Summary Innovation Systems and Processes
By Cem Kalender & Maurits van Schaik
Content overview........................................................................................................................................5
Lecture 2 – Neo-Schumpeterian Economics...........................................................................................5
Lecture 3 – Innovation Systems..............................................................................................................5
Lecture 4 – Path Dependency and Path creation....................................................................................5
Lecture 5 – SCOT and Large Technical Systems......................................................................................5
SCOT..................................................................................................................................................5
LTS.....................................................................................................................................................6
Lecture 6 – User Innovations..................................................................................................................6
Lecture 7 – Structures and Institutions...................................................................................................6
Lecture 8 – Institutional Entrepreneurship.............................................................................................6
Lecture 1: Introduction................................................................................................................................7
Lecture 2: Neo-Schumpeterian Economics..................................................................................................8
2.1 Lecture..............................................................................................................................................8
2.1.1 Critique on Orthodox Economics / (Neoclassical economics) (1960s and 1970s).....................8
2.1.2 Solving the productivity growth puzzle (Neo-Schumpeterian Economics), by Nelson & Winter
...........................................................................................................................................................9
2.2 Nelson & Winter (1977) - In search for a useful theory for innovation...........................................10
2.2.1 Introduction............................................................................................................................11
2.2.2 The state of the art of current thinking..................................................................................11
2.2.3 Building blocks for a broader theoretical structure................................................................11
2.2.4 The generation of innovation.................................................................................................12
2.2.5 R&D strategies and probabilistic outcomes............................................................................12
2.2.6 Natural trajectories.................................................................................................................12
2.2.7 The selection environment.....................................................................................................13
2.2.8 Thoughts on the effects of institutional structure..................................................................13
2.2.9 Summary:...............................................................................................................................14
2.3 Dosi (1988) - The nature of the innovative process........................................................................14
2.3.1 Introduction............................................................................................................................14
2.3.2 Some stylised facts on innovation..........................................................................................14
2.3.3 Knowledge, opportunities and search: technological paradigms and trajectories.................14
2.3.4 Opportunities, market conditions and the inter-sectoral differences in innovativeness........15
2.3.5 Conclusions.............................................................................................................................15
2.3.6 Additional info on technological paradigms...........................................................................16
1
, 2.4 Schumpeter (1937) - Preface to the Japanese Edition of “Theorie der wirtschaftlichen
Entwicklung”.........................................................................................................................................17
Lecture 3 - Innovation systems..................................................................................................................17
3.1 Lecture............................................................................................................................................17
3.1.1 The linear model of innovation...............................................................................................18
3.1.2 IS as response to criticism on linear model.............................................................................18
3.1.3 National Innovation Systems..................................................................................................19
3.1.4 Regional innovation systems..................................................................................................19
3.1.5 Technological innovation systems..........................................................................................20
3.1.6 Policy implications of IS..........................................................................................................20
3.2. Lundvall (1988) - Innovation as an interactive process..................................................................20
3.3. Freeman (1997) - The diversity of national research systems........................................................21
3.4 Storz (2008) - Dynamics in innovation systems...............................................................................23
3.4.1 Innovation systems, path dependency and change................................................................23
3.4.2 Resources and processes of change.......................................................................................23
3.4.3 What’s in a system? The case of the Japanese innovation system.........................................23
3.4.4 Discussion and conclusions.....................................................................................................24
Lecture 4 - Path dependence and creation................................................................................................24
4.1 Lecture............................................................................................................................................24
4.1.1 Mural exercise path dependency...........................................................................................25
4.1.2 Path dependency: The Puzzle.................................................................................................25
4.1.3 David’s explanation:...............................................................................................................26
4.1.4 Arthur.....................................................................................................................................26
4.1.5 Path creation (actors’ deliberate attempt to influence a technological path in a certain
direction).........................................................................................................................................26
4.1.6 The embedded entrepreneur (as meander between path dependency and path creation). .27
4.1.7 Path dependence vs creation:................................................................................................28
4.2 Arthur (1989) - Competing technologies, increasing returns, and lock-ins by historical events.....28
4.2.1 Properties of the three Regimes.............................................................................................30
4.2.2 Policy implications..................................................................................................................30
4.3 David (1985) - Clio and the Economics of QWERTY........................................................................31
