However, market diffusion and adoption in China is not ideal. This paper examines the blocking and inducement mechanisms of China's PV industry development from the perspective of technological innovation. By incorporating a Technological Innovation System (TIS) approach, the analysis performed here complements the previous literature, which has not grounded itself in a theoretical framework. In addition, to determine the current market dynamics, we closely examine market concentration trends as well as the vertical and horizontal integration of upstream and downstream actors (74.8% and 36.3%). The results of applying the TIS framework reveal that poor connectivity in networks, unaligned competitive entities and a lack of market supervision obstruct the development of China's PV industry. Therefore, we maintain that inducement mechanisms are required to instigate learning-by-doing capacities, which may help overcome blocking mechanisms and offset functional innovation deficiencies. In addition, policy implications are proposed for promoting the development of the PV industry in China.
- Blocking/inducement mechanisms
- Functional pattern
- Solar photovoltaic (PV)
- Technological Innovation System (TIS)
ASJC Scopus subject areas
- Renewable Energy, Sustainability and the Environment