Competition and Cooperation between Europe and China in the Wind Power Sector

IDS Working Paper, Volume 2011 Number 377

45 Pages Posted: 4 Jan 2012 Last revised: 2 Apr 2012

See all articles by Rasmus Lema

Rasmus Lema

Aalborg University - Department of Business and Management; University of Johannesburg - College of Business and Economics

Axel Berger

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE)

Hubert Schmitz

University of Sussex - Institute of Development Studies

Song Hong

Institute of World Economics

Date Written: October 1, 2011

Abstract

This paper uses a value chain lens to examine the prospects for competition and cooperation between Europe and China in the global wind power sector. Drawing on insights from fieldwork conducted in 2010 combined with secondary industry data, we find that Chinese and European industries are developing distinct models of industrial technological organisation. The usual headlines emphasising Sino-European competition or conflict fail to capture the complexity of current reality. While competition among lead firms is increasing, there are also considerable prospects for increased collaboration between firms across the value chains. China, Europe and the world can benefit from such collaboration to drive down the costs of the technology, improve quality, enhance innovation capabilities and make wind power a more credible energy option for the world. Policy initiatives in and between China and Europe have a big role to play in securing mutually beneficial relationships for the future.

Keywords: wind power, global value chain, competition, cooperation, Europe, China

Suggested Citation

Lema, Rasmus and Berger, Axel and Schmitz, Hubert and Hong, Song, Competition and Cooperation between Europe and China in the Wind Power Sector (October 1, 2011). IDS Working Paper, Volume 2011 Number 377. Available at SSRN: https://ssrn.com/abstract=1978846 or http://dx.doi.org/10.2139/ssrn.1978846

Rasmus Lema (Contact Author)

Aalborg University - Department of Business and Management ( email )

Copenhagen, DK-2450
Denmark
45 9940 2708 (Phone)

University of Johannesburg - College of Business and Economics ( email )

South Africa

Axel Berger

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE) ( email )

Tulpenfeld 6
Bonn, 53113
Germany

HOME PAGE: http://www.die-gdi.de

Hubert Schmitz

University of Sussex - Institute of Development Studies ( email )

Brighton
Falmer, Brighton, East Sussex BN1 9RE
United Kingdom

HOME PAGE: http://www.ids.ac.uk

Song Hong

Institute of World Economics ( email )

China

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