4.3.1 Purpose...................................................................................................................................31
4.3.2 Main message.........................................................................................................................31
4.4 Garud & Karnøe (2001) - Path creation as a process of mindful deviation.....................................31
Lecture 5: SCOT and Large Technical Systems...........................................................................................32
5.1 Lecture............................................................................................................................................32
5.1.1 The linear model of innovation:..............................................................................................33
5.1.2 Origin SCOT.............................................................................................................................33
5.1.3 Social construction of technology...........................................................................................34
5.1.4 Large Technical Systems.........................................................................................................34
5.2 Pinch & Bijker (1984) - The social construction of facts and artefacts............................................35
2
, 5.3 Van Lente & Bakker (2010) - Competing expectations: the case of hydrogen storage technologies
..............................................................................................................................................................37
5.4 Bijker (1987) - The social construction of Bakelite..........................................................................37
5.5 Hughes (1987) - The evolution of large technological systems.......................................................38
5.6 Hughes (1986) - The seamless web: technology, science, etcetera, etcetera.................................41
5.7 Markard & Truffer (2006) - Innovation processes in large technical systems.................................41
Lecture 6: User innovation.........................................................................................................................42
6.1 Lecture............................................................................................................................................42
6.1.1 Rogers (diffusion of innovations)............................................................................................42
6.1.2 Producers vs users (von Hippel)..............................................................................................43
6.1.3 Commercialization of user innovation....................................................................................44
6.1.4 Diffusion of user innovations..................................................................................................44
6.1.5 Community innovation (by van Oost):....................................................................................45
6.2 von Hippel (1976) - The dominant role of users in the scientific instrument innovation process...46
6.3 Hienerth (2006) - The commercialization of user innovations........................................................46
6.3.1 The motives for innovating.....................................................................................................46
6.3.2 The four stages in the commercialization process (of the rodeo kayak):................................46
6.3.3 Implications:...........................................................................................................................47
6.4 van Oost et al. (2009) - From innovation community to community innovation............................47
Lecture 7 Institutions and structures.........................................................................................................48
7.1 Lecture............................................................................................................................................48
7.1.1 Discussion...............................................................................................................................48
7.1.2 Institutions and institutionalization........................................................................................48
7.1.3 Sociological neo-institutionalism (the field from which the articles come)............................48
7.1.4 The “Iron Cage” of rationalization..........................................................................................49
7.1.5 The twist in Meyer/Rowan.....................................................................................................50
7.2 Meyer & Rowan (1977) - Institutionalized organizations: Formal structure as myth and ceremony
..............................................................................................................................................................52
7.2.1 Propositions regarding rationalized institutions elements:....................................................52
7.2.2 Origins of rational institutional myths....................................................................................53
7.2.3 Consequences institutional isomorphism:..............................................................................53
7.3 DiMaggio & Powell (2004) - The iron cage revisited: Institutional isomorphism and collective
rationality in organizational fields........................................................................................................54
7.3.1 The three central mechanisms behind institutional isomorphic change:...............................55
7.3.2 Predictors of isomorphic change............................................................................................55
7.4 Krücken (2003) - Mission Impossible? Institutional barriers to the diffusion of the “third academic
mission” at German universities...........................................................................................................56
7.4.1 Obstacles to becoming the 3rd academic mission (through transfer offices).........................56
Lecture 8: Institutional Entrepreneurship and Work.................................................................................57
8.1 Lecture............................................................................................................................................57
8.1.1 Sociological neo-institutionalism............................................................................................57
8.1.2 Agency vs. Structure...............................................................................................................58
3
, 8.1.3 Institutional logic....................................................................................................................58
8.1.4 Change towards nouvelle cuisine...........................................................................................58
8.1.5 Embedded agency..................................................................................................................59
8.1.6 Institutional entrepreneurship (Battilana)..............................................................................59
8.2 Rao, Monin & Durand (2003) - Institutional change in Toque Ville (Nouvelle cuisine)...................61
8.2.1 Institutional change................................................................................................................61
8.2.2 Classical Cuisine vs. Nouvelle cuisine......................................................................................61
8.2.3 Accepted hypotheses..............................................................................................................61
8.3 Battilana et al. (2009) - How actors change institutions.................................................................62
8.3.1 Paradox of embedded agency................................................................................................62
8.3.2 Field level characteristics and social position.........................................................................62
8.3.4 Activities change implementation..........................................................................................62
8.3.5 Implications............................................................................................................................63
