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1 Introduction

Development and implementation of low-carbon electricity generation technologies are
important for several reasons. To name a few, moving away from fossil-based electricity
generation can help increase energy security [1], promote the diversification of energy
sources [2], stimulate economic growth [3] and national competitiveness [4], reduce
pollution [5], and reduce local water demand [6]. Also, large-scale movement away from
practices that create greenhouse gases will help combat climate change.

The scientific consensus on the implications of climate change is serious [7, 8].
Anthropogenic greenhouse gas emissions from energy production and industry sources
are causing an “unequivocal … warming of the climate system” [9]. This warming trend
will affect important earth systems that affect global health and prosperity [9, 10]. While
the case has been made that we “already possess the fundamental scientific, technical,
and industrial know-how to solve the carbon and climate problem for the next half
century” [5], the diffusion of low-carbon technologies continues to face significant
economic, technical, and political obstacles. Low-carbon technologies can assist in the
avoidance and reduction of greenhouse gases and other emissions that have been linked
to climate change. Sustained energy technology innovation and market development
policies are essential to overcoming these implementation obstacles and are increasingly
recognized as a national policy priority for developed and emerging economies alike [11,
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12]. In this context, the need for rigorous investigation of innovation dynamics of low-
carbon technologies is essential to crafting effective innovation and technology transfer
policy.

Innovation relies upon a complex ecosystem of fundamental capabilities, an “industrial
commons” [13], that serves as a vital source of breakthrough, evolutionary, and
incremental innovation [14] and is particularly important for the maturation of new
alternative energy products [15]. However, for the past several decades, observers have
noted persistent underinvestment in the U.S. energy infrastructure [16], manufacturing
[17], and research and development innovation bases [18–20]. While there are
indications that some recent research investments are accelerating the development of
new technologies [21], several studies indicate insufficient investment [18, 20] to achieve
the necessary performance for market adoption [22], to support new technology
development [23], and to support the U.S. leadership position in the global economy [24].
For all these reasons, current economic leaders recently called for a massive increase in
public renewable energy research and development spending [23].

In recent years, corporate research, development, and deployment dollars have also been
important for advancement of the renewable energy economy [25]. However, the
recession over the last two years has further hampered domestic corporate research
investments [26]. Simultaneously, massive investment in industrial innovative capacity
is occurring in other countries, with a specific focus on renewable energy innovation [16,
27]. Because of global competition for market share in alternative energy, innovation in

1 Useful resources to determine national and regional policies are
http://www.iea.org/textbase/pm/?mode=re and http://www.dsireusa.org/.

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