Low-carbon innovation and technology transfer in latecomer countries: Insights from solar PV in the clean development mechanism

Abstract

This paper examines the organizational arrangements for technology supply in solar photovoltaic projects in the Clean Development Mechanism (CDM). It shows that while lower middle-income countries typically import solar PV equipment into CDM projects, China, India and Thailand have begun to use new organizational arrangements for technology transfer which reflect the overall industry maturity in the solar PV sectors in these countries. This has great potential for long-term climate change mitigation efforts. However, the initiation of these new organizational arrangements often preceded the supply of technology into CDM projects. This raises important questions about the role of CDM in spearheading the development of technological capabilities required for sustainable development. The paper uses these findings to add to the literature about technology in CDM and to the wider policy debates over the future of the global climate regime. Technology transfer does not become less important as developing countries' capabilities mature, but the nature of technology transfer changes over time. This suggests a need to differentiate between countries at different levels of development. Lower middle-income countries may have greater needs for building technological capabilities whereas cooperative activities may be suitable for upper middle-income countries that already have capabilities to address climate change.

Unrelated diversification in latecomer contexts: Emergence of the Chinese solar photovoltaics industry

“…Second, and in contrast to important accounts in catching-up literature, the pioneering actors in China did not build their capabilities through conventional technology transfer and FDIbased learning in the supplier networks of foreign lead firms. They rather transplanted -and innovated on (see Nahm and Steinfeld, 2014) -an emerging industrial path by substituting missing local capabilities with direct access to international resources through variegated channels of 'non-conventional' technology transfer (Lema and Lema, 2016;Lema and Lema, 2012). Figure 5 further specifies these channels.…”

Global Innovation Systems—A conceptual framework for innovation dynamics in transnational contexts

“…Also formal and informal institutions may have varying spatial reach (Drori et al, 2003;Fuenfschilling and Binz, 2017;Meyer et al, 1997). Among the often-cited regulatory institutions in IS research are international policy regimes and treaties (Conca et al, 2006), as well as technology transfer mechanisms (for instance the clean development mechanism of the Kyoto protocol), that set boundary conditions for innovation processes (Gosens et al, 2015;Lema and Lema, 2016). Intellectual property rights (IPRs) are a specific form of an internationally valid institution that is crucial to the functioning of many innovation activities (Auerswald and Stefanotti, 2012).…”

A Functional Analysis of Technological Innovation Systems in Developing Countries: An Evaluation of Iran’s Photovoltaic Innovation System

“…Therefore, the experience of such countries in technological learning begins with learning from ready-to-use technologies. In particular, East Asia countries such as Thailand, India, and China in the PV industry have specifically begun to use technology transfer to develop knowledge and to build technological capability [64][65][66]. As a result, the historical stages of technological learning in these countries consist of three stages, including engineering, development, and research activities.…”