Drivers and barriers for floating wind

Abstract

Floating wind seems to be on the cusp of achieving large-scale diffusion with the commissioning of floating wind farms of commercial-scale. From a single full-scale prototype off the Norwegian coast in 2009, now to double digit rated capacity floating wind turbines to be commissioned by the end of 2022 and tens of gigawatts of installed capacity expected to be switched-on globally over the next decades. This can lead to fundamental changes in related industries and society, and the floating wind turbine is therefore considered a breakthrough technology. However, several designs of floating wind turbines have been invented, introduced and to some extent diffused in the floating wind market, while a dominant design has yet to emerge. The pattern of development and diffusion by Ortt & Schoormans (2004) is a widely adopted procedure that reveals how such a breakthrough technology may surpass consecutive phases that are characterized by distinct milestones prior to large-sale diffusion. This development and diffusion process may take on a lengthy and chaotic character in which large-scale diffusion of the breakthrough technology is blocked by barriers. Therefore, Ortt & Kamp (2019) developed a theoretical framework of core and influencing factors that serve as a prerequisite for large-scale diffusion of breakthrough technologies. To overcome or circumvent these barriers, the innovating company may adopt a niche strategy during the innovation phase to commercialize the technology, or to reintroduce the technology to the market after changing the physical aspects or the business model in order to better align the technology to the market during the market adaptation phase (Ortt, Langley, & Nico, 2013). Furthermore, niche strategies may be adopted to increase the knowledge and resources within the company, or to influence the broader technological innovation system by changing the behavior, opinion or perception of Suppliers, Customers or Institutions to gradually create or shape the niche market (Schulz, 2019). Thereby, the companies that developed the alternative designs of a floating wind turbine are well-guided in assessing the market and selecting a niche strategy accordingly. IHC IQIP is a supplier of equipment for the installation of reliable foundations and moorings in the offshore wind market and hence offers a unique set of knowledge, skills and competences to developed Complementary Products and Services – one of the core factors for large-scale diffusion - for the emerging floating wind market. Nevertheless, the perspective of a supplier of Complementary Products and Services and its strategic impact on the development and diffusion process has been largely neglected in the management and innovation literature. The theoretical objective of this thesis was therefore to create a better understanding about the mechanisms that drive market formation in a niche market where alternative designs of a breakthrough technology compete to achieve large-scale diffusion from the perspective of a so-called Complementor. In turn, the managerial objective was to develop a theoretical framework that aids managers in selecting a niche strategy to develop and diffuse Complementary Products and Services that are tailored to one or more designs in such a niche market.