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Deregulation and R&D in Network Industries: The Case of the Electricity Industry
Electricity reform has coincided with a significant decline in energy R&D activities. Technical progress is crucial for tackling many energy and environmental issues as well as for long-term efficiency improvement. This paper reviews the industrial organisation literature on innovation to explore the causes of this decline, and shows that it was predicted by the pre-reform literature.
Link
http://www.electricitypolicy.org.uk/pubs/wp/eprg0502.pdf