This chapter will discuss the policy framework in the countries Japan, USA and Germany.
It has been proven that innovations in their early stages need technology specific support, to prevent lock-in effects of earlier technologies from only incentivizing incremental innovations.1 When developing such innovations new products or entering markets, firms are acting in a network of governmental influence, universities and customer. The actors, which are engaging in this network, can be classified as the role of the government and the interaction between firms and non-firm. This chapter will discuss the different influences of the institutional framework, which influence the development of technologies, by framing policies, opportunities and capabilities.2
Support of new technologies may happen through R&D funding, support for demonstration trials, testing etc. Another form of influence can be planning incentives on a regional level, for example incentives for the use of fuel cells in new buildings.3
The targets of stimulation in the fuel cell industry vary from region to region. In the US they are mainly driven by national security issues, in Europe by environmental targets and in Japan economic (high value manufacturing) as well as environmental targets and energy security. As shown in part 2 there are several technologies, policies may vary from technology to technology depending on which focus is set and therefore create competition between those. Also other technologies compete or complement fuel cell. Incentives can have a high influence on creating the wanted effects.3 4 One of the main indicators of political influence are the expenditures for R&D in this area. In the following part, the situation in the three countries which are ranked highest with regard to expenditures are analyzed.4
Although often seen together hydrogen and renewable energies have some distinctions, which influence the policies, as it is unlikely that the same policies for both technologies will work. Hydrogen is an energy carrier and therefore needs infrastructure for production and distribution. Hydrogen has to be made compatible for the existing infrastructure and cannot be blended. The future development is heavily relying on critical issues like storage where technological progress is necessary. Therefore a successful policy has to connect market requirements, climate requirements and the hydrogen technology development.5
A study in Germany has shown that the political conditions influence the adoption of FC. There is a difference in the adoption through commercial and private users. For commercial user the investment decision is influenced by feed in laws for CHP systems and the oil and energy price. Private consumers are positively affected by a future oriented energy policy and clear law statements. Whereas commercial users deny subventions, because they are unreliable, private users endorse subventions to cover expenses which arouse by the use of FC.6
Most of the policies are facing the same problem. On the one hand they have to be broad enough to create new markets and encourage firms to enter, but on the other hand they are focused on specific technologies where there is the greatest chance to success. A proposed solution includes to keep regulatory measures flexible while focusing R&D on special technologies.7
Read more about the situation in the three countries in the printed report.