Innovation Systems for Sustainable Energy: The Case of Mexico

Global decarbonization requires a large-scale shift to sustainable energy sources. Innovation will be a key enabler of this global energy transition. Although the energy transition and innovation literatures overwhelmingly focus on the Global North, energy innovation is arguably even more important for the Global South because it can enable them to grow their energy demand and power their development with sustainable resources. This dissertation examines three aspects of energy innovation, focusing on Mexico, to advance the understanding of innovation systems and identify policy levers for accelerating energy innovation in emerging economies. The first project utilizes econometric models to assess patenting drivers for renewable energy (wind and solar) and enabling technologies (energy storage, high voltage direct current technologies, hydrogen technologies, and fuel cells) across 34 countries, including Mexico. The examination of enabling technologies is a particular contribution, since most research on energy innovation focuses on renewable generation technologies. This research finds that policies have differential effects on renewable technologies versus enabling technology, with innovation in enabling technologies lagging behind the deployment of renewable energy. Although renewable energy policies have some spillover effects on enabling technologies, this research suggests that targeted policy instruments for enabling technologies may be needed for global decarbonization. The second and third projects apply the innovation systems framework to understand energy innovation in Mexico. The second project analyzes the sectoral innovation system (SIS) for wind and solar technologies, using expert interviews to evaluate SIS structure and functions systemically. It finds that this innovation system is susceptible to changes in its structure, specifically institutional modifications, and encounters cultural and social aspects that reduce its performance. Further, it finds that non-government organizations and local governments are trying to support the SIS, but their efforts are hampered by low participation from the federal government. The third project studies the technology innovation system (TIS) for green hydrogen, an emerging industrial opportunity for Latin America. It evaluates this TIS's functionality and identifies 22 initiatives to improve its performance by interviewing green hydrogen experts in Mexico. The most important initiatives for strengthening the green hydrogen TIS are information campaigns, policy and regulation (taxes, subsidies, standards, and industrial policies), pilot or demonstration projects, and professional training. Overall, this dissertation contributes to the nexus of energy transition and innovation studies by advancing the understanding of energy innovation in an emerging economy.