Technological innovation and industrial organization in the Danish wind industry^*

Abstract

The origin of this article is the paradox that heavy US R&D funding to hi-tech aerospace industry in the seventies and eighties was not able to provide an appropriate industrial technology base in wind technology that could match the wind turbines from the much more low-tech Danish machine industry (agricultural sector), which received very limited public R&D funding. Nevertheless, the Danish manufacturers took the lion's share of the world market in the eighties, in casu the California home market for the American producers. A bottom-up learning based development strategy almost completely outperformed a science based top down development strategy for this re-introduced energy technology (top down failures were also seen in the UK, Denmark, W. Germany). The top-down and bottom-up strategies reflect two very different types of de facto entrepreneurial behaviour and industrial organization.