Regulatory Impediments to the Commercialization of Stationary Fuel Cells in Ohio: Economic Development Context William M. Bowen Professor, Public Administration.

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Presentation transcript:

Regulatory Impediments to the Commercialization of Stationary Fuel Cells in Ohio: Economic Development Context William M. Bowen Professor, Public Administration and Urban Studies Director, Ph.D. Program in Urban Studies and Public Affairs

Regional Economic Development ► Science base -> basic research -> applied research -> invention -> prototype -> development -> commercialization -> adoption and diffusion -> technological progress -> economic growth and development ► A useful conceptualization, but not the whole story (e.g. exogenous capital investment, migration, non-linearities, feedback)

Two Categories of Impediments to Regional Economic Development ► Upstream: constraints upon science base - > basic research -> applied research -> invention -> prototype -> technological development ► Downstream: constraints upon adoption and diffusion of innovation

Downstream Impediments ► Lack of entrepreneurs ► Lack of supportive social milieu (cultural, institutional and educational system) conducive to entrepreneurship ► Legal framework, incentives, information flows, property rights, contracts, regulations ► Social rules, conventions, and other elements of the structural framework of social interactions

Percent of Industry Adopting Technology Time Initial Innovation The Effect of Downstream Impediments Adoption rate in presence of impediments Adoption rate in absence of impediments

The Current Situation in Ohio ► Ohio is relatively more effective at the upstream aspects of economic development (innovation) than at the downstream (adoption of innovation) ► Nationally, Cleveland ranked much higher in innovations (#10) than in entrepreneurship (#23). Akron ranked #23 in innovations and #34 in entrepreneurship.

Summary ► Ohio aims for industrial leadership in AET – we need to establish markets ► Requires not only investment in R&D but also removal of downstream impediments ► Now is the time ► A regulatory system working perfectly? A system in need of fine tuning? Or a system in need of an overhaul?