The
research on innovation in the maritime sector has commonly focused on
the implementation of innovation rather than on more complex issues such
as the interplay between technological aspects, market conditions, and,
particularly, regulatory regimes in shaping the emergence and growth of
global systems involved with the development, production, and use of
environmental innovation. Therefore, this paper sets out to analyze—by
combining insights from sectoral (SSI) and technological (TIS) systems
of innovation concepts—ballast water treatment systems (BWTS), designed
to prevent the negative impacts of invasive species, as an example of
such complex interaction. The results show how public policy and
institutional acceptance have shaped the market for BWTS. First, BWTS
were induced by environmental regulations mandating their use. Second,
the demand for BWTS increases substantially when the implementation date
of the regulations approaches. Third, differences in regulatory regimes
shape the demand for various available technologies. Without
coordinated regulations, this unclear operating environment remains a
definite concern for shipowners when choosing the specific type of BWTS
technology for onboard installation. The results also underline that the
combined SSI/TIS framework, utilized in this paper, is a feasible
analytical framework for studying environmental innovation.