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which was a centralized research program which unsuccessfully attempted to develop a large- scale wind turbine that could be mass produced and would generate cost-competitive electricity. This effort was spearheaded by the National Aeronautics and Space Administration (NASA) and the Department of Energy (DOE). Research was also conducted within the DOE network of national research laboratories, which produced a few commercial wind turbines. Both demand-side and supply-side policies related to wind energies in the US were short-lived, leading to an inconsistent overall effort. This was one of the major reasons why wind power has not achieved full commercial viability in the power market. The wind report concluded with an analysis of which policies were successful, which were not, and why. It found that the supply-side policies were unsuccessful because there was no market to sustain development of a commercially successful turbine. In addition, there were other problems with the supply-side attempts at development. These flaws included a harmful bias towards earlier design models and poor integration of participating firms despite high costs. These problems led to incremental improvements in turbines rather than radical breakthrough technologies. Finally, it was argued that supply-side technological pushes may be unnecessary if economies of scale are utilized to make existing wind turbines competitive. On the demand side, government market-pull policies did help in technology diffusion, but were too inconsistent to create a lasting industry. The drop in energy prices counteracted attempts to increase demand for wind energy by lowering the price of its competition. Additionally, government incentives were rushed and also failed to distinguish between turbines of various kinds and benefits, leading to the support of some low-quality turbines and degrading the field. The wind study took special note of the importance of a consistent market for success and indicated that inconsistent government policies had failed to create such a market. It recommended improved and more consistent demand-side policies in conjunction with more path- independent supply-side efforts. Advanced Gas Turbine Systems The advanced gas turbine system investigation examined a subject more closely related to this case study60. It examined primarily combined cycle and steam injected gas turbines and their impact on the electric power industry. The report began with an analysis of the structure of the electric power and equipment industries. Then, the study focused on the innovation development process and the factors involved in the emergence of new technologies. The historical section of the advanced gas turbine system study set the stage for the industry structure into which advanced turbines would emerge. This overview included a review of US regulatory policy, the development of electric utilities, and the nature of the turbine manufacturing industry. It then traced the driving and sustaining forces of turbine innovation. 60 Paolo Goncalves, Cynthia Chuang, and Adam Cohn, “Advanced Gas Turbine Systems: Innovation Development and Impacts on the Electric Power and Equipment Industries,” Unpublished MIT Study, 1996. 40PDF Image | Energy RD Performance: Gas Turbine Case Study
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