Picking a Winner? Innovation in Photovoltaics and the Political Creation of Niche Markets

Innovation theory has pointed to the complex, non-linear character of innovation processes. Heterogeneous networks of actors including a mixed spectrum of many and diverse academic, economic, and governmental agencies combine to achieve innovations. Is there any role for innovation policy beyond influencing framework conditions in such a situation? The article analyzes the case of a successful innova-tion in the energy sector: photovoltaics. It argues that- given the special character-istics of the energy sector – successful innovation depended on strong political support and an advocacy coalition, which achieved institutional backing. The method chosen to realize the innovation was the creation of a niche market with the help of regulatory instruments