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

Theoretical perspectives 21
organisation 2 . This yields to, what Hughes referred to as, momentum of the
technological system, a certain orientation of technological and social
developments that fosters further growth of the system. Aspects such as sunk
costs, fixed assets and vested interests also add to system momentum
(Hughes, 1987: 77). An example of an orientation contributing to
momentum in the electricity system has been the search for ways to increase
the load factor of the system 3 through the shaping of societal demand for
electricity in off-peak periods 4 . Crucial for the continuous expansion of large
technical systems is how efforts are collectively mobilised to overcome
reverse salients: critical problems for the further development of the system.
In Hughes’ analysis especially the role of system builders is crucial in the
articulation of these critical problems and in the alignment of actors in the
process of solving the reverse salients. The focus was also on the way the
system was shaped by social forces, such as through the acceptance of
monopoly organisation as a natural organisational form for electricity
systems. Cultural and institutional differences also explain the divergence in
electricity systems across nations despite the application of similar
technologies, or in Hughes’ words: “technical problems are sometimes in
essence institutional and value conflicts” (Hughes, 1983: 462). The analysis
of Hughes shows how activities in different dimensions (politics,
technology, industry) became directed towards further expansion and
optimization of the electricity system, but also how differences in societal
contexts (USA, UK, and Germany) shaped patterns of interaction between
those dimensions and led to rather diverse systems.
Following Hughes’ approach, a stream of work focusing on large technical
systems has emerged that shares the focus on the way social and technical
elements are interwoven and actors are guided by principles that shape a
certain stability of the system (Mayntz and Hughes, 1988; Summerton,
1994). In this more recent work Hughes’ focus on understanding system
momentum and stability is increasingly complemented by a focus on
understanding processes of reconfiguration and change in large technical
systems. One of the key aspects is how “previously achieved closure is
undone” (Summerton, 1994: 5). Closure refers to dominance of a specific
interpretation about the way a system should function, leading to disregard
2 Hirsh (1999) analyses how consensus regarding utility organisation was established in the
United States in the early twentieth century, and how corrosion of this consensus took
place from the 1970s onward.
3 Load factor refers to the rate of utilised capacity of the electricity generating units in the
system. The load factor initially was rather low, as electricity demand tended to cluster
around certain periods (peaks) and was much lower in other periods.
4 Nye (1990) provides an elaborate and interesting account of this process of electrification
in the early stages of the electricity system in the United States.