Utilising Upgrading Mechanisms for Survival - The case of the German solar module manufacturing industry

Abstract

This research paper investigates the recent photovoltaic industry crisis in Germany. For the case study 9 leading German solar module manufacturing companies, 1 silicon manufacturer and 3 industry experts, working at the top research institutes, were interviewed through semistructured interviews. In order to contribute to research, this study’s first aim is to investigate the upgrading processes which helped solar module manufacturers in Germany to survive the crisis, while a second aim is to contribute to the research of knowledge base upgrading, further conceptualising van Tuijl et al.’s (2016) early framework, by investigating how firms’ upgrading mechanisms relate to the types of upgrading and knowledge bases. The study contributes to the upgrading mechanism framework, by extending it and demonstrating the value of using two additional mechanisms: internal and acquiring to the main framework of mobility, monitoring and collaborations. The findings from the research suggest that Collaborations, Monitoring and Internal mechanisms were the most important for the survival of the price-uncompetitive German PV firms, while Mobility and Acquiring were seen as less important. Furthermore, in the first study of its kind, it shows the linkages that exist between upgrading mechanisms, knowledge bases and the types of upgrading