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

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

doc.utwente.nl
from doc.utwente.nl More from this publisher
31.07.2013 Views

Theoretical perspectives 25 Systems change in long wave theory Freeman also focuses on systems change in a broader sense in his analysis of long waves in economic development (Freeman and Perez, 1988; Freeman and Louca, 2001). The development of specific clusters of technologies fuels growth in different economic eras and is accompanied by institutional structures that support and enable exploitation of these clusters (Perez, 1983). Freeman and Perez (1988) take path dependence to a new level beyond that of a technological system in their idea of a techno-economic paradigm as a “cluster of interrelated technical, organisational and managerial innovations, whose advantages are to be found not only in a new range of products and systems, but most of all in the dynamics of the relative cost structure of all possible inputs to production. In each new paradigm a particular input or set of inputs may be described as the ‘key factor’ in that paradigm characterised by falling relative costs and universal availability. The contemporary change of paradigm may be seen as a shift from a technology based primarily on cheap inputs of of energy to one predominatly based on cheap inputs of information derived from advances in microelectronic and telecommunication technology” (Freeman, 1988a: 10). What Perez (1983) especially stressed was that systems change can only take place through a combination of profound social, organisational and technical innovations. This is not a smooth process because there are “strong vested interests associated with the previous dominant paradigm and the regulatory regime and cultural norms associated with (…it)” (Freeman and Louca, 2001: 148). While the expiring era was based on institutionalised mass production and consumption, Fordist organisational forms, and hierarchical structures, the upcoming era is characterised by networks: internal, local and global (Freeman and Louca, 2001: 141). Thus, a new techno-economic paradigm is gaining ground, creating a new constellation that synchronises scientific, technological, economic, political and cultural developments. The ideas put forward here are very significant for our analysis of the electricity system, on the one hand because the shift to information technology and a network society is a factor in shaping the development of the electricity system, and on the other hand, because the focus on interaction between technical, organisational, and institutional innovation is the starting point for our analysis. Sociotechnical change theory Sociotechnical change theory advocates the integrated study of society and technology and has provided insights on the way technology evolves in society and social shaping of technology occurs (Bijker et al., 1987; Bijker and Law, 1992; Williams and Edge, 1996; Rip and Kemp, 1998). It considers technological change not as a rigid, categorised, process but as a

26 Chapter 2 multidirectional flux that involves constant negotiation and renegotiation among and between groups shaping the technology (Pinch and Bijker, 1987). Technology is shaped by social, economic, cultural and political forces and in the same process technology shapes human relations and societies (Rip and Kemp, 1998). This co-evolution is often path dependent in the sense that configurations of technology entrenched in social processes, consumption patterns, and lifestyles are difficult to reverse. The concept of path dependence is useful in order to explain why, despite clear intensification of environmental pressures, policies have often not been able to foster fundamental changes in production and consumption. Environmental measures, technologies and policies initiate from the accumulated technologies and competencies that have brought forth technological systems entrenched in various institutional structures and embedded in society. Rip et al. (1995) point out how the institutional division between promotion and control of technology leads to development of technologies that produce unforeseen side-effects, whereas control and regulation of these side-effects only takes place once the technology has penetrated firms, markets and society. They argue for constructive technology assessment where more anticipatory processes are set in motion in order to reduce harmful effects of technology to emerge. The rationale is also that it is more difficult to change a technology once it has already entered the market place. Here sociotechnical change theory also shares common ground with new institutional theory (March and Olsen, 1989; Powell and DiMaggio, 1991; Guy Peters, 1999) that points to the importance of institutions (both formal and informal rules) as sources for path dependence. Sociotechnical change theorists particularly explore how technologies and artefacts are both products and sources of these path dependencies. Both technological and regulatory development can become dominated by gradual improvement of dominant systems and are, consequently, unable to bring forth fundamental systems change. Sociotechnical change theory points to collaboration as a way out of this deadlock. Social networks are key both in the stabilisation of present technologies and, potentially, in the creation of new ones (Weaver et al., 2000). A focus on system optimisation occurs due to routinised behaviour and R&D trajectories that become fixed around dominant guiding principles. As problem definitions become shared within a network a powerful constituency is developed that perpetuates its technology. Based on experiences of a program on sustainable technology development Weaver et al. (2000) argue that new directions for R&D might be found by creating new cross-sectoral networks around innovation challenges, and by helping network members to redefine innovation challenges in new terms. From a similar perspective Schot (2001) proposes to broaden the design process of technologies by bringing together all interested parties early on and

