Research questions and methodology

In order to provide an insightful analysis, the following chapters emphasize important aspects of alternative investments in clean technologies. Each chapter focuses on specific examples of alternative investments into green industries, companies, projects, and infrastructure, covering the developments along the innovation chain. Especially the acceleration of green technologies and the in this context occurring interrelations between the three areas of finance, innovation, and policy are key to this work:

Chapter 2 introduces the topic of investments into clean technologies from a VC viewpoint. It tells the historic emergence of the investment category and develops a life-cycle model for the industry. It thus is a key component to understand the transition towards sustainability (Markard et al., 2012; Penna & Geels, 2012). To analyze the historical events in the development, the chapter uses a longitudinal approach (Da Rin et al., 2011; Elo & Kyngas, 2007; Navis & Glynn, 2010; Wright, Pruthi, & Lockett, 2005). A quantitative and qualitative content analysis of newspaper articles combined with investment data shows technology emergence patterns and detailed information on trending topics (Hoffman, 1999; Kennedy, 2005; McGrath, 1998). The chapter adds a systemic overview over the historic development of the industry evolution to the research debate. It recognized, that the investment category developed according to a venture capital life-cycle model with distinct stages (Avnimelech, Kenney, & Teubal, 2004; Avnimelech & Teubal, 2006). Through the analysis, the historical development and as well the suitability of cleantech VC as an investments category is regarded (Randjelovic, O’Rourke, & Orsato, 2003; Ghosh & Nanda, 2010; Kenney, 2011b; Marcus, Malen, & Ellis, 2013).

The research question chapter 2 answers is as follows:

How does an investment category within venture capital emerge?

Chapter 3 investigates direct and indirect effects of financial policy and innovation- oriented policies in the cleantech area in a cross-country comparison (Borras & Edquist, 2013; Brossard, Lavigne, & Sakinf, 2013a; Flanagan, Uyarra, & Laranja, 2011a; Grilli & Murtinu, 2014; Kenney, 2011b; Revest & Sapio, 2013; Veugelers, 2012b; Wonglimpiyarat, 2011). It uses an exploratory, qualitative study based on interviews in the US and Europe. Interviewees were VC and PE investors, as well as, institutional investors, policy makers and entrepreneurs from the industry (Bewley, 2002; K. Eisenhardt, 1989; Jick, 1979). The chapter contributes to the research debate by incorporating the mobilization of finance for (cleantech) innovation. Adding institutional investors as important actors shaping the conditions for innovation by investing into VC/PE firms it identifies unintended consequences at the intersection between financial sector and innovating firms (Mathews, Kidney, Mallon, & Hughes, 2010a; Mazzucato, 2013a; Mina et al., 2013; Stucki, 2014).

Chapter 3 answers the following research question:

How does the interplay between equity finance and corresponding policy measures influence (cleantech) innovation and entrepreneurship?

Chapter 4 examines the impact of public policy measures on renewable energy (RE) investments in electricity-generating capacity. It thus adds to the debate of how to support the renewable energy transition (Hoppmann et al., 2014; Jacobsson & Bergek, 2004; Markard et al., 2012). Using a novel combination of datasets and conducting a panel data regression, it analyzes effective policy measures to encourage RE investments by institutional investors (Cardenas-Rodriguez, Johnstone, Hascic, Silva, & Ferey, 2013; Marques & Fuinhas, 2012a, 2012b).

The results of this chapter call for technology-specific policies which take into account actual market conditions and position in the technology life cycle.

Chapter 4 answers the following research question:

Which policies have proven (most) conducive to investments in renewable energy assets?

Chapter 5 compares the role of innovation, finance and policy for the development of cleantech industries. Therefore it contributes to the perspective of sustainability transitions and to the industry development changes along the innovation chain (Borras & Edquist, 2013; Brown, 1990; Jacobsson & Bergek, 2011; Wustenhagen & Menichetti, 2012). Explaining the historical development of the solar energy and fuel cell industries, it depicts the peculiarities of green growth. A quantitative content analysis of press articles from US newspapers is used to analyze the different topics during the period from 1995 to 2013 (Aghion et al., 2009; Autio, Kenney, Mustar, Siegel, & Wright, 2014; Geels, 2014; Mazzucato, 2013a; Miller & Garnsey, 2000).

The chapter observes the changing relevance of the specific actors during industry development and compares results of the solar energy to the fuel cell industry. This chapter helps explain the importance of a technology specific and life-cycle adjusted regulatory environment to overcome barriers in the transition to a green economy (Altenburg & Pegels, 2012; Foxon & Pearson, 2008b).

The main research question of chapter 5 is:

What role do innovation, investments and policy play in the development of (cleantech) industries?

Table 1 provides an overview of the articles joined together as chapters of this thesis and provides insights on the corresponding research questions methodological approaches and data sources used:

Table 1 — Overview chapters of dissertation

The uniqueness of this thesis, is based on the multitude of approaches and data foundations used to contribute to the research debate. A mix of qualitative and quantitative research designs is used in the different chapters. Longitudinal and crosssectional studies help to explain complex evolutionary or multi-actor settings. In addition, deploying a vast variety of different data sources prevents from possible biases and enriches the depth of the analysis. Several databases containing financial, policy, and newspaper information have been consulted. Moreover interviews with market participants have been led.