Skip to main content

Advertisement

SpringerLink
Log in

Too little, too early: California’s transient advantage in the photovoltaic solar industry

  • Published:
The Journal of Technology Transfer Aims and scope Submit manuscript

Abstract

Throughout its brief history, California has established itself as a national or international leader in key industries—such as aerospace, computing and entertainment—through early mover pre-emption and strong clustering effects. California firms were the initial world leaders in producing photovoltaic (PV) solar cells and dominated the initial aerospace niche market. However, these early efforts failed to create a durable cluster, and when the U.S. market lost interest in renewable energy during the 1990s, California firms were largely surpassed by Japanese, German and Chinese producers that focused on the mass market of using PV to displace fossil fuels for electricity generation. This paper reviews the history of the California PV producers in three phases: aerospace niche markets of the 1950s and 1960s, a brief policy-induced effort at electricity generation in the 1980s, and a twenty first century resurgence fueled by Silicon Valley venture capital. It then discusses why the early entry of the California firms failed to translate to sustained advantage for the firms or the region.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

Notes

  1. A summary of solar hot water and solar thermal power in California from 1900 to 2010 can be found in West (2011).

  2. Company president H. Leslie Hoffman moved to Los Angeles in 1929, and in 1941 “took over a bankrupt Los Angeles radio manufacturing company” (Hoffman 1957: vi).

  3. The manned Gemini and Apollo missions lasted less than two weeks and were powered by fuel cells.

  4. Such a calculation would not include mounting, installation or DC/AC conversion, which today account for about half the price of a completed solar system. Still, recently such a system (fully installed) would cost about $80,000 (Pinkham 2009), about a 20-fold improvement in 50 years.

  5. In contrast to JPL’s $21 million average annual allotment, NSF funding for all US solar research in FY1974 totaled $12 million (Los Angeles Times 1973). However, total Energy Dept. funding for photovoltaic research and other expenditures reached $159 m in FY1980 (Roessner 1982).

  6. PV facilities are customarily measured by their peak total panel (DC) power output, even though 10–20% of that power is lost in the conversion (via an inverter) to AC.

References

  • Asheim, B. T., & Isaksen, A. (2002). Regional innovation systems: The integration of local ‘sticky’ and global ‘ubiquitous’ knowledge. Journal of Technology Transfer, 27(1), 77–86.

    Article  Google Scholar 

  • Bahrami, H., & Evans, S. (1995). Flexible re-cycling and high technology entrepreneurship. California Management Review, 37(2), 62–89.

    Article  Google Scholar 

  • Bailey, S. G., Raffaelle, R., & Emery, K. (2002). Space and terrestrial photovoltaics: Synergy and diversity. Progress in Photovoltaics: Research and Applications, 10(6), 399–406.

    Article  Google Scholar 

  • Barnett, A. M., & Rothwarf, A. (1980). Thin-film solar cells: A unified analysis of their potential. IEEE Transactions on Electron Devices, 27(4), 615–630.

    Article  Google Scholar 

  • Böttcher, M. (2010). Global and local networks in the Solar Energy Industry—The case of the San Francisco Bay Area, Working paper, Network of European and US Regional and Urban Studies. http://www-sre.wu-wien.ac.at/neurus/Boettcher.pdf. Accessed 22 Nov 2012.

  • Colatat, P., Vidican, G & Lester, R. K., et al. (2009). Innovation systems in the solar photovoltaic industry: The role of public research institutions. Mit Industrial Performance Center, working paper MIT-IPC-09-007.

  • Durand, S., & Bowling, B. (1993). Field experience with photovoltaic systems: Ten-year assessment. Technical Report TR-102138. Palo Alto: Electric Power Research Institute.

    Google Scholar 

  • Engel, L. (1954). Harnessing the electron. June: New York Times. 13.

    Google Scholar 

  • Fallick, B., Fleischman, C. A., & Rebitzer, J. B. (2006). Job-hopping in silicon valley: Some evidence concerning the microfoundations of a high-technology cluster. Review of Economics and Statistics, 88(3), 472–481.

    Article  Google Scholar 

  • Francis, J., Bercovitz, J., & Feldman, M. P. (2005). Creating a cluster while building a firm: Entrepreneurs and the formation of industrial clusters. Regional Studies, 39(1), 129–141.

    Article  Google Scholar 

  • French, R.H.; Murray, M.P.; Wei-Chun Lin; Shell, K.A.; Brown, S.A.; Schuetz, M.A.; Davis, R.J. et al (2011). Solar radiation durability of materials components and systems for Low Concentration Photovoltaic Systems. 2011 IEEE Energytech (May), 1–5.

