Skip to main content

Advertisement

SpringerLink
Log in

Overcoming latecomer disadvantage through learning processes: Taiwan’s venture into wind power development

  • Published:
Environment, Development and Sustainability Aims and scope Submit manuscript

Abstract

Research into national innovation systems (NISs) has received extensive academic and policy attention, and is especially relevant with latecomer countries seeking to innovate in challenging industrial environments. In playing catch up with their early industrializing counterparts, methods of learning take on increased importance in determining industrial success for latecomers. The wind turbine technology innovation system is one that is highly dependent on both the extent of the national learning processes and the strength of the national social-institutional setting. This research investigates the case of Taiwan, a country which has embarked on a program to build its national innovative capacity in wind turbine technologies with specific emphasis on Taiwan’s social sector. Within this system, the spotlight will be on four types of learning processes that interplay during wind turbine development: learning by searching, learning by doing, learning by using, and learning by interacting. Through a case study of the emergence of Taiwan’s burgeoning large-scale wind power technology initiatives, the paper aims to add to the understanding on how methods of learning impact upon the success of innovation systems. The findings show that the industry’s future prospects are constrained because of the limited learning by interacting processes between turbine component producers, turbine owners, and researchers and because of weaknesses in the institutional framework. This research also recognizes the importance that culture has on dominant forms of learning.

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
Fig. 2

Similar content being viewed by others

Notes

  1. Fuller (2008).

  2. Dodgson et al. (2008).

  3. China Post News Staff. China investments in Taiwan to begin in 6 months, China Post. Accessed July 21, 2009 from http://www.chinapost.com.tw/taiwan/china-taiwan-relations/2009/04/27/205782/Chinainvestments.htm, May 17, 2009. CCTV. Taiwan to allow more mainland investment. Accessed July 21, 2009 from http://www.cctv.com/program/bizchina/20090513/102365.shtml, May 13, 2009.

  4. Cleantech.com News Staff China, Taiwan team up to boost LEDs, China Post. Accessed July 21, 2009 from http://www.cleantech.com/news/4408/china-taiwan-team-boost-leds, April 28, 2009.

  5. Yeh, H. C. Renewable Energy Policy in Taiwan. Presented at 2007 World Renewable Energy Conference—Pacific Region at National Taiwan University, Taipei, Taiwan, October 31, 2007. Personal communication with Lihkang Industrial Co., Ltd., 2008. Personal communication with ITRI engineer from the Wind Energy Equipment Technology Department, 2008.

  6. Personal communication with TwnWEA official, 2008.

  7. Central News Agency. New group to promote wind energy technology. Taipei Times. Accessed July 21, 2009 from http://www.taipeitimes.com/News/biz/archives/2006/01/11/2003288518, January 11, 2006.

  8. Personal communication with BOE official, 2008.

  9. Personal communication with ITRI engineer, 2008.

  10. Yeh, H. C. (2007, October 31). Renewable Energy Policy in Taiwan Presented at 2007 World Renewable Energy Conference – Pacific Rim Region at National Taiwan University, Taipei, Taiwan, October 31, 2007. Personal communication with ITRI engineer, 2008.

  11. The MIRDC recently announced an alliance between three of Taiwan’s top engineering companies that would result in the first fully-assembled 2.5 MW wind turbine within 4 years (Han, N. K., Research alliance in Taiwan to develop large wind turbines, Accessed July 21, 2009 from http://english.cna.com.tw/ReadNews/Eng_TopNews.aspx?ID=200903300022. March 30, 2009).

    A licencing joint venture formed between American Superconductor and Taiwanese wind turbine component manufacturer, TECO, to develop both offshore wind turbine components and the rights for TECO to manufacture and sell the 2 MW FC-2000 wind turbine in Taiwanese and Chinese wind supply markets (Cleantech Group. American Superconductor, Teco in wind turbine deal, Accessed July 21, 2009 from http://cleantech.com/news/2942/american-superconductorteco-in-wind-turbine-deal. June 9, 2008).

  12. Taiwan Power Company wind contracts require 30% of a turbine’s total costs to be sourced locally. IPP contracts lack such wording. Personal communication with Taiwan Power Company official, 2008.

  13. These domestic market share numbers are all understated to varying degrees because manufacturers with smaller sales volumes were not identified.

  14. Newly installed capacities in the supply markets of China (6253 MW) and Spain (1608 MW) for 2008 are 208% and 54% of the overall supply target set for Taiwan (3000 MW) to be cumulatively reached by 2025. Information supplied by ITRI official, 2008.

  15. Huang, J. InfraVest threatens to leave if ‘green bills’ not passed. Taipei Times. Accessed July 21, 2009 from http://www.taipeitimes.com/News/biz/archives/2009/04/14/2003441028, April 14, 2009.

  16. Personal communications with InfraVest official, 2007. Personal communication with Taipower wind farm subcontractor, 2008.

  17. Personal communication with Taipower official, 2008.

  18. Information supplied by ITRI official, 2008.

References

  • Agterbosch, S., Vermeulen, W., & Glasbergen, P. (2004). Implementation of wind energy in the Netherlands: The importance of the social-institutional setting. Energy Policy, 32, 2049–2066.

