Page 90 - Low Carbon Development in China and India
P. 90
to overcome; (ii) For several years after this failure, the technology was 2.1
not trusted; (iii) Experience was lost with the collapse of the industry;
(iv) Verification is essential and not expensive; (v) Inspection and
verification have proven successful in Hawaii; (vi) Both R&D and
incentives in the US SWH industry placed excessive focus on collector
units rather than on system integration; and (vii) Lack of involvement
of utilities and builders appears to have hurt the industry.
1.3.7 Policies need to be Strategic, Continuous, Flexible,
and System Oriented
Innovation and diffusion policies for the development and introduction
of heat pumps provide an interesting case study on policy learning.
The assessment of innovation and diffusion policies for the heat pump
systems can be used to illustrate some general policy conclusions.
The key points of this case are:
• The assessment shows the need for strategic, long-term, and
continuous support. First attempts to introduce a new technology
failed, and continuous support was needed to overcome initial
shortcomings. Technological change takes considerable time.
• The combination of policy instruments may have to change and the
government’s approach should be flexible. The policy intervention
may initially allow uncoordinated intervention to support
entrepreneurial testing, but then should be developed into credible,
stable and transparent strategies that allow industry to make long-
term investments.
• The policy interventions need to be system-oriented and consider
both the development of the technology and its emerging market.
In other words, R&D is important as a part of the policy strategy,
but not enough.
• The assessment indicates the need for testing and certification
processes to support technical quality and create credibility and
legitimacy. R&D initiatives and subsidies require testing and
certification to support stable market development.
• The support of networking to improve strategic integration and
the use of learning and ensuring feedback and spill-over effects
seem essential.
1.3.8 Role of Standards is Important for End-Use Products
Dynamic and continuously adjusted standards have been successful in
accelerating the trend of energy efficiency improvement in many end-
Chapter 1 Low Carbon Technology and Innovation Policy 55
not trusted; (iii) Experience was lost with the collapse of the industry;
(iv) Verification is essential and not expensive; (v) Inspection and
verification have proven successful in Hawaii; (vi) Both R&D and
incentives in the US SWH industry placed excessive focus on collector
units rather than on system integration; and (vii) Lack of involvement
of utilities and builders appears to have hurt the industry.
1.3.7 Policies need to be Strategic, Continuous, Flexible,
and System Oriented
Innovation and diffusion policies for the development and introduction
of heat pumps provide an interesting case study on policy learning.
The assessment of innovation and diffusion policies for the heat pump
systems can be used to illustrate some general policy conclusions.
The key points of this case are:
• The assessment shows the need for strategic, long-term, and
continuous support. First attempts to introduce a new technology
failed, and continuous support was needed to overcome initial
shortcomings. Technological change takes considerable time.
• The combination of policy instruments may have to change and the
government’s approach should be flexible. The policy intervention
may initially allow uncoordinated intervention to support
entrepreneurial testing, but then should be developed into credible,
stable and transparent strategies that allow industry to make long-
term investments.
• The policy interventions need to be system-oriented and consider
both the development of the technology and its emerging market.
In other words, R&D is important as a part of the policy strategy,
but not enough.
• The assessment indicates the need for testing and certification
processes to support technical quality and create credibility and
legitimacy. R&D initiatives and subsidies require testing and
certification to support stable market development.
• The support of networking to improve strategic integration and
the use of learning and ensuring feedback and spill-over effects
seem essential.
1.3.8 Role of Standards is Important for End-Use Products
Dynamic and continuously adjusted standards have been successful in
accelerating the trend of energy efficiency improvement in many end-
Chapter 1 Low Carbon Technology and Innovation Policy 55