4
By Cem Kalender & Maurits van Schaik
Content overview........................................................................................................................................5
Lecture 2 – Neo-Schumpeterian Economics...........................................................................................5
Lecture 3 – Innovation Systems..............................................................................................................5
Lecture 4 – Path Dependency and Path creation....................................................................................5
Lecture 5 – SCOT and Large Technical Systems......................................................................................5
SCOT..................................................................................................................................................5
LTS.....................................................................................................................................................6
Lecture 6 – User Innovations..................................................................................................................6
Lecture 7 – Structures and Institutions...................................................................................................6
Lecture 8 – Institutional Entrepreneurship.............................................................................................6
Lecture 1: Introduction................................................................................................................................7
Lecture 2: Neo-Schumpeterian Economics..................................................................................................8
2.1 Lecture..............................................................................................................................................8
2.1.1 Critique on Orthodox Economics / (Neoclassical economics) (1960s and 1970s).....................8
2.1.2 Solving the productivity growth puzzle (Neo-Schumpeterian Economics), by Nelson & Winter
...........................................................................................................................................................9
2.2 Nelson & Winter (1977) - In search for a useful theory for innovation...........................................10
2.2.1 Introduction............................................................................................................................11
2.2.2 The state of the art of current thinking..................................................................................11
2.2.3 Building blocks for a broader theoretical structure................................................................11
2.2.4 The generation of innovation.................................................................................................12
2.2.5 R&D strategies and probabilistic outcomes............................................................................12
2.2.6 Natural trajectories.................................................................................................................12
2.2.7 The selection environment.....................................................................................................13
2.2.8 Thoughts on the effects of institutional structure..................................................................13
2.2.9 Summary:...............................................................................................................................14
2.3 Dosi (1988) - The nature of the innovative process........................................................................14
2.3.1 Introduction............................................................................................................................14
2.3.2 Some stylised facts on innovation..........................................................................................14
2.3.3 Knowledge, opportunities and search: technological paradigms and trajectories.................14
2.3.4 Opportunities, market conditions and the inter-sectoral differences in innovativeness........15
2.3.5 Conclusions.............................................................................................................................15
2.3.6 Additional info on technological paradigms...........................................................................16
1
, 2.4 Schumpeter (1937) - Preface to the Japanese Edition of “Theorie der wirtschaftlichen
Entwicklung”.........................................................................................................................................17
Lecture 3 - Innovation systems..................................................................................................................17
3.1 Lecture............................................................................................................................................17
3.1.1 The linear model of innovation...............................................................................................18
3.1.2 IS as response to criticism on linear model.............................................................................18
3.1.3 National Innovation Systems..................................................................................................19
3.1.4 Regional innovation systems..................................................................................................19
3.1.5 Technological innovation systems..........................................................................................20
3.1.6 Policy implications of IS..........................................................................................................20
3.2. Lundvall (1988) - Innovation as an interactive process..................................................................20
3.3. Freeman (1997) - The diversity of national research systems........................................................21
3.4 Storz (2008) - Dynamics in innovation systems...............................................................................23
3.4.1 Innovation systems, path dependency and change................................................................23
3.4.2 Resources and processes of change.......................................................................................23
3.4.3 What’s in a system? The case of the Japanese innovation system.........................................23
3.4.4 Discussion and conclusions.....................................................................................................24
Lecture 4 - Path dependence and creation................................................................................................24
4.1 Lecture............................................................................................................................................24
4.1.1 Mural exercise path dependency...........................................................................................25
4.1.2 Path dependency: The Puzzle.................................................................................................25
4.1.3 David’s explanation:...............................................................................................................26
4.1.4 Arthur.....................................................................................................................................26
4.1.5 Path creation (actors’ deliberate attempt to influence a technological path in a certain
direction).........................................................................................................................................26
4.1.6 The embedded entrepreneur (as meander between path dependency and path creation). .27
4.1.7 Path dependence vs creation:................................................................................................28
4.2 Arthur (1989) - Competing technologies, increasing returns, and lock-ins by historical events.....28
4.2.1 Properties of the three Regimes.............................................................................................30
4.2.2 Policy implications..................................................................................................................30
4.3 David (1985) - Clio and the Economics of QWERTY........................................................................31
