Abstract
Electricity sector liberalisation has coincided with a significant decline in R&D spending. This paper reviews the industrial organisation literature on R&D and innovation to explore the likely causes of the decline in R&D spending in the electricity sector. Meanwhile, R&D productivity and innovative outputs in utilities and equipment suppliers appear to have improved. However, a lasting decline in R&D expenditure can have a negative long-term effect on technological progress and innovation in the sector. We conclude that the decline in R&D could have been predicted from the literature. We also discuss the need to reorient the post-liberalisation technology policy.
Original language | English |
---|---|
Journal | Research Policy |
Volume | 37 |
Issue number | 6-7 |
Pages (from-to) | 995-1008 |
Number of pages | 14 |
ISSN | 0048-7333 |
DOIs | |
Publication status | Published - 2008 |
Externally published | Yes |
Keywords
- Innovation
- R&D expenditure
- Electricity reform
- Regulation
- Ownership