Inter-sector network and clean energy innovation: Evidence from the wind power sector

Clean energy technology innovation is never an isolated process within the energy sector. The influence of related industrial sectors on clean energy innovation has, however, not been extensively studied. In this paper, we examine how the structure of existing related industrial sectors, which we name as the inter-sector network, affects clean energy technology innovation. We present a novel approach to measuring various characteristics of the inter-sector network. Using panel data of 61 countries from 1997 to 2012, we test the impacts of three key structural attributes of the inter-sector network-size, strength, and proximity-on innovation performance in the wind power sector. We have three major findings: 1) A country with more industries related to the wind industry is likely to have higher knowledge generation and market deployment in the wind power sector; 2) A country with more globally competitive industries related to wind power is likely to have higher market deployment of wind technologies, but it does not significantly affect knowledge generation; 3) A inter-sector network that is more closely related to the wind industry facilitates knowledge generation but may hinder wind technology deployment. These findings highlight the double-sided impacts of the inter-sector network on clean energy innovation. Our findings also suggest the need for industrial policies to foster interactions between clean energy sectors and their related manufacturing sectors. (C) 2020 Elsevier Ltd. All rights reserved.