    Article  Google Scholar 

  • Akamatsu, K. (1962). A historical pattern of economic growth in developing countries. The Developing Economies, 1, 3–25.

    Google Scholar 

  • Amsden, A. (1991). Diffusion of development: The late-industrializing model and greater East Asia. The American Economic Review, 81(2), 282–286.

    Google Scholar 

  • Anderson, D. (2006). The influence of culture on learning styles. Doctoral dissertation, Capella University.

  • Arnold, W. (1989). Bureaucratic politics, state capacity, and Taiwan’s automobile industrial policy. Modern China, 15(2), 178–214.

    Article  Google Scholar 

  • Bain, J. S. (1956). Barriers to new competition. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Bell, M., & Pavitt, K. (1995). The development of technological capabilities. In I. Haque (Ed.), Trade, technology, and international competitiveness (pp. 69–101). Washington, DC: The World Bank.

    Google Scholar 

  • Breukers, S., & Wolsink, M. (2007). Wind energy policies in the Netherlands: Institutional capacity-building for ecological modernisation. Environmental Politics, 16(1), 92–112.

    Article  Google Scholar 

  • Buen, J. (2006). Danish and Norweigan wind industry: The relationship between policy instruments, innovation and diffusion. Energy Policy, 34, 3887–3897.

    Article  Google Scholar 

  • Bureau of Energy (2009). Energy briefing: Sustainable development of renewable energy. Accessed 29 July 2009 from http://210.69.152.10/About/webpage/book_en1/index.htm.

  • Chen, T. J., & Ku, Y. H. (1999). Second-stage import substitution: The Taiwan experience. In G. Ranis, S. C. Hu, & Y. P. Chu (Eds.), Essays in memory of John C. H. Fei. Volume 2. The political economy of Taiwan’s development in the twenty-first century (pp. 79–107). Cheltenham, UK: Elgar.

    Google Scholar 

  • Chuang, Y. C. (1999). The role of human capital in economic development: Evidence from Taiwan. Asian Economic Journal, 13(2), 117–144.

    Article  Google Scholar 

  • Dinica, V. (2006). Support systems for the diffusuion of renewable energy technologies—An investor perspective. Energy Policy, 34, 461–480.

    Article  Google Scholar 

  • Dodgson, M., Mathews, J., Kastelle, T., & Hu, M. C. (2008). The evolving nature of Taiwan’s national innovation system: The case of biotechnology innovation networks. Research Policy, 37, 430–445.

    Article  Google Scholar 

  • Dutrènit, G. (2004). Building TC in latecomer firms: Review essay. Science, Technology, and Society, 9(2), 209–241.

    Article  Google Scholar 

  • Fuller, D. (2008). The cross-strait economic relationship’s impact on development in Taiwan and China: Adversaries and partners. Asian Survey, 48(2), 239–264.

    Article  Google Scholar 

  • Gerschenkron, A. (1962). Economic backwardness in historical perspective. Cambridge, MA: The Belknap Press of Harvard University Press.

    Google Scholar 

  • Hu, M. C., & Mathews, J. (2005). National innovative capacity in East Asia. Research Policy, 34, 1322–1349.

    Article  Google Scholar 

  • Hu, M. C., & Tseng, C. Y. (2007). Technological interdependence and knowledge diffusion in the building of national innovative capacity: The role of Taiwan’s chemical industry. Technological Forecasting & Social Change, 74, 298–312.

    Article  Google Scholar 

  • Huang, Y. H., & Wu, J. H. (2007). Technological system and renewable energy policy: A case study of solar photovoltaic in Taiwan. Renewable and Sustainable Energy Reviews, 11, 345–356.

    Article  CAS  Google Scholar 

  • Industry Canada. (2007). Opportunities for Canadian stakeholders in the North American large wind turbine supply chain; September 5th, 2007 report. Retrieved August 1, 2008 from Industry Canada web site: http://www.ic.gc.ca/epic/site/rei-ier.nsf/en/h_nz00017e.html.

  • Jacobsson, S., & Johnson, A. (2000). The diffusion of renewable energy technology: An analytical framework and key issues for research. Energy Policy, 28, 625–640.

    Article  Google Scholar 

  • Kamp, L. M., Smits, E. H. M., & Andriesse, C. D. (2004). Notions on learning applied to wind turbine development in the Netherlands and Denmark. Energy Policy, 32, 1625–1637.

    Article  Google Scholar 

  • Koenemann, D. (2009). Competition is growing. Sun & Wind Energy, 6, 112–115.

    Google Scholar 

  • Langniss, O., & Neij, L. (2004). National and international learning with wind power. Energy & Environment, 15(2), 175–185.

    Article  Google Scholar 

  • Lauber, V. (2004). REFIT and RPS: Options for a harmonised community framework. Energy Policy, 32, 1405–1414.

    Article  Google Scholar 

  • Lewis, J. (2007). A comparison of wind power industry development strategies in Spain, India, and China. Center for Resource Solutions: San Francisco. Retrieved May 22, 2008 from http://www.greenpeace.org/raw/content/china/en/press/reports/wind-power-report.pdf.

