DRUID Working Paper No. 07-18 Learning to Grow: A Comparative Analysis of the Wind Energy sector in Denmark and India By Kari Kristinsson and Rekha Rao www.druid.dk Learning to Grow: A Comparative Analysis of the Wind Energy Sector in Denmark and India Kari Kristinsson DRUID, Department of Business Studies Aalborg University Denmark E-mail:
[email protected] Rekha Rao Laboratory of Economics and Management Scuola Superiore S. Anna Italy Corresponding e-mail:
[email protected] Abstract: This paper uses sectoral systems of innovation framework to examine the relationship between technology policy and industrial development by comparing the emergence of the wind energy sector in Denmark and India. Since the late 1970s Denmark has led the development of a global wind energy industry and in 2004 wind energy supplied 18,8% percent of Denmark’s electricity consumption. India was however a late entrant that managed in a few years to establish itself as the fifth largest producer of wind energy in the world. We suggest that India’s unique policy of ‘interactive learning’ with international and especially Danish actors, instead of imitation of foreign technology policies and institutions, was a substantial contributor to India’s success in developing their wind energy industry. Key words: Wind energy industry; Denmark; India; sectoral systems of innovation Jel codes: O38; Q48 ISBN 978- 87-7873-247-7 www.druid.dk 1 ________________________________________________________________________________________________ Introduction We begin this paper by looking at the evolution of the renewable energy sector globally and namely development of wind energy sector. In the later part of this section, we will discuss the wind energy sector in our case countries, i.e., Denmark and India.