System failure, innovation policy and patents: Fuel cells and related hydrogen technology in Norway 1990–2002

The empirical focus of this article is technological innovation activities in the emerging field of fuel cells and related hydrogen technology in Norway from 1990 to 2002. In this period, four comparatively large-scale research and development projects and a number of smaller projects aimed at development of fuel cells technology were undertaken, resulting in many inventions that were subsequently patented. Although this creativity may be considered an indication of success, only one of the projects became successful in an innovation perspective. All the large projects were initiated and funded for divergent political and economic reasons. An important reason in the late 1980s was the prospect of using Norway's abundant supply of natural gas in fuel cells for electric power generation. The large R&D projects that attempted to develop fuel cells based on natural gas as energy source failed. In contrast, the successful project was undertaken by military R&D, i.e. in a different system of innovation than the projects that failed. Analysis of these cases points to the importance of a systemic approach to innovations—and to policy making. One challenge for policy makers is to decide how they should promote this development which is crucial for the vision of a future “Hydrogen Economy”, i.e. what kind of policy incentives should be introduced to spur efficiency in technological development and diffusion. Theoretically, many options are available; however, understanding the innovation dynamics in this sector is fundamental for making choices. In this article, focus will be set on policy aspects using an innovation systemic approach to analyze development of fuel cells and related hydrogen technology in Norway.