Innovation dynamics and environmental technologies: the emergence of fuel cell technology

The purpose of this paper is to explore the dynamics of environmental innovation using the case of Ballard Power System’s Proton Exchange Membrane (PEM) fuel cell technology. Many have argued that this technology offers considerable environmental benefits and may surpass the internal combustion engine as the dominant vehicular power source. However, more than a century of incremental improvements, government policy and the emergence of complementary industries have made the latter a dominant and difficult to challenge technology. The authors review the difficulties of developing and adopting a radical innovation by analysing the value chain and supporting infrastructure. They also question the environmental implications and the role of government policy with regard to such technologies.