Demand-Pull Tools for Innovation in the Cement and Iron and Steel Sectors

Aaron Bergman, Alan Krupnick, Daniel Haerle, Lucie Bioret, Yuqi Zhu and Jhih-Shyang Shih
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Alan Krupnick: Resources for the Future
Lucie Bioret: Resources for the Future
Yuqi Zhu: Resources for the Future
Jhih-Shyang Shih: Resources for the Future

No 23-01, RFF Reports from Resources for the Future

Abstract: Demand-pull measures are a set of relatively underused policies for driving innovation by increasing the demand for innovative technologies. These measures contrast with supply-push policies, such as research and development funding, that subsidize the supply of innovative technologies. Demand-pull policies include:Prizes for innovationAdvance market commitments (AMCs), which commit to purchase innovative products when developedGovernment procurement, where the government provides additional demand for innovative technologiesMilestone payments, where funding is released in stages at the completion of various development stagesStandards, which can stimulate demand by providing information about technology performanceContracts for differences, which can reduce price volatility-related risk related that can hamper innovation

Date: 2023-03-01
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