International markets and technological innovation systems: The case of offshore wind

Abstract

This research addresses the challenging question of how to support industry formation policies without relying on expensive domestic market formation strategies. Innovation systems literature classically focuses on the need to support home market development to encourage both technological diffusion and generation of a promising technology. However, it is possible to decouple these notions in a national context under certain conditions. Through in-depth interviews with key stakeholders in the Dutch offshore wind industry, we unearth the conditions for young and established firms to access international markets in the absence of a home market. We determine that established firms can access international markets without significant hinderances or domestic support and can help form the backbone of an emerging industry. Young firms are dependent on a well-functioning innovation system, which facilitates international market access through three pathways: 1) via local incumbents; 2) direct access to international markets; 3) via protected niche-spaces.