1 International Knowledge Spillovers in the Wind Power Industry – Evidence from Europe Jonas A Grafstrom Luleå University of Technology Financial support from the Söderberg Foundation and the Swedish Research Council Formas is gratefully acknowledged.

Knowledge Spillovers Spillover has its origins in 1890, where the English economist Alfred Marshall developed a theory of knowledge spillovers. Knowledge spillovers later were extended by economists Kenneth Arrow (1962) and Paul Romer (1986). A knowledge spillover is a non-rival knowledge market externality that has a spillover effect of stimulating technological improvements in a neighbor through one's own innovation. Problem: When there are knowledge spillovers firms (and possibly counties) tend to underinvest in R&D since the full value cannot be kept

3 Background and purpose 1(3) Global energy demand has risen with an increasing rate in the past decade and is predicted to continue do so. World energy consumption Source: IEA energy outlook 2013

4 Background and purpose 2(3) Renewable energy can be a solution where the increased energy demand are meet with an increased supply of renewables. Previous research indicates that the cost of renewable energy falls as the usage of technology expands. Source: annual reportshttp://

5 Background and purpose 3(3) Less is however known about to what extent renewable energy technology knowledge spills over from the original source to new geographic areas. The purpose is to analyze the effect invention efforts and policies have on the rate of inventions in neighboring countries wind power technology production. Inventions refers to a unique or novel device, method, composition or process.

6 Approach 1(3) Patent count to measure inventions. Focus on accumulation of knowledge stocks in neighboring countries. Patents granted at the European Patent Office. 8 core wind power countries in Western Europe countries between 1978 and 2008.

F03D Source: Correspondentens with Peter Keefe Patent Examiner Patent Informatics Analyst. UK Patent office. F03D- Wind Motors This subclass covers wind motors, i.e. mechanisms for converting the energy of natural wind into useful mechanical power, and the transmission of such power to its point of use.

8 Development of wind patent activity Number of patents in wind power technology field F03D between 1978 and 2008 for sample countries Source: OECD (2011).

9 Approach 2(3)

10 Approach 3(3)

11 Econometric Results The results suggests that:  There seems to be no cross border knowledge spillovers between the countries in the dataset. (A weak negative effect was found)  Did not change after distance weight.  Similar results were obtained for the related industry stock.  Public R&D schemes are invention promoting.  The number of researchers in the labor force are invention promoting.

12 Conclusion A large development effort in one country does not seem to spill over on the other countries. Most European countries does not stand on the shoulders of giants – they rather look at the giants. Building up know-how helps to do further research. Need to further investigate if it is the case that some countries take a non-research strategy, and is that a problem?

13 Contact information Jonas Grafström Luleå University of Technology Economics Unit SE Luleå, Sweden Thank you very much for your attention

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15 FieldIPC ClassesExcept for wind technology IPC Class Energy machinery B23F, F01B, F01C, F01D, F03B, F03C, F03D, F03G, F04B, F04C, F04D, F15B, F16C, F16D, F16F, F16H, F16K, F16M, F23R F03D