Managing Environmental Innovation in the Energy Sector: The Case of Photovoltaic and Wave Power Development in Norway

This article analyses key characteristics pertaining to the evolution of nascent technologies and enterprises. More specifically, we analyse the development of two new renewable energy technologies — solar photovoltaic (PV) and wave power (WP) — within the Norwegian energy sector. There are mainly two reasons for selecting these technologies. First, they may facilitate the transition to more sustainable energy supplies. Second, they display strikingly different development dynamics, from which important lessons can be learned for the management of innovation in the energy sector. The main causes of the Norwegian PV industry's success are its ability to exploit a global niche market, and the effective matching of technological capabilities with market opportunities into strategies for learning and legitimacy. The constrained development of WP technology, on the other hand, is not only attributed to technical difficulties, but also to the lack of niche markets, research rivalry, decreasing public support, and insufficient organisational capacity.