Solar capabilities : promoting, technological learning in South Africa's photovoltaic supply industry

Abstract

I explore the mechanisms through which technological capabilities have been built in the market for photovoltaic (PV) module and balance of system (BOS) manufacture in South Africa. Drawing on the literature on technology transfer and economic development, my aim is to identify the relative influence of three types of learning mechanisms - enterprise specific, supplier driven, and government induced - on the acquisition of technological capabilities in firms. Qualitative case studies provide the context through which the influence of each learning mechanism is assessed. My research suggests that South African firms rely far more heavily on learning relationships associated with their suppliers, than learning derived from human resources internal to the firm or the policy and regulatory framework promoted by the national government. South Africa's approach differs greatly from latecomer countries with more advanced module manufacturing industries: in India, for example, local firms have relied heavily on government policy and regulation to facilitate their entrance into more technologically complex areas of operation. The implications of this finding are discussed, and recommendations put forth for how the national government can bolster industrial learning activities.