The emergence of a growth industry: a comparative analysis of the German, Dutch and Swedish wind turbine industries

Book chapter, 2003

The objective of this paper is to compare the evolution of the wind turbine industry in Germany, the Netherlands and Sweden. Four factors stand out in explaining the relative success of the German industry: (1) creation of variety in an early phase, (2) establishment of legitimacy of wind energy, (3) the employment of advanced market creation policies in a later phase and (4) the use of industrial policy to favour the domestic industry. Implications for policy include fostering legitimacy for the new technology and creating powerful, predictable and persistent economic incentives.