The Impact of the Regulatory Reform Process on the R&amp;D Investment of European Electricity Utilities

Schmitt, Stephan; Kucsera, Dénes

doi:10.1515/rne-2012-0021

Cited by 7 publications

(6 citation statements)

References 37 publications

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“…Therefore, industry-wide cooperation has collapsed, economic issues have gained a central role, projects with shorter payback periods are preferred and customer-oriented product innovations have flourished [18]. Moreover, several authors have consistently confirmed a significant reduction in sectoral R&D investments in different jurisdictions after liberalization experiences [19][20][21][22][23][24][25][26]. However, very little is known about how utilities accomplish their innovation strategies at the firm level in a liberalized environment; i.e., which activities (inputs) are needed to generate innovations (outputs).…”

Section: Internal Determinants Of Innovationmentioning

confidence: 99%

Utilities: Innovation and Sustainability

et al. 2019

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Pro-market reforms have disrupted the playing field and strongly affected the innovative behavior of electricity, gas and water utilities. Beyond a significant reduction in sectoral R&D investments, very little is known about how these firms accomplish their innovation strategies in this new scenario. Given this gap in the literature, the first aim of this paper is to identify the internal determinants of both the product and process innovation of utilities in a liberalized environment. Additionally, there is another external force that is also disrupting the specific landscape of utilities: the sustainability challenge. Therefore, the second aim of this paper is establishing whether sustainability-orientation is a driver of innovation in the utilities industries. The empirical study is carried out on a panel of 82 Spanish electricity, gas and water utilities over the period 2005–2012 (Technological Innovation Panel dataset (PITEC)). The main findings are: (i) the acquisition of disembodied knowledge does not play a relevant role for utilities; (ii) non-formal search processes are central to product innovation; (iii) some markets for technology –external R&D and technology embedded in equipment—are determinant factors for process innovation; (iv) sustainability orientation increases the likelihood of generating both, product and process innovations. These firm-level results are novel contributions to the field of utility management.

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Section: Internal Determinants Of Innovationmentioning

confidence: 99%

Utilities: Innovation and Sustainability

et al. 2019

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“…Indeed, the European Union has already put vertical disintegration of the high-voltage transmission grid into practice (starting with to the EU directive 1996/92/EC; Schmitt and Kucera, 2013). While the empirical literature in general finds considerable cost savings from vertical economies for US electricity utilities, limited empirical literature on single-country studies points toward modest cost savings in Europe.…”

Section: Introductionmentioning

confidence: 99%

Vertical disintegration in the European electricity sector: Empirical evidence on lost synergies

Gugler

Liebensteiner

Schmitt³

2017

International Journal of Industrial Organization

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“…Ref. [26] analyzed the rate of change in the R&D investment for large-scale power generation and transmission facilities in eight European Union (EU) countries, and concluded that both privatization and regulatory reform decrease R&D investment. Furthermore, in order to find the contribution of reform to environmental protection, Ref.…”

Section: Overall Effects Of Market Reform On Electric Power Industrymentioning

confidence: 99%

Effects of Market Reform on Facility Investment in Electric Power Industry: Panel Data Analysis of 27 Countries

et al. 2018

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In this study, we analyzed the effects of electricity market reform on investment in generation facilities. We used the data of 27 OECD member countries and considered ownership structure, horizontal and vertical unbundling, change of transaction method, and government regulation as explanatory variables for market reform. We used four regression models, in which we examined the effects of market reform on the capacity of generation facilities, supply reserve ratio, total investment, and base-load share, respectively. For each panel regression model, we performed a Hausman test to identify the model between random effect and fixed effect. Based on the estimation results, we found that electricity market reform has a negative effect on generation facilities in most countries. Both privatization and regulation have negative impacts on the generation facility and base-load share. On the other hand, the level of liberalization of transactions have positive effects on the generation facility, supply reserve ratio, and base-load share. The empirical analysis also showed that horizontal unbundling does not have a meaningful effect on investment, but vertical unbundling contributes to increasing the supply reserve ratio.

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The Impact of the Regulatory Reform Process on the R&D Investment of European Electricity Utilities

Cited by 7 publications

References 37 publications

Utilities: Innovation and Sustainability

Utilities: Innovation and Sustainability

Vertical disintegration in the European electricity sector: Empirical evidence on lost synergies

Effects of Market Reform on Facility Investment in Electric Power Industry: Panel Data Analysis of 27 Countries

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