The Chinese Innovation System for Wind Energy: Structure, Functions and Performance
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The Chinese innovation system for wind energy: structure, functions and performance Rui Hu A thesis submitted for the degree of Doctor of Philosophy Centre for Environmental Policy Imperial College London May 2017 Declaration of originality This thesis is the result of the author’s own work and has not been submitted in any form for another degree of diploma at any other university. All the information derived from the work of others has been appropriately cited in the text. 2 Copyright Declaration The copyright of this thesis rests with the author and is made available under a Creative Commons Attribution Non-Commercial No Derivatives licence. Researchers are free to copy, distribute or transmit the thesis on the condition that they attribute it, that they do not use it for commercial purposes and that they do not alter, transform or build upon it. For any reuse or redistribution, researchers must make clear to others the licence terms of this work 3 Abstract Energy technology innovation is critical to transitioning to a sustainable energy system. The energy R&D expenditure worldwide has increased recently to combat the challenges of climate change, energy security and energy affordability. Emerging economies play an increasingly important role in energy technology innovation. As the largest energy producer and consumer, China’s energy technology innovation has an influential impact on the global energy system. China has emerged as the largest investor and user of renewable energy technology. The country accounts for 33% of the global wind power capacity, far ahead of the USA (17%) and Germany (11%). Among the world’s ten largest wind turbine producers, half of them are Chinese enterprises. China’s rapid development of wind technology attracted wide interest. The two key questions are a) how does China compare with leading countries in wind technology innovation, and b) what factors have been responsible for China’s successes and failures. This thesis draws upon innovation systems theory and innovation metrics to answer these two questions. It is found that China has caught up fast in inputs and certain outputs but significantly lags the leading countries in other aspects especially outcomes. The relative weakness in invention capability represents China’s most obvious bottlenecks. It demonstrates that the country’s system performance is highly related to the fulfilment of the system functions which are affected by the presence and capability of the structural elements. The thesis is offered as a comprehensive study on China’s wind energy innovation system. It presents useful lessons on facilitating the generation, adoption and diffusion of renewable energy technology as well as the challenges that need to be addressed to smooth the energy transition globally. The research makes methodological, empirical and theoretical contributions to the innovation systems literature. 4 Acknowledgements I would like to express my gratitude to my supervisor Professor Jim Skea for his encouragement, assistance and critical reading of the thesis draft. He has been very busy since he co-chaired the IPCC Working Group III but never discontinued the regular meetings between us. The persistence has greatly ensured that I drive on track when I was confronted with confusions. I wish to give my sincere thanks to my co-supervisor Dr Matthew Hannon who has guided my research and made suggestions throughout this PhD. He, in great curiosity and patience, has provided numerous comments on my research methods, paper manuscripts and chapter drafts. The edits in whatever forms he made have inspired me how to improve my language skills. My special thanks are due to Professor Arnulf Grubler at the International Institute for Applied Systems Analysis (IIASA) for his insightful comments on the metrics for energy innovation systems. My special thanks are also extended to Professor HE Dexin at the Chinese Wind Energy Association for providing very useful statistical reports and suggestions. I would also like to acknowledge Renée van Diemen who helped extract complicated patent data from the PATSTAT. My sincere thanks to Professor MA Jiaju and Miss XU Nuoyu at the East China University of Science and Technology for helping with the Chinese patent data. I have benefited from the participants’ valuable feedbacks in the 2nd EIS PhD Summer School on “Energy Innovation Systems and their Dynamics”, the 21st Annual SPRU PhD Forum, the DRUID Academy Conference 2016 and the BIEE 11th Oxford Research Conference. I would like to thank my parents and sister for their love and support. I acknowledge the sponsorship of the Research Councils UK Energy Strategy Fellowship and the China Scholarship Council. 5 Publications Journal papers Rui Hu, Jim Skea, Matthew Hannon, 2016. Measuring the effectiveness of energy innovation systems: an indicator framework and a case study. Submitted to a journal (revision required). Conference/working papers Rui Hu, Jim Skea, Matthew Hannon, 2016. The drivers for China's wind energy innovation system. BIEE 11th Oxford Research Conference, Oxford, United Kingdom. Rui Hu, Jim Skea, Matthew Hannon, 2016. A multidimensional indicator framework for evaluating energy innovation system. DRUID Academy Conference 2016, Bordeaux, France. Rui Hu, 2015. Innovation and technological capability of the Chinese wind turbine industry: An international comparative study. Young Scientists Summer Program 2015, IIASA, Austria. Book chapters Chapter 3 Theorising energy innovation (co-author) in Energy Technology Innovation for the 21st Century: Accelerating Energy Revolution, Edward Elgar, 2017 (in progress). Chapter 4 Measuring energy innovation (lead author) in Energy Technology Innovation for the 21st Century: Accelerating Energy Revolution, Edward Elgar, 2017 (in progress). Chapter 9 Wind energy (lead author) in Energy Technology Innovation for the 21st Century: Accelerating Energy Revolution, Edward Elgar, 2017 (in progress). 6 Table of Contents Abstract .......................................................................................................................................................... 4 Acknowledgements ....................................................................................................................................... 5 Publications ................................................................................................................................................... 6 Abbreviations and acronyms .....................................................................................................................16 Chapter 1 Introduction ...............................................................................................................................18 1.1 Overview ..................................................................................................................................... 18 1.2 Background ................................................................................................................................ 19 1.3 Research questions .................................................................................................................... 26 1.4 Thesis outline ............................................................................................................................. 28 Chapter 2 Literature review ........................................................................................................................31 2.1 China’s technological capability in wind energy .................................................................... 31 2.2 China’s technology-seeking approaches ................................................................................. 33 2.3 The international linkages for China’s innovation ................................................................ 35 2.4 The drivers and barriers for China’s wind innovation .......................................................... 37 2.5 Historical lessons from other countries ................................................................................. 40 2.6 Summary .................................................................................................................................... 45 Chapter 3 Theoretical foundations ............................................................................................................48 3.1 The concept of innovation ........................................................................................................ 48 3.2 National system of innovation ................................................................................................. 50 3.3 Technological innovation system ............................................................................................ 57 3.4 Energy innovation system ........................................................................................................ 64 3.5 The analytical framework for the thesis ................................................................................. 68 3.6 Summary .................................................................................................................................... 70 Chapter 4 Methodology .............................................................................................................................72 4.1 Research design ......................................................................................................................... 72 4.2 Research methods ....................................................................................................................