Global Perspectives on Wind Energy Innovation: Policy Impacts and Component-Level Analysis

Abstract

In recent years, the slowdown in wind capacity installation and cost reduction contrasts the urgent need to meet climate goals, prompting the necessity for comprehensive research on wind technology. This study develops patent search strategies and establish patent databases in wind energy and its components, alongside a manually collected policy database, across 112 countries from 1980 to 2020. The findings indicate a notable upturn in wind policies and patents from around 1995, peaking in 2010. The econometric results reveal both fiscal instruments and voluntary programs significantly foster innovation, particularly fiscal instruments in non-OECD countries. However, quotas, along with information and education initiatives, exhibit a detrimental effect overall. Moreover, contrary to common perception, the results show that regulation and legislation demonstrate significant potential in driving innovation in core and exclusive wind components, such as blades and control systems. Counterfactual analysis further reveals fiscal instruments contributed 123.7% growth in wind patents, while voluntary programs contributed 3.1%. Additionally, regulation and legislation contributed 77.9% and 237.8% growth in blade and control system components, respectively. The findings underscore the importance of understanding the impact of diverse policies on various types of innovations to foster advancements in wind technology.

Keywords: Wind energy, policy, innovation, Components, Patent analysis, Counterfactual analysis