Functional definitions

The definition of each of the seven natural groupings applied in this work is set out below, followed by a list of the unique functions identified in Bergek et al.’s [139] review which map to that natural grouping.

It is immediately clear that these the groupings overlap, both in terms of the activities which contribute to the success of each function, and temporally, where multiple functions may be active in a transition at any time. These functions overlap both in scope and temporally. The temporal relationships of functions are explored in Section 5.9.2, in the light of the research interviews.

4.2.1 F1 – Entrepreneurial activities

Entrepreneurial activities comprise the activities which enable the early stages of a transition to take effect. They may be undertaken by new participants in the sector or involve diversification activities undertaken by existing participants. They can include R&D activities (which may overlap into F2- Knowledge development) and/or market validation and awareness building (which may run into F5 – Market formation or F7 – Legitimation).

Entrepreneurial experimentation Recognise the potential for growth Stimulate market formation

Incubate to provide facilities, etc.

Promoting entrepreneurial experiments

Creating and changing organizations needed (e.g. enhancing entrepreneurship) Articulation of demand

Incubation activities

Table 4-3: Functions within F1 - Entrepreneurial activities (author's analysis)

4.2.2 F2 - Knowledge development

Knowledge development comprises research and development activities, which improve the technology itself, or the value of applying the technology, through

innovations in ancillary technologies (eg installation of offshore wind turbines), funding strategies, risk management strategies or other improvements.

It can be undertaken by research bodies, such as universities or support organisations (such as the Offshore Renewable Energy Catapult), by industry participants directly or by joint industry projects funded by industry participants and coordinated by support organisations (such as the Carbon Trust’s Offshore Wind Accelerator programme).

Knowledge development Identify problems

Create human capital

Create technological opportunities

Create products (materials, parts, compl. products) Create new knowledge

Create knowledge

Creating a knowledge base

Provision of R&D, competence building Creation of technological knowledge

Table 4-4: Functions within F2 - Knowledge development (author's analysis)

4.2.3 F3 - Knowledge diffusion and networking

Knowledge diffusion and networking comprises the exchange of information among stakeholders to the transition. It can include both formal information sharing efforts, such as Government dialogue with trade associations to better define policy choices, and informal diffusion of knowledge, such as happens when employees move employer.

Knowledge diffusion

Facilitate information and knowledge exchange Facilitate information and knowledge exchange Diffuse technological opportunities

Diffuse market knowledge.

Enhance networking

Diffuse products (materials, parts, compl. products) Networking

Diffusion of scientific culture

Exchange of information through networks

Table 4-5: Functions within F3 - Knowledge diffusion and networking (author's analysis)

4.2.4 F4 – Guidance of the search, including creation of incentives

Guidance of the search is centred on policy design, at international, national, subnational, regional and local levels, and considers regulatory development aimed at enabling a transition (such as Strategic Environmental Assessments for offshore wind development areas and development of standards), and explicitly includes the creation of incentives as policy instruments (which could equally be considered F5 – Market formation).

Influence on the direction of search Guide the direction of search

Direct technology, market and partner search

Facilitate regulation (may enlarge market and enhance market access) Guide the direction of the search process

Prioritizing of public and private sources (the process of selection)

Creating/changing institutions that provide incentives or obstacles to innovation Professional coordination

Design and implementation of institutions.

Provide incentives for entry Creating incentives

Creating/changing institutions that provide incentives or obstacles to innovation

Table 4-6: Functions within F4 - Guidance of the search, including creation of incentives (author's analysis)

4.2.5 F5 – Market formation

Market formation comprises the activities of ensuring that there is a viable demand for the transition being considered. In the case of offshore wind, it is clear that the overall electricity market is broad and deep enough to accommodate any generating technology, at least up to a level of generation, as long as it is commercially viable. As penetration grows, consideration of grid stability, management of intermittency and other factors specifically bearing on offshore wind and marine renewables become part of the market formation function.

Market formation Create market

Facilitate the formation of markets

Creating markets or appropriate market conditions Articulation of quality requirements (demand side) Formation of new product markets

Articulation of quality requirements (demand side) Regulation and formation of markets

Articulation of demand

Table 4-7: Functions within F5 - Market formation (author's analysis)

4.2.6 F6 – Resource mobilisation

Resource mobilisation describes the function of allocation of people, resources, equipment and funding to enable the maturation of the TIS.

F6 – Resource mobilisation is closely related to F1 – Entrepreneurial activities, in that both are concerned with the allocation of necessary resources. The key difference is that F1 is concerned with those activities which typically take place at the early stage of the TIS niche breakout, in the form of invention and innovation, early fund raising, market creation and legitimation, while F6 - Resource mobilisation is much more “business as usual” and addresses the allocation of conventional resources to deliver the upscaling of a transitional technology.

Resource mobilization Supply resources Facilitate financing Create a labour market

Creating resources (financial and human capital) Financing of innovation processes, etc

Provision of consultancy services

Supply of scientific and technical services Supply of resources for innovation

Table 4-8: Functions within F6 - Resource mobilisation (author's analysis)

4.2.7 F7 – Legitimation

The function of “Legitimation” is rooted in Bergek et al.’s definition of a function comprising “the development of positive external economies” [92]. However, even Bergek and her co-authors seem to be half-hearted in their commitment to this function. While they accept that renowned researcher and writer Michael Porter describes positive externalities as “central to the formation of innovation systems”, they note that the processes by which these positive externalities emerge are “not independent of other functions but works through strengthening the other six functions” [92].

Hekkert et al.’s [95]wider definition of a function of legitimation, includes the creation of positive externalities with the broader factors of building societal support and counteracting resistance to change. This broader legitimation function is a common feature of many of the authors reviewed and is seen as an important aspect of a successful TIS. In MLP terms, the legitimation function can contribute to regime destabilisation, by building the case for new technologies or against incumbent technologies, and can influence the landscape, by again making the case for the transition.

Development of positive external economies Legitimation

Counteract resistance to change Legitimize technology and firms

Facilitate the creation of positive external economies Promoting positive externalities, or ‘free utilities’

Development of advocacy coalitions for processes of change

Table 4-9: Functions within F7 - Legitimation (author's analysis)