Two Degrees of Innovation

The document argues that a global transformation of energy infrastructure is necessary to avoid climate disaster and that both developed and emerging economies can benefit from the growing market for utility-scale, low-carbon power technologies. It proposes an 'innovation ecosystem' approach to address the complexity of innovation processes, emphasizing that improvements in price and performance across a technology's lifecycle—from design to maintenance—are essential to closing the gap between current and required technology performance. The paper offers a step-by-step process for policymakers to build the innovation capacity needed to compete in the global value chain.

• A global shift in energy infrastructure is required to provide modern energy services and prevent a climate disaster, creating a growing global market for utility-scale, low-carbon power technologies that offers benefits to both emerging and developed economies provided they build innovation capacity.
• Innovation, defined as improvements in price and performance through new products, processes, or policies, is the mechanism to bridge the gap between current low-carbon technologies and the high-performance, low-cost versions required. These innovations can occur at any stage of a technology's lifecycle, including design, manufacturing, operations, and maintenance.
• The 'innovation ecosystem' approach is designed to manage the heterogeneity, uncertainty, and complexity of innovation processes by identifying the specific services innovators require, which should be the primary focus of policy investment.

APA

World Resources Institute (n.d.). Two Degrees of Innovation. https://www.wri.org/research/two-degrees-innovation

Chicago

World Resources Institute. Two Degrees of Innovation. n.d. https://www.wri.org/research/two-degrees-innovation.

Wikipedia

{{cite report |author=World Resources Institute |title=Two Degrees of Innovation |url=https://www.wri.org/research/two-degrees-innovation |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendtwo, author = {{World Resources Institute}}, title = {{Two Degrees of Innovation}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/two-degrees-innovation}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }