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The impact of pilot and demonstration plants on innovation: The case of advanced biofuel patenting in the European Union
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.ORCID iD: 0000-0002-2031-6710
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.ORCID iD: 0000-0002-5194-4197
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.ORCID iD: 0000-0003-2264-7043
2019 (English)In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 210, p. 42-55Article in journal (Refereed) Published
Abstract [en]

The objective of this paper is to investigate how pilot and demonstration plants affect innovation in the empirical context of advanced biofuel technology. Patent counts are used as a proxy for innovation; we employ data for eight EU Member States over the time-period 1980–2011, and negative binomial regression techniques. The focus is on plant investments that have received public co-funding. The results are overall robust to alternative model specifications, and show that the knowledge generated through past investments in pilot and demonstration plants has had positive effects on advanced biofuel patenting activities. This result is particularly valid for so-called experimental plants, i.e., aiming at testing the technical viability of new technology. The empirical analysis does not indicate the presence of any positive interaction between investments in experimental plants and biofuel blending policies, i.e., in the sense that more stringent blending requirements can raise the rate-of-return on additional pilot tests. Moreover, advanced biofuel innovation is also affected through knowledge spillovers across the selected EU Member States. The paper ends by outlining avenues for future research on the role of pilot and demonstration plants in technology development.

Place, publisher, year, edition, pages
Elsevier, 2019. Vol. 210, p. 42-55
Keywords [en]
Innovation, Pilot and demonstration plants, Patents, Advanced biofuels, European Union
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:ltu:diva-72793DOI: 10.1016/j.ijpe.2019.01.002ISI: 000466056100004Scopus ID: 2-s2.0-85060346569OAI: oai:DiVA.org:ltu-72793DiVA, id: diva2:1286805
Note

Validerad;2019;Nivå 2;2019-02-07 (svasva)

Available from: 2019-02-07 Created: 2019-02-07 Last updated: 2019-06-18Bibliographically approved

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Palage, KristofferLundmark, RobertSöderholm, Patrik

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