Green economy: building new allies
Creators: name: Palacios, Emilse Anabella
Publisher: name: The University of North Carolina at Chapel Hill University Libraries
Year: 2011

description: Using the case of North Carolina's Research Triangle region, this study examines the potential for developing a green economy cluster. In this paper, I argue that the importance of the network institutions and local characteristics must be understood in order to promote green business cluster development. North Carolina has a strong regulatory asset that has gained support from a wide spectrum of businesses and has created opportunities for green industry development. The 2007 Renewable Energy Portfolio Standards (REPS) requires investor-owned utilities in North Carolina to meet up to 12.5% of their energy needs through renewable energy resources (such as solar electric, solar thermal hot water, wind, geothermal, tidal energy, hydrogen derived from other renewable sources, hydroelectric, waste heat and biomass resources) or energy-efficient measures, which "must result in a measurable and verifiable reduction in energy consumed by a utility customer" (North Carolina Sustainable Energy Association (NCSEA), 2009). Signs that this law has affected industrial development in the region are already evident, but still more work is needed to anchor and expand regional business opportunities in green technology. This paper investigates the opportunities and challenges for green technology cluster development and considers ways to best leverage North Carolina's commitment to environmental standards. The green technology sector has been identified as one of eleven cluster targets in the Research Triangle region's most recent five-year economic development plan (RTP, 2009). This sector has been recognized as a point of confluence of the region's strengths in biotechnology, information and advanced material sciences. Thus, the Research Triangle area plans to focus on expanding these newly competitive advantages by recruiting new companies, promoting new ventures, and taking action steps to develop the necessary infrastructure and provide higher job rates for its residents. Through this research I identify the conditions under which it is possible to promote a green technology cluster in the Research Triangle area. By exploring the impact of the REPS law since 2007 to date, I identify the potential that renewable and energy efficiency sectors can provide for cluster development in the Research Triangle area. Related to this effort, I examine the network of institutions that is currently working on green economy issues, and its potential for collaboration, information sharing and formulation of the industry's next strategic steps. This analysis serves as a regional assessment of the current business environment and main perspectives of the green technology industry, and sheds light on the importance of focusing on local institutional networks in the absence of a national energy bill. This paper suggests that, although the REPS law acts as an important impetus for industrial development in green technology, other institutional interventions are needed to promote cluster development by providing space for commercial networks, ensuring continuous exchanges of information, and preserving the exclusive assets that this particular region holds. These interventions will encourage local firms to continue to innovate, work closely with the state's knowledge resources, and support the growth of green technology start-up businesses.