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The major objective of this study is to provide an analytical tool to identify the role of investment on innovation in the process of new technologies development. To achieve this goal, a model of knowledge flow is developed and the effects of national and international knowledge spillovers are investigated. Results show that when knowledge spillovers are modelled in the Nordic countries, the required investment on domestic energy R&D decreases and the cumulative knowledge increases to 10.7 billion USD by 2030. This is a significant economic potential for technological innovation which can be considered for both energy researchers and energy planners. Finally, some important policy insights... 

In this paper the process of knowledge accumulation for a particular technology is studied. Two countries, say the technology follower and the technology frontier, are considered. The frontier's knowledge growth is determined by its R&D efforts on the technology. The level of knowledge stock for the follower country is augmented by its R&D activities for the technology and absorbing some of the external knowledge through spillover from the frontier. The extent to which the follower is able to exploit the external knowledge depends on technological gap, absorptive capacity, absorption time and degree of spillover. New concepts such as natural and enhanced degree of spillover, background and... 

Energy innovation is a key requirement to limit global warming and tackle climate change in the years to come. A better understanding of the public R&D mechanism is likely to improve allocation of resources for energy innovation. Thus, the present paper evaluates the impacts of public R&D and knowledge spillovers on the development of renewable energy sources. To achieve this goal, knowledge flow has been modeled as a function of public R&D expenditures, cumulative knowledge stocks and knowledge spillovers. To show the application of the model, the Nordic countries as one of the pioneers in renewable technologies have been chosen. Results show the cumulative knowledge stock will increase to... 

The purpose of this study is to apply managerial economics and methods of decision analysis to study the optimal pattern of innovation activities for development of new energy technologies in developing countries. For this purpose, a model of energy research and development (R&D) planning is developed and it is then linked to a bottom-up energy-systems model. The set of interlinked models provide a comprehensive analytical tool for assessment of energy technologies and innovation planning taking into account the specific conditions of developing countries. An energy-system model is used as a tool for the assessment and prioritization of new energy technologies. Based on the results of the...