Varieties of Innovation in Wind and Solar Industries
This chapter lays out the central empirical puzzle that motivates the book. It makes two central claims. First, it shows that a common political logic led governments in China, Germany, and the United States to converge on similar policy goals and industrial policy tools in support of wind and solar industries. The need to politically justify public investments in renewable energy sectors ultimately yielded similar growth and employment-focused industrial policies irrespective of the underlying political system. The second half of the chapter chronicles the persistent and consequential divergence of national industrial specializations despite these policy similarities. In the early 2000s, just after China’s WTO accession accelerated changes in the organization of many global industries, firms chose different technological specializations and competitive strategies for participation in emerging wind and solar industries: innovative manufacturing in China, customization in Germany, and invention in the United States.