Supply-push or demand-pull? In a new publication, Marcel Bednarz and I find that the spatial distribution of the German #wind #energy industry was stronger shaped by local #demand-pull than by local #supply-push effects.
We use Bayesian survival models with data of wind turbine deployment and firm foundation for 402 German #regions between the years 1970 and 2015. New producers are found to emerge in #proximity to existing #local demand for #wind turbines.
In contrast, no evidence was found for producers being able to create local demand for their products by pushing the #adoption of the #technology in their #regions. The paper calls for more attention towards demand-side effects when studying spatial distributions of industries.
The paper has important implications for #diversification oriented policies: creating or stimulating local demand for new #technologies and #products might be a fruitful way to attract #industrial #production #competences.
https://academic.oup.com/icc/advance-article-abstract/doi/10.1093/icc/dtaa012/5835248?redirectedFrom=fulltext