Where Diffusion of Clean Technologies and Barriers to Innovation Clash: Application to the Global Diffusion of the Electrical Arc Furnace

Abstract

This paper analyses the role of barriers preventing the worldwide take-up of a clean technology: the electrical arc furnace. It also identifies which barriers affect a parameter that summarises the combined effect of all of them. The first step, determination of the combined effect of the barriers, is carried out using a novel approach to model the diffusion of innovations. This new approach is composed only by terms that account for the driver of innovations and the parameter that summarises the effect of barriers. The objective quantification of the effect of barriers in the diffusion of innovations opens up new opportunities for designing policies to overcome the barriers identified as the most relevant, for identifying the effect of existing policies, for relating innovation indicators with those barriers or for better incorporating the effect of barriers in bottom-up models that forecast the technological evolution of the economy.