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

Theoretical perspectives 47
at the level of a house or neighbourhood through a possible set of generating
options) does not occur. However, asking the question how the provision of
warm water is fulfilled (which type, whose ownership) is a much more
natural question as here the established design is one of providing heating
equipment towards individual households (e.g. we see different types of coevolution
of form and function of technologies). In both cases a network of
social relations has evolved that constrains and shapes action sets, decision
algorithms and actor preferences (Bassanini and Dosi, 2001: 61).
2.4.2 Systems change: deviating from established paths and regimes
From the previous we can conclude that deviating from established paths is
not an easy task. Just as people go through processes of socialisation, radical
products and technologies also have to go through processes of socialisation
in order to shape markets, to align with policies, and to become part of the
knowledge infrastructure. Deviation can be successful if the innovation is
successful in building a new constituency for the product or technology,
through aligning actors and artefacts in an agenda for the further spread of
the innovation, and by continuously reducing uncertainty regarding the
direction of the innovation process. In a way then, it concerns setting in
motion the same type of processes that have created the existing regime.
Table 2.4 provides an overview of some of the changes that are necessary at
the level of the firm, with a focus on characteristics of technology and
production, and on relations with consumers. The table is derived from
Abernathy and Clark (1985: 5) with a third column added by the author to
indicate the sort of action necessary for a company to enable these type of
innovations. These are changes that can be perceived as to be within reach of
the innovator, in the sense that the company can probably influence them to
a certain extent. We will follow this up with an overview of some of the
changes that are less within reach of the innovator, and sometimes beyond its
reach, such as those within policy and societal networks, and institutional
changes.
What becomes clear from this general overview is that the type of changes
implied in a radical innovation can be rather comprehensive and may involve
the development of whole new networks for a company. It will involve
changes in routines within the innovating company but may also imply
changes in routines of customers and of other companies within the product
chain, e.g. maintenance and repair firms that have to learn how to deal with
the specific problems of this new product or technology. These changes
often need to be accompanied with processes of institutional change
necessary to support the introduction of the product/technology, to facilitate