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

48 Chapter 2
its diffusion, to create some momentum, and to secure that in its further
diffusion the product exploits its sustainability potential.
Table 2.4 Radical innovation patterns and type of changes required
Innovation aspect Radical innovation patterns Type of changes required
Technology/
Production
design/embodiment
of technology
offers new design, radical
departure from past
embodiment
demands new system,
procedures, organisation
destroys value of existing
expertise
find out what kind of design fits
both technology and society
production
gain experience with production
system/organisation
techniques and organisation
skills (labour,
re-train workforce, recruit new
managerial,
technical)
labour, built new expertise
material/supplier extensive material substitution; search for reliable and cheap
relations
opening new relations with
new vendors
materials, find reliable suppliers
capital equipment extensive replacement of find, develop appropriate
existing capital with new types equipment and reliable
of equipment
equipment suppliers
knowledge and establishes link to whole new tap and find new sources for type
experience base scientific discipline, destroys of knowledge required, built new
value of existing knowledge
base
knowledge base
Market/Customer
relationship with
customer base
customer
applications
channels of
distribution and
service
customer
knowledge
modes of customer
communication
attracts extensive new
customer group, creates new
market
creates new set of applications,
new set of customer needs
requires new channels of
distribution, new service,
aftermarket support
intensive new knowledge
demand of customer, destroys
value of customer experience
totally new modes of
communication required
find out what the new market is
for the innovation, what are
appropriate niche markets
customise product/technology to
potential application and user
preferences
modify and built up channels of
distribution, service; develop
competencies for maintenance
set up pilots, test to analyse user
behaviour to product/technology,
develop means for educating
users
develop appropriate modes of
communication
The type of necessary institutional changes depends also largely on the
nature of the innovation itself. In the famous case of the Post-it Notes, for
example, the essential part of the innovation process was mainly internal to
the company 3M. The inventor had to overcome strong barriers within the