Market Formation in Technological Innovation Systems—Diffusion of Photovoltaic Applications in Germany

The technological innovation systems (TIS) literature has focused strongly on actors, networks and institutions in early development phases of specific technologies. Structures and processes concerned with setting up and developing end-user markets have gained much less attention. Especially in maturing innovation systems, such market-related structures play a decisive role for the long-term success of innovations. The present paper proposes a conceptual framework for analyzing TIS substructures oriented at specific end-user markets. We apply this framework to the creation and maturation of different market segments for photovoltaic applications in Germany. The paper concludes by outlining implications of a more differentiated conceptualization of market processes for TIS research.