4.3.1 Purpose...................................................................................................................................31
4.3.2 Main message.........................................................................................................................31
4.4 Garud & Karnøe (2001) - Path creation as a process of mindful deviation.....................................31
Lecture 5: SCOT and Large Technical Systems...........................................................................................32
5.1 Lecture............................................................................................................................................32
5.1.1 The linear model of innovation:..............................................................................................33
5.1.2 Origin SCOT.............................................................................................................................33
5.1.3 Social construction of technology...........................................................................................34
5.1.4 Large Technical Systems.........................................................................................................34
5.2 Pinch & Bijker (1984) - The social construction of facts and artefacts............................................35
2
, 5.3 Van Lente & Bakker (2010) - Competing expectations: the case of hydrogen storage technologies
..............................................................................................................................................................37
5.4 Bijker (1987) - The social construction of Bakelite..........................................................................37
5.5 Hughes (1987) - The evolution of large technological systems.......................................................38
5.6 Hughes (1986) - The seamless web: technology, science, etcetera, etcetera.................................41
5.7 Markard & Truffer (2006) - Innovation processes in large technical systems.................................41
Lecture 6: User innovation.........................................................................................................................42
6.1 Lecture............................................................................................................................................42
6.1.1 Rogers (diffusion of innovations)............................................................................................42
6.1.2 Producers vs users (von Hippel)..............................................................................................43
6.1.3 Commercialization of user innovation....................................................................................44
6.1.4 Diffusion of user innovations..................................................................................................44
6.1.5 Community innovation (by van Oost):....................................................................................45
6.2 von Hippel (1976) - The dominant role of users in the scientific instrument innovation process...46
6.3 Hienerth (2006) - The commercialization of user innovations........................................................46
6.3.1 The motives for innovating.....................................................................................................46
6.3.2 The four stages in the commercialization process (of the rodeo kayak):................................46
6.3.3 Implications:...........................................................................................................................47
6.4 van Oost et al. (2009) - From innovation community to community innovation............................47
Lecture 7 Institutions and structures.........................................................................................................48
7.1 Lecture............................................................................................................................................48
7.1.1 Discussion...............................................................................................................................48
7.1.2 Institutions and institutionalization........................................................................................48
7.1.3 Sociological neo-institutionalism (the field from which the articles come)............................48
7.1.4 The “Iron Cage” of rationalization..........................................................................................49
7.1.5 The twist in Meyer/Rowan.....................................................................................................50
7.2 Meyer & Rowan (1977) - Institutionalized organizations: Formal structure as myth and ceremony
..............................................................................................................................................................52
7.2.1 Propositions regarding rationalized institutions elements:....................................................52
7.2.2 Origins of rational institutional myths....................................................................................53
7.2.3 Consequences institutional isomorphism:..............................................................................53
7.3 DiMaggio & Powell (2004) - The iron cage revisited: Institutional isomorphism and collective
rationality in organizational fields........................................................................................................54
7.3.1 The three central mechanisms behind institutional isomorphic change:...............................55
7.3.2 Predictors of isomorphic change............................................................................................55
7.4 Krücken (2003) - Mission Impossible? Institutional barriers to the diffusion of the “third academic
mission” at German universities...........................................................................................................56
7.4.1 Obstacles to becoming the 3rd academic mission (through transfer offices).........................56
Lecture 8: Institutional Entrepreneurship and Work.................................................................................57
8.1 Lecture............................................................................................................................................57
8.1.1 Sociological neo-institutionalism............................................................................................57
8.1.2 Agency vs. Structure...............................................................................................................58
3
, 8.1.3 Institutional logic....................................................................................................................58
8.1.4 Change towards nouvelle cuisine...........................................................................................58
8.1.5 Embedded agency..................................................................................................................59
8.1.6 Institutional entrepreneurship (Battilana)..............................................................................59
8.2 Rao, Monin & Durand (2003) - Institutional change in Toque Ville (Nouvelle cuisine)...................61
8.2.1 Institutional change................................................................................................................61
8.2.2 Classical Cuisine vs. Nouvelle cuisine......................................................................................61
8.2.3 Accepted hypotheses..............................................................................................................61
8.3 Battilana et al. (2009) - How actors change institutions.................................................................62
8.3.1 Paradox of embedded agency................................................................................................62
8.3.2 Field level characteristics and social position.........................................................................62
8.3.4 Activities change implementation..........................................................................................62
8.3.5 Implications............................................................................................................................63
4
