Market, Policy and Environmental Influences on the Creation and Adoption of Solar Power in California, 1900-2010

Abstract

Throughout its brief history, California has established itself as a national or international leader in key industries — such as aerospace, computing and entertainment — through early mover pre-emption and strong clustering effects. California was also an early leader in the three key technologies of solar energy generation, but has failed to sustain a lead in any of them. Here I review the factors leading to the creation and of the California solar industry, and discuss both the problems faced by pioneer firms and the limited clustering effects contributed to the transient nature of their competitive advantage.

Keywords: solar power, renewable energy, energy policy, industry clusters