Volume 60

Evolution of innovation ecosystem in Emerging Industries: A Case Study of China’s Photovoltaic Industry Yitao Ge,Sien Li, Haiyang Zhi,Qiang Zhi,

Abstract

Since 2001, China’s photovoltaic (PV) industry has evolved from a latecomer to the global leader. Grounded in innovation ecosystem theory, this paper examines the development of China’s PV industry through four stages characterized by technology, market, finance, and policy dynamics: Pre-commercialization R&D accumulation stage (prior to 1995), Initial commercialization stage driven by rapid international market expansion (1996-2008), Technology and industrial chain integration stage accelerated by domestic market growth (2009-2017), Intense competition and phase out stage under widely technological diffusion and overcapacity (post-2018). This study reveals that policy tools should strategically coordinate technological, market, and financial elements to guide innovation ecosystem participants, thereby facilitating the evolution of the whole innovation ecosystem in different development stages. This coordinated governance mechanism proves critical for achieving leapfrog development in emerging industries.

Keywords China’s photovoltaic industry, innovation ecosystem, key resources, development stages, leapfrog development