Diffusion of Green Innovations: The Organizational Setup of Pilot Projects and its Influence on Consumer Perceptions

Abstract

Pilot-, test- and demonstration-projects (PTDs) are a prominent tool to promote the diffusion of green technologies by activating the ‘quadruple helix’, i.e. a collaboration of industry, academia, government and civil society. However, as technology diffusion is heavily dependent on individual attributes and beliefs of potential adopters, it is important to understand the influence of a PTD’s organizational setup on the technology perceptions of potential participants. By varying the information on a PTD’s organizational setup in a survey experiment among a selected sample of potential PTD-participants, we gather first experimental evidence for the effect of different PTD-setups on the perception of green technologies. We show that the organizational setup has a significant impact on a product’s perceived contribution to the energy transition, its establishment in the market, cost-reduction potential, innovativeness and environmental friendliness. In particular, full organizational cooperation between government, university and industry seems to consistently improve perceptions compared to a partial setup. Regarding the willingness to participate in a PTD, we find that communication and support are the most imperative aspects and even more important than financial benefits. Our findings provide policy-makers with a more ample foundation on how PTDs should be designed to successfully transfer technologies to the market.

Keywords: Pilot projects, Organizational setup, Adoption decision, Quadruple Helix, Innovation diffusion

JEL Classification: Q01, O33, C31, C93, D12