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Demand by product characteristics: Measuring solar cell quality over time

: Haller, I.; Grupp, H.


Journal of Evolutionary Economics 19 (2009), Nr.4, S.487-506
ISSN: 0936-9937
ISSN: 1432-1386
Fraunhofer ISI ()
product characteristic; quality change and demand; metric re-scaling; photovoltaic

The purpose of this paper is to investigate the impact of innovation quality as a success factor of companies that satisfy demand in government-subsidized science-based markets. This paper focuses on the Photovoltaic market in Germany as a case study. It carries out the analysis in three stages. First, the efficiency of photovoltaic product characteristics is examined using data envelopment analysis (DEA). Second, by means of a metric re-scaling approach, the technical improvement of solar modules offered on the German market is analyzed over time. Next, the results of the second stage are compared to demand growth (evolution of market shares). In conclusion, it can be shown that innovation quality in science-based markets is often an explanation of long-term growth, but occasionally a reduction of performance characteristics meets demand.