The role of domestic markets in international technological innovation systems
Håkon E. Normann and Jens Hanson have published the article on “The role of domestic markets in international technological innovation systems” in Industry and Innovation.
The offshore wind industry
The international offshore wind market has experienced significant growth in recent years. This growth has led a number of Norwegian firms (many primarily engaged in the petro-maritime industries) to explore these international markets. These markets have been particularly important due to the lack of a domestic market for offshore wind in Norway.
Opportunities and challenges for suppliers
The article examines the opportunities and challenges Norwegian suppliers to an international market for offshore wind experience in the absence of a domestic market.
The findings based on data from an industry survey and interviews suggest that larger firms are less challenged by weak local market formation than smaller firms. Moreover, larger firms can play an important role as intermediaries helping the many smaller firms with access to financial and knowledge resources as well as with access to markets. However, the potential benefit from links between larger and smaller firms remains unrealized as smaller firms report lack of collaboration with larger firms as a challenge.
Most of the firms in the offshore wind industry have their primary activities in other industries, such as petro-maritime industries. The paper includes a discussion about possible implications of this close relationship between the offshore petro-maritime industries and the offshore wind industries. This relationship can be seen as dualistic in that it provides not only access to experience, competences and resources, but also that this relationship makes the offshore wind supply industry in Norway vulnerable to changes in the oil and gas industry. This dual relationship is important for the discussion about politics in transitions because it underlines that policies that target new industry formation need to be seen in conjunction with petroleum related policies.