Building pro-poor, low carbon innovation systems

through international and indigenous efforts

Rob Byrne, David Ockwell & Adrian Ely

University of Sussex

Corresponding author: R.P.Byrne@sussex.ac.uk

Our Common Future Under Climate Change

Presented in Session 4413a ‘Technology, transformations and capabilities in developing countries’

UPMC Jussieu - ROOM 309 - Block 24/34, 8th July 2015 17.30-19.00

Overview

1. Innovation capabilities and systems

2. Emergence, indigenous efforts and international interactions

3. Evolution of the Kenyan PV innovation system

4. Conclusions and global policy implications

Innovation capabilities and systems – ideas and their implications

Early studies focussed on the systems in place in OECD Countries

Extension to developing country contexts is questionable:

- Developing countries are (more) peripheral in the global economy

- Countries have different histories, socio-cultural contexts

Implication: building innovation systems in developing countries rather

than emulating those in industrialised nations

Emergence, indigenous efforts and international interactions

China’s example provides evidence of:

- Long-term investment in R&D

- National and local incentive structures and policies

- Linkages with private sector

… facilitated through strong state co-ordination

… enhanced by ‘absorption’ of foreign technologies

Kenyan PV market headline facts

• PV based electrical services in Kenya (SHSs and SPLs)

• Per capita = most successful global market for off-grid PV

Installed Solar Home

Systems, 1000s

Source: Ondraczek, J. (2013) “The sun rises in the east (of Africa): A comparison of the development and status of solar energy markets in Kenya and Tanzania”, Energy Policy 56: 409

Kenyan PV market headline facts

• PV based electrical services in Kenya (SHSs and SPLs)

• Per capita = most successful global market for off-grid PV

Market Growth: Solar lantern market grown by more than 200% in the last 3

years – now about 700,000 solar lanterns sold

Market Penetration: Use of solar lighting has increased fourfold from 2% in

2009 to about 8% in 2013

Private Sector: 21 distributors/importers, and over 1500 SMEs, selling solar

lanterns from 17 manufacturers, with 29 quality products locally available

Source: http://lightingafrica.org/where-we-work/kenya/

Building the Kenyan PV innovation system

Summary of Kenyan PV market evolution

• Donor-funding was crucial to development of the PV market

• Private sector largely responsible for its growth

• Both development and growth rely on building:

– Capabilities (knowledge and skills of individuals, organisations, firms)

– Linkages between actors locally and globally

Conclusions

1. Policy must foster capabilities by

− Building networks that link diverse stakeholders

− Conducting market & technological research & monitoring, making results

publicly available

− Raising awareness among consumers & investors to reduce perceived risks &

build shared visions

− Fund experimental initiatives (e.g. new stakeholder configurations to test new

technologies and approaches)

2. National institutions like Climate Innovation Centres could achieve this,

perhaps working with other institutions and actors such as the CTCN

Global climate technology policy Improving the architecture

1. Strengthen NDE capacity by funding national innovation system

builders

2. Dedicated innovation system builders generate relevant knowledge

nationally

3. Innovation system builders coordinate projects & programmes

4. Innovation system builders, via NDEs, communicate national

priorities to CTCN

5. CTCN networks innovation system builders internationally

Find out more: www.steps-centre.org/project/low_carbon_development

References

Jacobson, A. (2007) “Connective Power: Solar Electrification and Social Change in Kenya”, World Development 35(1): 144-162, page

149 for image of solar advert

Lastres , H. M. M. and Cassiolato, J. E. (unpublished) Systems of innovation and development from a South American perspective: a

contribution to Globelics, accessed from http://www.ie.ufrj.br/redesist/Globelics/LasCas%20globelics.pdf

Ondraczek, J. (2013) “The sun rises in the east (of Africa): A comparison of the development and status of solar energy markets in

Kenya and Tanzania”, Energy Policy 56: 407-417

Tyfield, D., Ely, A. and Geall, S. (2015) Low carbon innovation in China: from overlooked opportunities and challenges to transitions in

power relations and practices, forthcoming in Sustainable Development