How generic and specific regulations differ in their effectiveness regarding renewable energy technology development by SMEs.

Abstract

The aim of this study is to examine the effectiveness of generic and specific regulations with regard to renewable energy technology development by small- and medium enterprises (SMEs) in the Netherlands. The Netherlands Enterprise Agency (NEA) is responsible for these programs. Generic policies focus on the economy as a whole, such as the provision of funds for basic research and development (R&D). Specific policies focus on specific areas, like renewable energy technologies. Within these specific policies the NEA furthermore combines the provision of funds with an active involvement during the development of the project. This study was applied to the Dutch bio energy and solar industry. Using the insights from the resource-based view (RBV), the main hypotheses of this study emphasized a positive influence of the participation in a specific program on the performance of SMEs and a positive influence of the participation in a generic program on the performance of SMEs. The performance of SMEs was indicated by the successful phase transition towards a subsequent phase within the innovation process. Based on data from questionnaires, the main results of this study show that there is a negative influence of participation in a specific program and the successful phase transition of an SME. The results imply for policymakers that they should improve their programs by changing the selection processes. Based on the results they should at least focus on young firms active in the development phases of technology, based on private equity and suffering from too limited external financing, and situated in limited consortia with no commercialization partners.