The analysis of the importance of supply side and demand side factors with regard to innovative behavior is quite old. In this paper, these two categories are used to distinguish and examine the relevance of several success factors for collaborative innovation projects on the firm level in the German energy sector. The literature emphasizes that solving environmental problems requires extensive technological change. On the other hand, due to higher prices the market push is weaker. Regulatory factors are therefore designed to stimulate environmental innovations. The relative influence of these three categories on project performance is investigated on the basis of a sample of 128 German collaborative energy innovation projects in the development phase using a scale-based approach and structural equation modeling at the firm level. The results confirm the importance of supply side factors followed by demand side factors. In contrast to literary assumptions, R&D subsidies played no significant role.
Understanding Energy Innovation
