Electricity Sector Liberalisation and Innovation: An Analysis of the UK's Patenting Activities

Tooraj Jamasb*, Michael G. Pollitt

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Liberalisation has had a marked effect on innovative activities in the electricity industry. In particular, electricity reforms have resulted in a reduction in R&D spending in the sector. R&D and patenting activities are respectively regarded as innovative inputs to and outputs from technological progress. The present paper examines the effect of the reforms on patenting activity in the UK electricity sector. The results indicate that electricity related patents in non-nuclear and renewable technologies have increased in the post-liberalisation period. We attribute this trend to the increased commercialisation of the sector. While this development is positive, we argue that a lasting decline in R&D will in the longer run reduce technological progress and innovation in the sector. In order to maintain the pace of innovation, we discuss the need to design a new framework for innovation systems that is commensurate with the functioning and incentive mechanisms of a liberalised sector.
Original languageEnglish
JournalResearch Policy
Volume40
Issue number2
Pages (from-to)309-324
Number of pages16
ISSN0048-7333
DOIs
Publication statusPublished - 2011
Externally publishedYes

Keywords

  • Electricity
  • Patent
  • Innovation
  • Technology
  • Liberalisation

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