Decarbonizing electricity production in the EU may necessitate building new "low-carbon" capacity (excluding nuclear investments) to deliver 3500 TWh by 2050. Offshore wind power has the potential to contribute substantially to fill this gap: Realizing this potential is, however, difficult since deployment offshore does not constitute a simple diversification by the onshore wind turbine industry to a new segment. This paper identifies factors obstructing the development of the northern European innovation system centered on offshore wind power, specifies a set of associated policy challenges and discusses various policy responses. (C) 2013 Elsevier Ltd. All rights reserved.