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Based on these findings we discuss the need to establish supranational demand-pull policy schemes in order to address the spillover issue.
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Second, both domestic and foreign demand-pull policies trigger innovative output in a country.
Various studies have shown that technology-push and demand-pull policies induce innovation.
Third, we detect no indication that market growth induced by domestic demand-pull policies leads to more national innovative output than market growth induced by foreign demand-pull policies.
Consequently, demand-pull policies create significant country-level innovation spillovers, which could disincentivize national policymakers to engage in domestic market creation.
Notably, the transition towards a bioeconomy is characterised by a high degree of uncertainty and complexity, making the design of demand-pull policies particularly challenging.
However, technology exploitation activities in first generation technologies are found to be mainly driven by quantity and price-based demand-pull policies.
Our results indicate that the transfer of such technologies into a given country increased significantly after demand-pull policies were put into place, but the same pattern does not hold for supply-push policies.
In this case, inventors of the most important inventions did not respond positively to strong demand-pull policies; filing of highly cited patents declined precipitously just as demand for wind power created a multi-billion dollar market.
It concludes that government activities to promote environmentally enhancing technological development must include both supply-push and demand-pull policies during the period spanning precommercialization, first commercial use, and lead adoption.
Finally, it considers the design of a national renewable finance framework complete with targeted finance push instruments that can complement existing demand pull policies in facilitating investment.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com