This paper analyses the development and diffusion of technologies that utilize renewable energy sources in Germany, Sweden and the Netherlands.The analysis enlarges the life cycle model of industry evolution to one where the focus is on the formation and evolution of new technological systems. Particular focus is on explaining success and failures in shifting from a formative phase into one characterized by positive feedbacks. A set of challenges is identified for policy makers attempting to influence the process of transforming the energy sector.
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Staffan Jacobsson (2004) studied this question.