The investment needed for a given technology to be competitive with incumbent technologies is the learning investment. The learning investment can be made by the state in the early states or by private corporations as the technology gets closer to being competitive. Market Transformation provides a coherent explanation of the transfer f the investment costs from the state (support for innovation, incentives etc) to the private sector (through regulation).
Page 224 Hinnels and Boardman in Foxon, T, Kohler, J. and Oughton, C. (2008) Innovation For A Low Carbon Economy Economic, Institutional and Management Approaches Cheltenham: Edward Elgar
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