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Abstract Recent development and sustainable improvement studies have been conducted to investigate the effects of appropriate technology on the growth of developing and developed countries. As one of the most notable official development assistance methods for developing countries, appropriate technology has been widely used for improving location situations in various industry sectors such as IT (information technology), environment and energy. Among these sectors, the energy industry is considered one of the most active fields for appropriate technology. However, only a few studies have provided the in‐depth analysis of an ecosystem necessary for the sustainable growth of appropriate technology and foresight about the future directions of this technology. This study presents the definitions, antecedents, assessment of appropriate technology and recommendations for the future of appropriate energy technology in the context of many successful cases in the energy industry. The concepts of generating ‘shared social value’ and ‘local reverse innovation' are introduced, and how they play a key role in the recommendations is explained. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
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