Development trajectories in China's wind and solar energy industries: How technology-related differences shape the dynamics of industry localization and catching up

China has been very successful in creating conditions for industry localization in solar and wind energy manufacturing. In terms of their competitiveness in foreign markets, however, Chinese solar photovoltaics firms have shown significantly greater achievements than their counterparts in the wind energy sector. Moreover, the success of China's solar photovoltaics industry has come in spite of significantly lower levels of domestic market support. The paper argues that technology-related factors and their implications for international technology transfer are critical for explaining the different speeds with which Chinese firms have been able to catch up in the two sectors. This is supported by a comparative analysis of technology transfer in the two sectors.