  • Gilson, R. J. (1999). The legal infrastructure of high technology industrial districts: Silicon Valley, Route 128, and covenants not to compete. New York University Law Review, 74(3), 575–629.

    Google Scholar 

  • Giuliani, E. (2007). The selective nature of knowledge networks in clusters: Evidence from the wine industry. Journal of Economic Geography, 7(2), 139–168.

    Article  Google Scholar 

  • Glennan, T. K. (1993). The birth of NASA: The diary of T. Keith Glennan, SP-4105, Washington, DC: National Aeronautics and Space Administration.

  • Goldstein, A. (1985). Spectrolab may soar again with gallium technology. Los Angeles Times, Aug. 6, p. SF 5A.

  • Hargadon, A., & Kenney, M. (2012). Venture capital and clean technology: Opportunities and difficulties. California Management Review, 54(2), 118–139.

    Article  Google Scholar 

  • Hoffman, H. L. (1957). Utilization of advanced production techniques by the electronics industry. IRE Transactions on Production Techniques, 2(1), v–vi.

    Google Scholar 

  • Hubbard, H. M. (1989). Photovoltaics today and tomorrow. Science, 244(4902), 297–304.

    Google Scholar 

  • IEA. 2012. International Energy Agency data services, wds.iea.org, Accessed 22 Nov.

  • Kanellos, M,& Prior, B (2010). Are Solar Thermal Power Plants Doomed? Greentech Media. http://www.greentechmedia.com/articles/read/is-CSP-doomed/. 18 October.

  • Lauck, F. W., & Overbye, V. D. (1963). Novel Power Sources for Shelters. Office of Scientific and Technical Information report #4032343, Milwaukee: A.O. Smith Corporation.

  • Leslie, S. W. (2000). The biggest ‘Angel’ of them all: the Military and the making of Silicon Valley. In M. Kenney (Ed.), Understanding silicon valley (pp. 48–67). Stanford: Stanford University Press.

    Google Scholar 

  • Life. (1955). Fresh face to the sun: International conference assesses progress in solar energy. Nov. 21, 139–142.

  • Los Angeles Times. (1960). Textron Buys Spectrolab of N. Hollywood. Aug. 2, p. 23.

  • Los Angeles Times. (1973). Solar Energy Called Ultimate Solution to Crisis. Sept. 9, p SF A1.

  • Lotker, M. (1991). Barriers to commercialization of large- scale solar electricity: Lessons learned from the Luz experience. Albuquerque, NM: Sandia National Laboratories.

    Book  Google Scholar 

  • Mehta, S. (2010). Will Thin Film Ever Meet Expectations? Seeking Alpha. http://seekingalpha.com/article/196248. 30 Mar.

  • Moll, J. (1993). Oral history conducted by Andrew Goldstein, May 21, 1993. New Brunswick, NJ, USA: IEEE History Center.

    Google Scholar 

  • Morton, O. (2006). Solar energy: Silicon Valley sunrise. Nature (September), pp. 19–22.

  • NASA (1962). Ranger 4 Spacecraft. News release 62–93, April 19.

  • National Research Council. (2000). Renewable power pathways. Washington DC: National Academies Press.

    Google Scholar 

  • New York Times. 1955, Chicago Concern Sold; National Fabricated Products Goes to Hoffman Electronics. July 5, p. 45.

  • Osborne, M. (2011). Chinese bank lending to solar firms dwarfs sector funding in 2010, says Mercom Capital. January: PV-Tech.org. 20.

    Google Scholar 

  • “Our History” (2011). Spectrolab, Inc., http://www.spectrolab.com/history.htm. Accessed 31 Oct.

  • Perlin, J. (2004). The Silicon Solar Cell Turns 50. National Renewable Energy Laboratory. www.nrel.gov/docs/fy04osti/33947.pdf. Accessed 5 Oct 2011.

  • Pinkham, L. (2009). What’s the Average Cost to Install a Solar-Electric System to Power Your Home? Mother Earth News, www.motherearthnews.com. Accessed 1 Nov 2011.

  • Porter, M. E. (1998). Clusters and the new economics of competition (pp. 77–90). Nov-Dec: Harvard Business Review.

    Google Scholar 

  • Quinn, J. (1985). Maverick Using New Technology. Los Angeles Times, April 2, p. V3A.

  • Roberts, B. (2008). Photovoltaic Solar Resource of the United States. National Renewable Energy Laboratory, www.nrel.gov, October 20.

  • Rodgers, TJ (2010) Cypress Startups: History, Theory of Funding, Lessons. Cypress.com, May 13. http://www.cypress.com/?rID=36694.

