Factors influencing organisational innovation in wind farms

Innovation in the wind energy sector is dominated by R%D investments in wind turbine industry. The focus on product innovation is high owing to the huge setup cost involved in setting up a wind turbine. However, not much work is found among literature on innovation adopted by wind firms that own these wind turbines. This study proposes a framework for analysing innovations adopted by wind firms by constructing an organisational innovation measurement model. The study examines the effects of various factors on two types of innovation, administrative and technical, in the selected sample of wind firms. The results indicate that factors that are favourable to administrative innovations differ from those that are conducive to technological innovation. Three variables are significant predictors of administrative innovation: organisational characteristic innovation and strategic innovation. Process innovation contributes significantly to the model of technical innovation. Moreover, the results of the study show that more importance is given to technical innovation than administrative innovation in wind farms.