Knowing Where to Go: The Knowledge Foundation for Investments in Energy Innovation

Energy policies around the world are increasingly focussed on promoting the transition towards a more sustainable energy system. Evidence-based decision-making regarding such policies need a solid knowledge foundation. We take stock of our existing knowledge in terms of the statistics and data that forms the basis for research, policy and business decision making regarding investments in the energy sector. The available measurement techniques and data on energy production and investments inform such debates, yet we call for improvements. A number of challenges relate to a true identification of the sector, the measurement of technological change and industry dynamics, and a comprehensive overview of the investments and investors in this sector. We argue that especially activities and barriers regarding investments and investors should be thought into the knowledge foundation we need for wise decision-making. This information is important not only in a research and policy context, but also for practical reasons. Potentially, the quality and amount of statistics may create virtuous or viscous cycles of investment behaviour because investment areas only covered by weak statistical evidence may receive limited attention from investors, which may in turn render fewer incentives for producing better statistics.