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Why and how to subsidise energy R+D : lessons from the collapse and recovery of electricity innovation in the UK.

Jamasb, T. and Pollitt, M.G. (2015) 'Why and how to subsidise energy R+D : lessons from the collapse and recovery of electricity innovation in the UK.', Energy Policy., 83 . pp. 197-205.


The UK electricity sector liberalisation was a pioneer in the worldwide reform trend and its reform model and outcomes have been the subject of many studies. However, lesser known are the effects of privatisation, market based reforms, and incentive regulation of networks on research and development as well as patenting activities in the sector. This paper updates our previous studies of this subject and discusses the recent developments in the innovative activities in the UK electricity sector. We find that, in recent years, the initial absence of support policies and the subsequent decline in innovation efforts in the aftermath of the reform has resulted in efforts towards forming an energy technology and innovation policy. Although we already observe some positive outcomes from these efforts, we discuss whether the balance of the innovation efforts are calibrated appropriately and whether the institutional framework can be further improved to promote long term progress.

Item Type:Article
Keywords:Energy technology, Innovation, Liberalisation, Research and development.
Full text:(AM) Accepted Manuscript
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Publisher statement:NOTICE: this is the author’s version of a work that was accepted for publication in Energy Policy. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Energy Policy, 83, August 2015, 10.1016/j.enpol.2015.01.041.
Date accepted:29 January 2015
Date deposited:26 May 2015
Date of first online publication:August 2015
Date first made open access:26 February 2016

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