Int. J. Economics and Business Research, Vol. 2, Nos. 3/4, 2010 245 Copyright © 2010 Inderscience Enterprises Ltd. The development of Renewable Energy industries in emerging economies: the role of economic, institutional, and socio-cultural contexts in Latin America Juan Leonardo Espinoza Ministry of Electricity and Renewable Energy, Av. Eloy Alfaro N29-50 y 9 de Octubre-Edif., Correos del Ecuador (2º. Piso), Quito, Ecuador E-mail: juanleonardoespinoza@yahoo.com Harrie Vredenburg* Haskayne School of Business, University of Calgary, 2500 University Dr, NW, Calgary, Alberta T2N 1N4, Canada E-mail: harrie.vredenburg@haskayne.ucalgary.ca *Corresponding author Abstract: This paper is based on a comparative case study that analyses the development of the wind power industry in two Latin American countries. This study helps us understand the influence of the different economic, institutional, and socio-cultural contexts over the start-up of Renewable Energy (RE) businesses. This research identifies the key role that ‘informal’ institutional factors play. The paper also explains why supporting networks are local/regional. The paper concludes with implications for potential investors in RE projects in emerging economies. Opportunities for further research are identified. Keywords: sustainable development; wind power industry; RE; renewable energy; institutional factors; legitimacy; emerging economies; Latin America. Reference to this paper should be made as follows: Espinoza, J.L. and Vredenburg, H. (2010) ‘The development of Renewable Energy industries in emerging economies: the role of economic, institutional, and socio-cultural contexts in Latin America’, Int. J. Economics and Business Research, Vol. 2, Nos. 3/4, pp.245–270. Biographical notes: Juan Leonardo Espinoza is Undersecretary for Renewable Energy & Energy Efficiency, Republic of Ecuador. From 2005 to 2009, he was Executive Director of the Comisión de Gestión Ambiental, the environmental authority in Cuenca, Ecuador. He graduated from the Universidad de Cuenca in Electrical Engineering and worked in that field before earning an MSc in Energy and Environment from the University of Calgary/OLADE program in Quito, Ecuador and a PhD in Environmental Management/Sustainable Development and Strategy from the University of Calgary’s Haskayne School of Business in Canada. He regularly teaches graduate courses on energy and