Seeking Solutions for Novel Problems: The Evolution of Knowledge Sources in the Renewable Electricity Industry

Technological search studies argue that problems are a key trigger to search, but we lack understanding of which features of the problem associate with a critical search activity: search breadth. This paper considers how different types of problem sources—local versus distant problem sources—associate with heterogeneity in search breadth. Because of differences in how familiar firms are with each problem, and in expectations of their ability to influence the problem source, problems triggered by distant sources are associated with relatively greater technological search breadth. Firms’ technological capabilities, however, temper these findings, suggesting that more capable firms are particularly responsive to local problem sources. We test these ideas using data describing the U.S. renewable electricity sector from 2000 to 2010, generating theoretical, empirical, and public policy implications.