Energy Policy, Elsevier, vol. 36(2), pages 798-810, February.
    4. Enrique Loredo & Nuria Lopez-Mielgo & Gustavo Pineiro-Villaverde & María Teresa García-Álvarez, 2019. "Utilities: Innovation and Sustainability," Sustainability, MDPI, vol. 11(4), pages 1-13, February.
    5. Jamasb, Tooraj & Pollitt, Michael, 2008. "Liberalisation and R&D in network industries: The case of the electricity industry," Research Policy, Elsevier, vol. 37(6-7), pages 995-1008, July.
    6. Sköld, David & Fornstedt, Helena & Lindahl, Marcus, 2018. "Dilution of innovation utility, reinforcing the reluctance towards the new: An upstream supplier perspective on a fragmented electricity industry," Energy Policy, Elsevier, vol. 116(C), pages 220-231.
    7. María Teresa Costa-Campi & Jose García-Quevedo, 2017. "Why do manufacturing industries invest in energy R&D?," Working Papers 2017/20, Institut d'Economia de Barcelona (IEB).

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