Working Paper: NBER ID: w15676
Authors: Ashish Arora; Alfonso Gambardella
Abstract: The history of innovation in the chemical industry offers many insights for accelerating energy innovation. In this chapter, we begin by laying out the early history of the chemical industry for an overview of the role innovation has played in its development. We then explore three noteworthy historical experiences. We describe the switch in feedstocks from coal to oil, and briefly analyze two government programs that have attempted to promote innovation: synthetic rubber and synfuels. We take a close look at the role that specialized engineering firms have played in the diffusion of important innovations, and we detail the effect that government policies have had on fostering innovation. In particular, we highlight the role of anti-trust policies, and of policies for protecting intellectual property rights.
Keywords: energy innovation; chemical industry; government policies; technology diffusion
JEL Codes: N70; O31; O33; O34; O38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| government policies (H59) | innovation in the chemical industry (L65) |
| transition from coal to oil (L71) | transformation of the chemical industry (L65) |
| advancements in petroleum refining (L71) | transition from coal to oil (L71) |
| development of new processes for producing synthetic materials (L65) | transition from coal to oil (L71) |
| government programs (H53) | innovation diffusion (O35) |
| specialized engineering firms (L79) | rapid diffusion of innovations (O36) |
| government policies (H59) | innovation (O35) |
| government policies (H59) | firms investing in R&D (O31) |