Competition and Cooperation between Europe and China in the Wind Power Sector

Abstract

Summary This paper uses a value chain lens to examine the prospects for competition and cooperation between Europe and China in the global wind power sector. Drawing on insights from fieldwork conducted in 2010 combined with secondary industry data, we find that Chinese and European industries are developing distinct models of industrial‐technological organisation. The usual headlines emphasising Sino‐European competition or conflict fail to capture the complexity of current reality. While competition among lead firms is increasing, there are also considerable prospects for increased collaboration between firms across the value chains. China, Europe and the world can benefit from such collaboration to drive down the costs of the technology, improve quality, enhance innovation capabilities and make wind power a more credible energy option for the world. Policy initiatives in and between China and Europe have a big role to play in securing mutually beneficial relationships for the future.

From lagging to leading? Technological innovation systems in emerging economies and the case of Chinese wind power

“…The supply chain for components is well-developed in China (Lema et al, 2011), although interviewees indicated that this was mostly true for turbines up to 1.5 MW. It is difficult to determine how 'truly domestic' this supply China is as many foreign component manufactures have production facilities in China.…”

“…The biggest difference between these markets and the Chinese market is level of quality demanded (interviews, Lema et al, 2011, see also Section 6.2). A number of project managers who focused on the global market that we interviewed indicated that these quality demands are expressed in project development finance conditions.…”

Configuration of technology networks in the wind turbine industry. A comparative study of technology management models in European and Chinese lead firms

“…So far, research and literature have largely analysed the European wind turbine industry and the global value chain for wind energy as seen from a Northern perspective (Karnøe and Buchhorn, 2010;Lema et al, 2011;Lema et al, 2013). Europe has traditionally played a lead role as an innovation hub in the development of modern wind turbines.…”

“…Chen et al (2014) shows how these firms access technology through engaging in collaborative ties across geography, e.g. within China and globally (Chen et al, 2014;Lewis, 2013;Silva and Klagge, 2014;Kirkegaard, 2015), and Lema et al (2011) have analysed the potential for collaboration between European and Chinese actors. Their studies show how the Chinese market has become a driver for reshaping the dynamics of the industry (Lema et al, 2011).…”

“…within China and globally (Chen et al, 2014;Lewis, 2013;Silva and Klagge, 2014;Kirkegaard, 2015), and Lema et al (2011) have analysed the potential for collaboration between European and Chinese actors. Their studies show how the Chinese market has become a driver for reshaping the dynamics of the industry (Lema et al, 2011). However, there are still significant gaps in our knowledge about global innovation networks in this industry, their dynamics and the underlying different technology management strategies.…”