DOE OSTI2019
Different learning channels (i.e., learning from upstream actors, local network, global codified knowledge, etc.) coexist in firms’ technological innovation processes. Although firms are exposed to globalization and convenient communication and transportation tools, researchers still argue about the role of geography in technology innovation. Geographic proximity can facilitate knowledge spillover and network-building. Localized learning and the significance of geography indicate the importance of local knowledge in innovative activities. Local knowledge tends to be more closely aligned with local firms’ technological demand and easier to understand and absorb, because they are created and applied in the same context. However, following Schumpeter, innovation researchers believe that diverse knowledge, especially knowledge from external industries and geographically distant places, is a valuable source for innovation, especially disruptive innovation. Therefore, firms must balance different learning channels, especially between localized learning and global learning. However, it is still unclear about the extent to which localized learning is important for technology innovations and which factors influence the degree of localized learning. Meanwhile, most studies in the area of localized learning usually take no account of the international dimension and the interdependent of knowledge at different geographic scales. Different learning channels (i.e., learning from upstream actors, local network, global codified knowledge, etc.) coexist in firms’ technological innovation processes. Although firms are exposed to globalization and convenient communication and transportation tools, researchers still argue about the role of geography in technology innovation. Geographic proximity can facilitate knowledge spillover and network-building. Localized learning and the significance of geography indicate the importance of local knowledge in innovative activities. Local knowledge tends to be more closely aligned with local firms’ technological demand and easier to understand and absorb, because they are created and applied in the same context. However, following Schumpeter, innovation researchers believe that diverse knowledge, especially knowledge from external industries and geographically distant places, is a valuable source for innovation, especially disruptive innovation. Therefore, firms must balance different learning channels, especially between localized learning and global learning. However, it is still unclear about the extent to which localized learning is important for technology innovations and which factors influence the degree of localized learning. Meanwhile, most studies in the area of localized learning usually take no account of the international dimension and the interdependent of knowledge at different geographic scales. To address this research gap, this paper empirically investigated firms’ learning and innovation processes in relation to the geography. The aim is to answer the following three questions: 1) how does geographic distance influence knowledge spillover; 2) how technological characteristics influence knowledge acquisition choices as regards local vs. non-local knowledge? and 3) how do local and non-local knowledge affect the quality of innovation? The subject of our empirical inquiry is photovoltaic balance-of-systems (PV BOS) components. This choice is primarily motivated by two factors: (1) large-scale deployment of distributed solar PV technologies is widely considered to be an important piece in addressing the environmental impacts of the electricity sector, making PV an important technology to study; furthermore, there is a general consensus that the biggest barrier for a wider deployment of PV is the high price of non-module components, and (2) technological aspects of non-module components of PV systems make local conditions (climate, regulation, learning networks, etc.) salient, thus affording a rich empirical setting to explore the geography-innovation-economy interactions at the local level. We find that the localization effect of technological learning in the solar PV BOS industry is at state level, the number of citations-based linkages decreases with distance, and we also find that international knowledge significantly contributes to the quality of patents, which suggests that state border might be a barrier of current knowledge spillover, and only focusing on local innovation networks is not sufficient for promoting PV BOS innovation.
29 ENERGY PLANNING, POLICY, AND ECONOMY↗