A comparative review of the role of markets and institutions in sustaining innovation in cleantech: a critical mass approach

Abstract

This paper serves to examine and compare the role of markets and institutions in the adoption of clean technologies ('cleantech') in Canada, Germany and the USA. Sustainable innovation and industry growth in cleantech in a particular jurisdiction can take place when there is ongoing market pressure for cleantech and a 'critical mass' of private sector, government and academic actors, initiatives and structures that support the widespread adoption and use of cleantech. Employing Webb's (2005) sustainable governance approach as a base of analysis, it would appear that Canada lacks the density of institutions, instruments, processes and actors needed to create a critical mass to support sustainable cleantech activity in the long-term. In particular, when compared with Germany and the USA, the Canadian approach lacks key federal support and lacks the degree of private sector and civil society (academic) activity in cleantech that can be observed in those jurisdictions.