This paper studies the evolution of the photovoltaics industry in Australia, Germany and Japan taking a comparative perspective. A modification of the sectoral innovation system framework is used to discuss: knowledge and technologies, actors and interactions, institutions and funding, development of markets and technological structure, as a way to understand the changes. In the process of transition from niche to mass production, national players have specialised in different activities, and the institutions’ building block has been a key determinant. In the case of Australia, it is also the least developed area which ultimately exposes the country to losing its innovation benefits.