NISTIR 7161
The Role of the U.S.  National Innovation System in the Development of the  PEM Stationary Fuel Cell

Abstract

This report originated in the authors' participation in a multi-country study of national innovation systems and their impact on new technology development, sponsored by the Organization for Economic Cooperation and Development (OECD). Our task was to look at the U.S. national innovation system's impact on the commercial development of Proton Exchange Membrane (PEM) fuel cells for residential power applications.

Early drivers of PEM fuel cell innovation were the aerospace and defense programs, in particular the National Aeronautics and Space Administration (NASA), which used fuel cells on its spacecraft. In the early 1990s, deregulation hit the electric utility industry, which made utilities and entrepreneurs see the potential in generating electricity from distributed power.

Throughout the 1990s, the Department of Energy funded a significant portion of civilian fuel cell research, while the Department of Defense and NASA funded more esoteric military and space applications. In 1998, the Department of Commerce's Advanced Technology Program (ATP) awarded the first of 25 fuel cell projects, as prospects for adoption and commercialization of fuel cell technologies improved.

Based on findings from this study and discussions with an OECD-sponsored working group studying innovation in energy technologies, we find that private industry conducts significant amounts of basic research in fuel cells. This is partially driven by the significance of the automotive, energy, and electronics industries in the participating countries. Energy security is another prime driver. Industry receives a majority of the new fuel cell patents issued. However, national laboratories and universities continue to publish the majority of papers devoted to fuel cells. These findings support the value of public-private partnerships such as ATP, especially projects that link universities or national labs with private industry either through a formal joint venture or as a subcontractor. In addition, the working group acknowledged government's important role both in terms of developing fuel cell standards through collaborations between standards development organizations and national labs, and in dealing with a wide variety of public safety issues. These findings support National Institute of Standards and Technology initiatives in facilitating standards development for fuel cells.

Despite the excitement generated by discussion of the "hydrogen economy," most fuel cell applications are still at the pre-commercialization stage. Commercial products for small portable uses may be available in the marketplace within the next year or two.

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Date created: March 29, 2005
Last updated: August 3, 2005

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