Conditions for growth in renewable energy industries (RENEWGROWTH)

RenewGrowth analyses how the energy transition and increased global investments in renewable energy present opportunities for Norwegian firms. Several Norwegian firms have established themselves in offshore wind and solar energy, among others drawing on knowledge and resources from established industries. The challenge is to move beyond a nascent stage and achieve growth. Given that home markets for these technologies are weakly developed, growth hinges on the conditions for industry development aimed at gaining access to international markets. RenewGrowth analyses the conditions for growth in these industries through two main themes: (1) industrial conditions (2) transnational linkages to international markets and technology development. RenewGrowth studies how industrial conditions in established firms, technology, knowledge and resources contribute to further growth. The projects` mapping shows that the offshore wind and solar energy industries are comprised of firms with differing activities along supply chains and many have utilized resources (knowledge, infrastructure, human resources) from established industries. Many of these firms are diversified, often with minor shares of activities coming from offshore wind or solar energy. This is particularly prevalent in offshore wind. The majority of firms have their main activity in other industries (particularly petroleum). Long-term opportunities are an important motivation for diversification. A mapping of offshore wind supplier industries across European countries shows that diversification from related industries has played a role in several countries, and that those countries that have developed larger domestic markets also have developed a broader spectrum of supplier industries than those with no or small home markets. Authorities can play a key role by stimulating expectations and opportunities for diversification, among others by developing home markets that contribute to industrial development. Results show that transitions do not happen easily. While there can be high degrees of technological relatedness between offshore wind and firms` primary activity, non-technological factors (i.e market and customer relations) can constitute barriers. Policies that strengthen firms` capabilities for new market entry, such as support for sales and marketing can thus be useful. The project has also explored how industries differ across value chains. Within the solar industry we see that actors express differing policy needs, among others depending on value chain segment and whether firms have a national or international orientation. RenewGrowth explores conditions for transnational linkages in terms of markets and knowledge networks. The project has pointed towards different mechanisms for international market access in absence of home markets. Among others how larger established firms have easier market access, and that small and young firms have benefited from connecting with larger firms or participating in demonstration projects. We executed a comparative study between the offshore wind industries in Norway and the Netherlands, which have developed differently in terms of market access, despite similarities in relevant resources in petro-maritime industries. Decline in the petroleum industry, dedicated actors and innovation system building strategies and larger expectations towards domestic markets in the Netherlands stands in contrast to the development in Norway. Renewgrowth also studies how participation in (inter)national knowledge networks facilitates international market access. The project has built up a data-set based on Norwegian firms` participation in R&D projects, demonstration projects as well as in commercial projects. Results show that participation in demonstration projects has a positive effect on market access, while participation in R&D projects only has an effect if firms collaborate with foreign partners, particularly from countries with a home market. RenewGrowth applies the technological innovation system framework, which enables analyses of strengths and weaknesses connected to development of technologies and industries. The project contributes to further development of this framework by offering new insights on how industrial and geographical context conditions influence this development. The project contributes with new knowledge on how industrial development of green niches occurs as part of sustainability transitions. The project is led by TIK Center for technology, innovation and culture at the University of Oslo, in collaboration with researchers at Utrecht University and SINTEF Digital. In addition to scientific publishing and popular dissemination, the project has delivered input on how policies aimed at knowledge and technology development better can facilitate industrial development aimed at international markets. The project to a wide extent disseminates results to stakeholders and wider publics.

Prosjektet har bidratt til kunnskap om hvordan grønn næringsutvikling og omstilling skjer, og har i utstrakt grad formidlet resultater, blant annet gjennom rapporter, media og presentasjoner for aktører i privat og offentlig sektor. Gjennom internasjonalt forskningssamarbeid har prosjektet bidratt til faglig utvikling innen forskningsfeltet bærekraftig transisjon, og spesifikt til videre utvikling av teknologiske innovasjonssystem som analyseramme. Blant annet har prosjektet bidratt til innsikt om industriell utvikling, koplinger mellom land og mekanismer for markedstilgang i internasjonal fornybar industri.

Global increase in investments in new renewable energy provides large opportunities for Norwegian firms. Norway promotes development of new renewable energy technologies (RET), in particular through public support of research and development with aims of industrial development. Firms in established industries have played important roles in these formative processes, exploiting opportunities for diversifying into RET reusing and modifying established key knowledge bases. Yet, key challenges remain with achieving growth in the emerging RETs beyond nascent stages (such as solar photovoltaics and offshore wind). Conditions for growth in the emerging technologies depend on developments in the broader institutional, industrial and geographic contexts. These contextual dimensions have emerged as a key topic in research on technological innovation systems, where there is demand for new conceptual contributions and empirical studies. RenewGrowth contributes to this dual challenge by applying and further developing the technological innovation systems approach. As such we develop new knowledge to assists policy makers and Norwegian firms and industries in developing strategies based on understanding of conditions for growth and industrial development. Echoing the project`s research questions derived from state of the art literature the project is organized in 5 work packages. WP1 provides knowledge on the status of solar PV and offshore wind industries. WP 2 explores the institutional and industrial context conditions for RET growth. WP 3 explores how Norwegian actors can link up with international markets and access key resources. WP 4 synthesizes insights and develops an empirically informed model to be used to develop a strategy manual for Norwegian renewable energy industry actors. WP 5 disseminates findings to users by establishing a technology and industry forum.