We address this gap and develop a typology that distinguishes four types of technologies that require different types of capabilities, and we do so by combining insights into technology transfer and industry catch-up with insights into patterns of innovation across the technology life cycle. We apply this typology to the case of low emission development strategies and low carbon technologies such as hydropower, electric vehicles, and solar cells, in order to analyze capacity requirements, innovation patterns, and the impact of past deployment policies on industry localization.
“Green growth” strategies, which aim to decouple economic development from
harmful environmental impacts, have become a new paradigm for policymakers in developing countries. Many green growth strategies are based on instruments designed to stimulate the local deployment of relatively mature clean technologies and aim to foster the formation of a local industry to develop and produce these technologies.
We argue that it serves as a starting point for policymakers aiming to localize clean technology industries through potential green growth strategies in developing countries of different income levels and international institutions that support green growth. We argue that differences across technologies in the capabilities involved in the innovation process can help explain variation in the localization effects of clean technology diffusion policies on successful industry localization. They serve as a starting point for technology selection and policy design of different types in different countries.