26 Chapter 2<br />

multidirectional flux that involves constant negotiation <strong>and</strong> renegotiation<br />

among <strong>and</strong> between groups shaping <strong>the</strong> technology (Pinch <strong>and</strong> Bijker, 1987).<br />

Technology is shaped by social, economic, cultural <strong>and</strong> political forces <strong>and</strong><br />

in <strong>the</strong> same process technology shapes human relations <strong>and</strong> societies (Rip<br />

<strong>and</strong> Kemp, 1998). This co-evolution is often path dependent in <strong>the</strong> sense that<br />

configurations of technology entrenched in social processes, consumption<br />

patterns, <strong>and</strong> lifestyles are difficult <strong>to</strong> reverse. The concept of path<br />

dependence is useful in order <strong>to</strong> explain why, despite clear intensification of<br />

environmental pressures, policies have often not been able <strong>to</strong> foster<br />

fundamental <strong>change</strong>s in production <strong>and</strong> consumption. Environmental<br />

measures, technologies <strong>and</strong> policies initiate from <strong>the</strong> accumulated<br />

technologies <strong>and</strong> competencies that have brought forth technological<br />

systems entrenched in various <strong>institutional</strong> structures <strong>and</strong> embedded in<br />

society. Rip et al. (1995) point out how <strong>the</strong> <strong>institutional</strong> division between<br />

promotion <strong>and</strong> control of technology leads <strong>to</strong> development of technologies<br />

that produce unforeseen side-effects, whereas control <strong>and</strong> regulation of <strong>the</strong>se<br />

side-effects only takes place once <strong>the</strong> technology has penetrated firms,<br />

markets <strong>and</strong> society. They argue for constructive technology assessment<br />

where more anticipa<strong>to</strong>ry processes are set in motion in order <strong>to</strong> reduce<br />

harmful effects of technology <strong>to</strong> emerge. The rationale is also that it is more<br />

difficult <strong>to</strong> <strong>change</strong> a technology once it has already entered <strong>the</strong> market place.<br />

Here sociotechnical <strong>change</strong> <strong>the</strong>ory also shares common ground with new<br />

<strong>institutional</strong> <strong>the</strong>ory (March <strong>and</strong> Olsen, 1989; Powell <strong>and</strong> DiMaggio, 1991;<br />

Guy Peters, 1999) that points <strong>to</strong> <strong>the</strong> importance of institutions (both formal<br />

<strong>and</strong> informal rules) as sources for path dependence. Sociotechnical <strong>change</strong><br />

<strong>the</strong>orists particularly explore how technologies <strong>and</strong> artefacts are both<br />

products <strong>and</strong> sources of <strong>the</strong>se path dependencies. Both technological <strong>and</strong><br />

regula<strong>to</strong>ry development can become dominated by gradual improvement of<br />

dominant systems <strong>and</strong> are, consequently, unable <strong>to</strong> bring forth fundamental<br />

systems <strong>change</strong>. Sociotechnical <strong>change</strong> <strong>the</strong>ory points <strong>to</strong> collaboration as a<br />

way out of this deadlock. Social networks are key both in <strong>the</strong> stabilisation of<br />

present technologies <strong>and</strong>, potentially, in <strong>the</strong> creation of new ones (Weaver et<br />

al., 2000). A focus on system optimisation occurs due <strong>to</strong> routinised<br />

behaviour <strong>and</strong> R&D trajec<strong>to</strong>ries that become fixed around dominant guiding<br />

principles. As problem definitions become shared within a network a<br />

powerful constituency is developed that perpetuates its technology. Based on<br />

experiences of a program on <strong>sustainable</strong> technology development Weaver et<br />

al. (2000) argue that new directions for R&D might be found by creating<br />

new cross-sec<strong>to</strong>ral networks around innovation challenges, <strong>and</strong> by helping<br />

network members <strong>to</strong> redefine innovation challenges in new terms. From a<br />

similar perspective Schot (2001) proposes <strong>to</strong> broaden <strong>the</strong> design process of<br />

technologies by bringing <strong>to</strong>ge<strong>the</strong>r all interested parties early on <strong>and</strong>

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!