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Finally, the broader context of the innovation system matters. 2.1
Technological, national or geographical factors affect the relative
importance, roles and relationships between components of the
innovation system or the specific incentive structures in place. The
concept of a ‘national systems of innovation’ (Nelson 1993; Lundvall
2009) describes this specificity. As a result of this specificity, innovation
systems for specific energy technologies vary substantively in their
details—involving different sets of actors (e.g., incumbents or new
entrants), interacting in different ways (e.g., research or market
development), focussing on different problems (e.g., problem solving
or learning by doing), and acting at different spatial scales (e.g.,
national or global) (Jacobsson and Lauber 2006; Hekkert et al. 2007).
Energy technology innovation system (ETIS) is the application of a
systemic perspective on innovation to energy technologies. In terms of
the innovation system, this means the synthesis and analysis of data in
the various stages of the innovation process; on different inputs, outputs,
and outcomes; on actors and institutions; and on the key innovation
processes. In terms of the energy system, this means the synthesis and
analysis of data on both the energy supply side and the energy demand
side; on different energy technologies; and in both developed and
developing countries. ETIS is thus an integrative approach that aims
to comprehensively cover all the components of the energy technology
innovation system, in terms of innovations, mechanisms of change
and supporting policies, and energy technologies (supply and end
use), as well as in terms of geographical and actor network coverage.
The systemic perspective necessitates an integrative analysis: from
large-scale supply side technologies to dispersed end use technologies
within the energy system and from early stage R&D through market
formation to diffusion activities.
1.2.2 Policy for the Innovation System
Policies for innovation can directly tackle the innovation process,
support the innovation system, or unintentionally impact innovation
while targeting an unrelated concern.
Direct policies for innovation vary according to their target and
their timing during the innovation process. Policy is needed at each
stage of this process (see the top of Figure 1.4 for examples). The role
of the government is typically viewed as being most evident at the
earliest stage of basic science and research. However, together with the
private sector, governments are also engines of applied energy R&D.
Governments must also play an important role in leveraging private
Chapter 1 Low Carbon Technology and Innovation Policy 37
Technological, national or geographical factors affect the relative
importance, roles and relationships between components of the
innovation system or the specific incentive structures in place. The
concept of a ‘national systems of innovation’ (Nelson 1993; Lundvall
2009) describes this specificity. As a result of this specificity, innovation
systems for specific energy technologies vary substantively in their
details—involving different sets of actors (e.g., incumbents or new
entrants), interacting in different ways (e.g., research or market
development), focussing on different problems (e.g., problem solving
or learning by doing), and acting at different spatial scales (e.g.,
national or global) (Jacobsson and Lauber 2006; Hekkert et al. 2007).
Energy technology innovation system (ETIS) is the application of a
systemic perspective on innovation to energy technologies. In terms of
the innovation system, this means the synthesis and analysis of data in
the various stages of the innovation process; on different inputs, outputs,
and outcomes; on actors and institutions; and on the key innovation
processes. In terms of the energy system, this means the synthesis and
analysis of data on both the energy supply side and the energy demand
side; on different energy technologies; and in both developed and
developing countries. ETIS is thus an integrative approach that aims
to comprehensively cover all the components of the energy technology
innovation system, in terms of innovations, mechanisms of change
and supporting policies, and energy technologies (supply and end
use), as well as in terms of geographical and actor network coverage.
The systemic perspective necessitates an integrative analysis: from
large-scale supply side technologies to dispersed end use technologies
within the energy system and from early stage R&D through market
formation to diffusion activities.
1.2.2 Policy for the Innovation System
Policies for innovation can directly tackle the innovation process,
support the innovation system, or unintentionally impact innovation
while targeting an unrelated concern.
Direct policies for innovation vary according to their target and
their timing during the innovation process. Policy is needed at each
stage of this process (see the top of Figure 1.4 for examples). The role
of the government is typically viewed as being most evident at the
earliest stage of basic science and research. However, together with the
private sector, governments are also engines of applied energy R&D.
Governments must also play an important role in leveraging private
Chapter 1 Low Carbon Technology and Innovation Policy 37
