Innovation and institutional change: the transition to a sustainable ...

228 Chapter 8
ideas. Moreover, the strong focus on incumbent companies should be
assessed critically as many have pointed out how difficult it is for
incumbents to deliver more radical innovations (Henderson and Clark, 1990;
Utterback, 1994; Christensen, 1997). Especially new start-ups, small firms,
and outsiders are found to play a pivotal role in studies of radical innovation
and systems change (Van de Poel, 1998, 2000; Geels, 2002). Incumbents are
sometimes able to provide new products and markets, but evidence shows
that it is often small, creative, new entities and networks developing new
practices that provide the seeds for new sociotechnical systems. These
insights have led to a whole body of research focussing on specific
management approaches to radical innovation because established
management approaches for regular innovations (‘evaluation routines’) may
even be detrimental to radical innovations (Christensen, 1997; McDermott
and O’Connor, 2002; Jolivet et al, 2002).
Suggestion 1: Broaden networks and perspectives
The cases of green electricity and decentral cogeneration illustrated that
alternative organisational forms, new networks, and alternative institutional
arrangements can be crucial in advancing alternative practices. The inclusion
of incumbent energy companies in those change processes could take place
as their frames of reference and perceptions of the nature of problems and
solutions shifted. We do therefore not suggest that the involved actors and
proposed paths do not hold promise, but we argue for the value of involving
other actors and networks exhibiting less lock-in to existing energy paths and
its institutional logics.
To also adopt a constructive stance therefore two suggestions are made. One
proposal is to develop a transition route around actors and networks with
initial exclusion of incumbents. A possibility is to focus on ways to
integrated developments in information and communication technologies
(ICT) with alternative energy systems. ICT plays a role in alternative
metering and control systems for energy users, and on the other hand the
expansion of ICT companies, networks and use also demands new forms
(quality) of energy provision. Another proposal is the development of a
transition route from the user perspective. In the relative successful cases of
green electricity and decentral cogeneration the role of users and a strong
demand orientation played an important role. The relevance lies also in the
nature of the dynamics involved in such a user oriented approach which can
initiate a rather rapid take-off once an effective new practice, broad patterns
of mobilisation, and catching institutional logics have materialised.