A Regional Analysis of Renewable Energy Patenting in Italy

Abstract

The paper investigates the mechanisms of induced innovation in the renewable energy industry in Italy. Descriptive analysis reveals a decoupling of innovation and production: significant RES-related innovation in Northern Italy, high levels of renewable energy production in Southern Italy. A panel analysis from 1997 to 2007 for the 20 Italian regions reveals that renewable-specific local public R&D expenditure is the main determinant of the renewable energy patenting pattern. Local financial incentives play a significant, but less important role. The wind and solar sources depend more on local public intervention than other RES such as biomass. The development of RES innovation activities appears to depend also on the political orientation of regional councils, thus confirming prior research on the role of social acceptance and political support in the development of RES.

Keywords: induced innovation, patents, regional analysis, renewable energy sources (RES)

JEL Classification: Q55, Q58, O34, O38