Collaborative Advantage

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In an era of rapid international economic integration, how do countries interact, innovate, and compete in fundamental industries like energy? This examination focuses on the development of wind and solar industries, which have transformed from cottage industries into $300 billion global sectors, influenced by ambitious public policy. China, Germany, and the United States have each cultivated distinct firms with varying technical capabilities, demonstrating that globalization has reinforced national patterns of industrial specialization. Economically, globalization has enabled firms to specialize through collaboration, while politically, it has allowed them to adapt existing domestic institutions for new industries. The analysis highlights the shortcomings of policy efforts that overlook the cross-national nature of innovation, providing a fresh perspective on the causes of changes in global innovation organization and their effects on domestic politics. In light of the challenges to global supply chains following the Covid-19 pandemic, this work contests the view that globalization is solely about competition, emphasizing the crucial role of collaboration in the global economy, especially in clean energy sectors vital for addressing the climate crisis.