  • Lewis, J., & Wiser, R. (2007). Fostering a renewable energy technology industry: An international comparison of wind industry policy support mechanisms. Energy Policy, 35, 1844–1857.

    Article  Google Scholar 

  • Lin, C. J., Yu, O. S., Chang, C. L., Liu, Y. H., Chuang, Y. F., & Lin, Y. L. (2009). Challenges of wind farms connection to future power systems in Taiwan. Renewable Energy, 34, 1926–1930.

    Article  Google Scholar 

  • Liu, S. J. (1998). Industrial development and structural adaptation in Taiwan: Some issues of learned entrepreneurship. IEEE Transactions on Engineering Management, 45(4), 338–348.

    Article  Google Scholar 

  • Lundvall, B. A. (1992). National systems of innovation—Towards a theory of innovation and interactive learning. London: Pinter.

    Google Scholar 

  • MacLaughlin, D. (2008). Overcoming latecomer disadvantage: The case of Taiwan’s wind manufacturing industry. Masters dissertation, University of Waterloo, Canada, 2008.

  • Mathews, J. A. (2005). Strategy and the crystal cycle. California Management Review, 47(2), 6–32.

    Google Scholar 

  • Mathews, J. A. (2006). Catch-up strategies and the latecomer effect in industrial development. New Political Economy, 11(3), 313–335.

    Article  Google Scholar 

  • Mathews, J. A. (2007). Latecomer strategies for catching-up: the cases of renewable energies for the LED programme. International Journal of Technological Learning, Innovation and Development, 1(1), 34–42.

    Article  Google Scholar 

  • Miketa, A., & Schrattenholzer, L. (2004). Experiments with a methodology to model the role of R&D expenditures in energy technology learning processes; first results. Energy Policy, 32, 1679–1692.

    Article  Google Scholar 

  • MIRDC. (2005). MIRDC assists government to nurture wind power industry. Accessed June 1, 2008 from http://www.mirdc.org.tw/english/index.htm.

  • MIRDC. (2005). MIRDC sets up Wind Turbine Industry Alliance to establish complete supply chain and certification & test mechanism. Accessed June 1, 2008 from http://www.mirdc.org.tw/english/index.htm.

  • Mitchell, C. (2000). The England and Wales non-fossil fuel obligation: History and lessons. Annual Review Energy Environment, 25, 285–312.

    Article  Google Scholar 

  • OECD. (2000). Knowledge-based industries in Asia. Paris: OECD.

    Google Scholar 

  • Ouyang, H. W. (2006). Agency problem, institutions, and technology policy: Explaining Taiwan’s semiconductor industry development. Research Policy, 35, 1314–1328.

    Article  Google Scholar 

  • Putnam, R. D. (1995). Bowling alone: America’s declining social capital. The Journal of Democracy, 6(1), 65–78.

    Article  Google Scholar 

  • Rosenberg, N. (1982). Inside the black box: Technology and economics. Cambridge: Cambridge University Press.

    Google Scholar 

  • Rycroft, R. W. (2007). Does cooperation absorb complexity? Innovation networks and the speed and spread of complex technological innovation. Technological Forecasting & Social Change, 74, 565–578.

    Article  Google Scholar 

  • Szarka, J. (2006). Wind power, policy learning and paradigm change. Energy Policy, 34, 3041–3048.

    Article  Google Scholar 

  • Tzeng, C. H. (2008). Developing high-technology latecomer firms to compete internationally: A three-sector growth model. Journal of International Management, 14, 190–206.

    Article  Google Scholar 

  • Wade, R. (1990). Governing the market, economic theory and the role of government in East Asian industrialization. Princeton: Princeton University Press.

    Google Scholar 

  • World Wind Energy Association. (2009). World wind energy report 2008. Accessed May 18, 2009 from http://www.wwindea.org/home/images/stories/worldwindenergyreport2008_s.pdf.

  • Wu, Y. (2004). Rethinking the Taiwanese developmental state. The China Quarterly, 177, 91–114.

    Article  Google Scholar 

  • Wu, H. L. (2007). Road to industrial upgrading: policy design and implementation for encouraging industrial innovation in Taiwan. International Journal Public Policy, 2(1/2), 140–162.

    Article  Google Scholar 

  • Yang, T. H. (2007). Social factors, transaction costs and industrial organization: A comparison between South Korea and Taiwan. International Sociology, 22(4), 435–461.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. University of Waterloo, Waterloo, Ontario, Canada

    David MacLaughlin & Steffanie Scott

Authors
  1. David MacLaughlin
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Steffanie Scott
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to David MacLaughlin.

Additional information

Readers should send their comments on this paper to: BhaskarNath@aol.com within 3 months of publication of this issue.

Rights and permissions

Reprints and permissions

About this article

Cite this article

MacLaughlin, D., Scott, S. Overcoming latecomer disadvantage through learning processes: Taiwan’s venture into wind power development. Environ Dev Sustain 12, 389–406 (2010). https://doi.org/10.1007/s10668-009-9202-7

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10668-009-9202-7

Keywords

Search

Navigation