WHAT ARE THE INNOVATION EFFECTS OF PILOT AND DEMONSTRATION PLANTS? THE CASE OF ADVANCED BIOFUELS IN THE TRANSPORT SECTOR

摘要

Pilot and demonstration plants (PDPs) may be important for fostering technological innovation. Theyrnconstitute a bridge between basic knowledge generation and technological breakthroughs on the one hand, andrnindustrial application and commercial adoption of new technology on the other. The aim of this paper is to examinernthe innovation impacts of publicly funded PDP activities in the empirical context of production technology forrnadvanced biofuels. The study is conducted by employing patent data for eight European countries over the timernperiod 1980-2011, and it is acknowledged that PDPs have two main objectives: testing and optimization ofrntechnology (experimental PDPs), and diffusion and commercialization of technology (exemplary PDPs). The resultsrnare overall robust to alternative model specifications, and indicate that: (a) PDP activities are overall positivelyrncorrelated with biofuel patenting activity; (b) both experimental and exemplary PDPs encourage biofuel innovationrnalthough the impact of the former is more profound; and (c) development activities in experimental PDPs encouragerninnovation also indirectly through knowledge spillovers across countries.