  • Roessner, J. D. (1982). Government-industry relationships in technology commercialization: The case of photovoltaics. Solar Cells, 5(2), 101–134.

    Article  Google Scholar 

  • Rogers, E. M., & Larsen, J. K. (1984). Silicon Valley fever: Growth of high-technology culture. New York: Basic Books.

    Google Scholar 

  • Saxenian, A. L. (1994). Regional advantage: Culture and competition in silicon valley and route 128. Press, Cambridge: Harvard Univ.

    Google Scholar 

  • Scott, A. J. (1999). The US recorded music industry: On the relations between organization, location, and creativity in the cultural economy. Environment and Planning, 31(11), 1965–1984.

    Article  Google Scholar 

  • Scott, A. J., & Mattingly, D. J. (1989). The Aircraft and parts industry in Southern California: Continuity and change from the inter-war years to the 1990s. Economic Geography, 65(1), 48–71.

    Article  Google Scholar 

  • Shrum, W. (1985). Organized technology: Networks and innovation in technical systems. West Lafayette, Ind: Purdue University Press.

    Google Scholar 

  • Simard, C., & West, J. (2006). Knowledge networks and the geographic locus of innovation. In H. Chesbrough, W. Vanhaverbeke, & J. West (Eds.), Open innovation: Researching a new paradigm (pp. 220–240). Oxford: Oxford University Press.

    Google Scholar 

  • Stimson, T. E, Jr. (1958). The sun is really in business (pp. 57–220). August: Popular Mechanics.

    Google Scholar 

  • Sumner, D. D., Whitaker, C. M., & Schlueter, L. E. (1988). Carrisa plains photovoltaic power plant 1984–1987 performance. In Conference Record of the Twentieth IEEE Photovoltaic Specialists Conference (Vol. 2, pp. 1289–1292). Las Vegas.

  • SustainableBusiness.com (2009). Cleantech Provisions: American Recovery and Reinvestment Act of 2009. www.sustainablebusiness.com/index.cfm/go/news.feature/id/1640 17 Feb.

  • Swanson, R. M. (2000). The promise of concentrators. Progress in Photovoltaics: Research and Applications, 8(1), 93–111.

    Article  Google Scholar 

  • Taylor, M., Nemet, G., Colvin, M., Begley, L., Wadia, C., Dillavou, T. (2007). Government actions and innovation in clean energy technologies: the cases of photovoltaic cells, solar thermal electric power, and solar water heating. California Energy Commission, PIER Energy-Related Environmental Research. CEC-500-2007-012.

  • Time. 1955, Science: Sun Electricity. July 4.

  • Trieb, F., Langniβ, O., & Klaiβ, H. (1997). Solar electricity generation—a comparative view of technologies, costs and environmental impact. Solar Energy, 59(1–3), 89–99.

    Article  Google Scholar 

  • Vartabedian, R. (1993). Defense conversion has few converts so far. Los Angeles Times, Oct. 11, p. 1.

  • Welles, E. O. (1998). Going for broke. Inc., June, pp. 66–78.

  • West, J. (2008). Commercializing open science: Deep space communications as the lead market for shannon theory, 1960–1973. Journal of Management Studies, 45(8), 1506–1532.

    Article  Google Scholar 

  • West, J. (2011). Market, policy and environmental influences on the emergence of California’s Solar Industry, 1900–2010. Paper presented at the 2011 Technology Transfer Conference, Augsburg, Germany, http://ssrn.com/abstract=2010114.

  • Wolf, M. (1961). The present state-of-the-Art of photovoltaic Solar Energy Conversion. Solar Energy, 5(3), 83–94.

    Article  Google Scholar 

  • Wüstenhagen, R., & Bilharz, M. (2006). Green energy market development in Germany: Effective public policy and emerging customer demand. Energy Policy, 34(13), 1681–1696.

    Article  Google Scholar 

Download references

Acknowledgments

Thanks to Steve Casper, David McFeeley and two anonymous reviewers for helpful suggestions. An earlier version of this paper was presented at the 2011 Technology Transfer Conference.

Author information

Authors and Affiliations

  1. School of Applied Life Sciences, KGI—Keck Graduate Institute, Claremont, CA, USA

    Joel West

Authors
  1. Joel West
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Joel West.

Rights and permissions

Reprints and permissions

About this article

Cite this article

West, J. Too little, too early: California’s transient advantage in the photovoltaic solar industry. J Technol Transf 39, 487–501 (2014). https://doi.org/10.1007/s10961-012-9291-6

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10961-012-9291-6

Keywords

JEL Classification

Search

Navigation